Working Cost Regulation
As of January 1, the work-related costs regulation (WKR) has been adjusted. But what exactly about the new WKR regulation when you want to organize a company outing or team building? Or maybe you have read about the new WKR and are thinking about cutting back on the company outing? Then it's good to know that a meeting, team building or relationship day falls outside the WKR. A company outing can also fall outside the WKR under certain conditions. Below you can read exactly how this works. And we give some useful tips if you just want to organize a fun company outing.
What exactly is the WKR?
Under the work-related costs scheme, employers can give their staff untaxed benefits in kind up to the set percentage of 1.2% of the total wage bill. These include, for example, Christmas hampers, dinners, a bicycle, staff parties and the company outing. Under the work-related costs scheme, companies no longer have to keep track of these extras per employee. This is allowed in a single calculation for the entire company. If these costs exceed 1.2%, the employer pays 80% tax on the allowances. Assuming an average salary of 33,000 Euro per year, almost 400 Euro can be freely spent within the WKR. With an average price for a complete company outing of about € 75, - this is usually not a problem. Team building and team training fall outside the WKR. Training and education of and for staff are not covered by the WKR. When a company outing is typically team building and takes place during the week in the boss's time, it does not fall under the WKR. If you want to organize a company outing on the weekend, make sure it falls under team building or training.
Company outing with added value falls outside the WKR
More and more companies are opting for a company outing with added value. The WKR means that you have a fixed budget for the annual company outing which is tax deductible. However, when you give the company outing a business character, it falls outside the WKR. Think for example of a company presentation in which a preview of the future of the company is shown, accompanied by an appropriate activity such as team building with sheep. During this team training, for example, the new cooperation models are explained, whereby fun and depth go hand in hand. The costs of such an event are 100% business and therefore untaxed.
A meeting or conference falls outside the WKR
Sometimes it is good to organize meetings outside. Then choose an inspiring, special location and combine the meeting with a meeting break. We can seamlessly link the meeting break to the subject of the meeting, thus combining the useful and the pleasant. A unique experience for the participants and the costs are not covered by the work expense scheme.
A relation day falls outside the WKR
Organizing a corporate event is not covered by the WKR. With a relationship day, you invest in your customers without being charged by the tax authorities. But what exactly is a corporate event? We make sure that it is well defined on the final invoice, so you do not run the risk of being caught out by the tax authorities.
How do you organize an outing that is fully deductible?
Give your company outing a business character (for example, a preview of the future of your company, a company presentation with the results of the past year) or add a substantive element to the meeting to promote business interest. You can think of a team-building activity or a training course. The costs of the event are then 100% business and therefore untaxed.
Tips to reduce WKR pressure
Tip 1: Combine your outing with a meeting including lunch and/or dinner.
Tip 2: Combine your staff outing with another component from the WKR, for example the Christmas package. Instead of a Christmas package, you can, for example, offer a Christmas dinner with activity program and Christmas gift at the end of the year. Two in one.
Tip 3: If your company happens to have an anniversary year, the government again has a separate regulation for this. The same goes for employees who have several years of service within the organization. This is worth looking into and often provides benefits!
Questions about the Expense Allowance Scheme?
We are happy to help you put together an inspiring and fully catered company outing, staff day, relationship day, team training or other business meeting that falls completely outside the WKR.
Contact us for options and a customized proposal.