What are work-related expenses?
Work-related or so-called "other employee expenses" are not commonly utilized. According to Skat, this is mainly due to the fact that they are difficult to obtain.
However, in a time where a lot of people are self-employed, freelancers and entrepreneurs, this category of reductions may still be relevant.
In this article, we will cover:- What work-related expenses are
- Which expenses you are eligible to receive deductions for
- Other conditions you will need to be aware of
- Whether you are eligible to receive any deductions
What are work-related expenses?
Work-related expenses are expenses you have paid to be able to successfully do your work. These are also known as "other employee expenses".
To offer you an example, this could be that you need to purchase a computer to do your job. Most work places would likely provide you with one; however, if you are tasked with purchasing it yourself, you are eligible to receive a deduction. The specific types of expenses you are eligible to receive deductions for will be covered further down.
Which expenses are you eligible to receive deductions for?
There are several types of expenses you can receive deductions for. The following are the ones that are the most commonly used:
Courses
If you take a course to maintain or update your professional education, then you can get a deduction. However, primary and secondary education does not count.
Phone
This is only about phone expenses if you have made calls for your work that is not refunded by your employer. That also means that subscription costs or phone purchases do not count here.
IT equipment
If you have bought your own computer, monitor, keybord, etc., which is necessary for you to work, then you can get deductions. However, the deduction depends on both how much you use the equipment for work compared to privately and whether it should be “written off” (depreciated) over a number of years.
Read at the bottom of the article how to see this.
Work-related literature
The literature must be necessary for you to do your work. So-called “popular science” magazines do not count.
Work clothing
Work clothing should be understood as special clothing that is necessary for you to work, for example, a uniform that you have purchased yourself and not been reimbursed by your employer. It can’t just be clothes you buy because the workplace requires nice attire such as suits and dresses.
Customer dinners
This is a rare deduction in that it covers customer dinners necessary to directly secure your income, for example, if you are paid in sales commissions. However, most employers cover these expenses for you. But if it is not refunded, then you can get a deduction for part of the expense.
Read at the bottom of the article how to see this.
Inventory and assets
Inventory and assets of operation are larger purchases that are necessary for your work e.g. a piano as a piano teacher. However, the deduction depends on both how much you use the equipment for work compared to privately and whether it should be “written off” (depreciated) over a number of years.
Read at the bottom of the article how to see this.