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Bank suggest a tax on people working from home

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Comments

  • Registered Users, Registered Users 2 Posts: 4,277 ✭✭✭km991148


    It's not too bad..?

    Me though? I'm typing this from my desk out in the square...


  • Registered Users, Registered Users 2 Posts: 4,277 ✭✭✭km991148


    storker wrote: »
    Anyone working from home is already paying more tax in the form of VAT on increased gas and electricity bills.

    That's negligible really, considering most people are paying less tax on transport and other costs.

    Sticking a WFH tax on top is taking the piss, but it would not surprise me if they tried adding some BIK related bs.


  • Registered Users, Registered Users 2 Posts: 10,905 ✭✭✭✭Bob24


    storker wrote: »
    Anyone working from home is already paying more tax in the form of VAT on increased gas and electricity bills.

    If you start looking at it that way it is an endless argument though.

    You could also say they are paying a lot less tax on petrol for their car.


  • Registered Users, Registered Users 2 Posts: 284 ✭✭thegetawaycar


    Bob24 wrote: »
    If you start looking at it that way it is an endless argument though.

    You could also say they are paying a lot less tax on petrol for their car.

    But you can't as many don't use a car to get to work where as if WFH you are definitely using more electricity.


  • Registered Users, Registered Users 2 Posts: 20,195 ✭✭✭✭jimgoose


    They have their porridge. If anything, t's costing me money to work from home, and I'll be putting in a claim for my few shillings at year-end with Revenue.


  • Registered Users, Registered Users 2 Posts: 10,905 ✭✭✭✭Bob24


    But you can't as many don't use a car to get to work where as if WFH you are definitely using more electricity.

    Some have central heating for which the cost doesn't depend on their consumption. And without heating the additional electric consumption is minimal.

    Also without going to the office, many aren't paying VAT anymore on all the services they usually consume (VAT for their food at the canteen which on average is more costly than their food at home, etc).

    It is an endless discussion with no obvious answer as you can find arguments either way and it depends on each individual case (some will end-up paying more indirect tax in total, other less ... and frankly there is no convincing argument given yet to conclude on the average direction).


  • Registered Users, Registered Users 2 Posts: 4,277 ✭✭✭km991148


    I would assume the difference in VAT paid is negligible in the context of an individual employee and wouldn't make much difference to the amount of money people have in their pockets.
    Most people have some transport commuting costs and buy food etc when not at home (yes, some can walk, some take a lunch, but in general).

    But a 5pc tax on salary, that's pretty steep in comparison.


    (From the gov point of view VAT receipts would probably have taken a massive hit due to less disposable income being spent, but that's a completely separate issue)


  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    But you can't as many don't use a car to get to work where as if WFH you are definitely using more electricity.

    Or maybe people are finally getting use out of their solar panels whose peak daytime hours of generation have been wasted.


  • Registered Users, Registered Users 2 Posts: 284 ✭✭thegetawaycar


    Bob24 wrote: »
    Some have central heating for which the cost doesn't depend on their consumption. And without heating the additional electric consumption is minimal.

    Also without going to the office, many aren't paying VAT anymore on all the services they usually consume (VAT for their food at the canteen which on average is more costly than their food at home, etc).

    It is an endless discussion with no obvious answer as you can find arguments either way and it depends on each individual case (some will end-up paying more indirect tax in total, other less ... and frankly there is no convincing argument given yet to conclude on the average direction).

    I disagree, the only thing that is definitive is you WILL use more electricity by working at home.

    The rest is possible spends, probable or indirect and really not something you can 100% relate to work from home.

    I do agree with the part where you can find arguments either way, I've even had people telling me it should be given a tax break as it will help lower carbon emissions (same person now drives the kids to school which he never did before).


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  • Registered Users, Registered Users 2 Posts: 115 ✭✭NuttyMcNutty


    You'd imagine that their loan book would also have significant exposure to commercial assets which may go down in value.

    In the US, property loans are often non-recourse.

    I fcuking knew it, there's always a book involved coming up to crimbo.


  • Registered Users, Registered Users 2 Posts: 29,415 ✭✭✭✭end of the road


    We should tax all welfare payments at a flat 20% rate. This would bring in €4bn from the €20bn annual welfare budget. Then use that €4bn to give substantial tax cuts to the wealth generators, innovators and risk takers of this nation.




    would be unviable as it would bring undue hardship upon the vulnerable and least well off in society, and tax cuts are unviable due to cost and less money into the economy to spend on all of the things we need.

    I'm very highly educated. I know words, i have the best words, nobody has better words then me.



  • Registered Users, Registered Users 2 Posts: 1,022 ✭✭✭Iscreamkone


    Interesting that nobody has yet suggested that rents should be increased for those working from home - with increased wear and tear etc.


  • Registered Users, Registered Users 2 Posts: 19,802 ✭✭✭✭suicide_circus


    Targeting WFH folk with extra tax, probably not but i'd imagine general tax increases arent too far away to pay for all the lockdown damage and borrowing


  • Registered Users, Registered Users 2 Posts: 29,816 ✭✭✭✭blanch152


    We’re already at the full limit for taxes, its incredibly unfair to expect almost any country in western europe to increase taxes.

    We are not.

    Taxes on average incomes and below average incomes are the lowest in Europe.

    Taxes on homes are the lowest in Europe.

    Taxes on inheritance and capital gains are full of loopholes that should be closed.


    Plenty of taxes to increase.


  • Registered Users, Registered Users 2 Posts: 5,947 ✭✭✭daheff


    gerrybbadd wrote: »
    Yes. You can do this currently.

    not quite

    you get a tax benefit @ standard rate on a portion of the costs.

    A company would get 100% relief on costs against profits.




    the suggestion from the bank to increase taxes on wfh folks is insane. It seems to be a self serving suggestion.

    Recently Barclays in UK did an about turn on the WFH idea too. They realised that London city workers indirectly kept 1.7 extra service people inside the city employed (coffee shops, laundrettes, rail & bus staff). Barclays have a lot to lose if those staff & their companies shut down as Barclays have lent a lot of money to their companies and provide banking services to these people. And that the bank provide lending facilities to office block/retail unit owners. So they've a lot of skin in the game.


    I would hazard a guess that Deutsche Bank are thinking along these lines too


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  • Registered Users, Registered Users 2 Posts: 26,280 ✭✭✭✭Eric Cartman


    blanch152 wrote: »
    We are not.

    Taxes on average incomes and below average incomes are the lowest in Europe.

    Taxes on homes are the lowest in Europe.

    Taxes on inheritance and capital gains are full of loopholes that should be closed.


    Plenty of taxes to increase.

    Perhaps but middle and high income earners are the most shafted in the world here


  • Registered Users, Registered Users 2 Posts: 29,139 ✭✭✭✭_Kaiser_


    thomas 123 wrote: »
    As someone working from home, no you cant.

    You can try claim 10% percent back - https://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/eworking_and_tax_relief.html

    Just wanted to clarify for anyone who is not working from home and is thinking they are hard done by.

    Maybe you are looking at it from the perspective of a self employed person?

    I had a look at that (thanks for the link) and looking at their example...
    Example

    Mary works from home for 6 months while her office is closed due to the COVID-19 emergency. During that 6 months her household bills for heating and electricity come to €1000 and her broadband comes to €300. At the end of the year she can claim tax back on expenses of:

    €100 for heating and electricity (10% of €1000)
    €90 for broadband (30% of €300)
    €190 in total
    The amount she gets back depends on her rate of tax. If she pays tax at the higher tax rate of 40% she will get €76 back from her taxes (40% of €190). If she pays tax at the lower rate of 20%, she will receive €38 back (20% of €190).

    So if you pay tax at 40% as many office workers (myself included) would, out of your €1300 expense, you get €76??

    Hardly worth the hassle!


  • Registered Users, Registered Users 2 Posts: 2,900 ✭✭✭thomas 123


    _Kaiser_ wrote: »
    I had a look at that (thanks for the link) and looking at their example...



    So if you pay tax at 40% as many office workers (myself included) would, out of your €1300 expense, you get €76??

    Hardly worth the hassle!

    Yup, dont spend it all in the one shop.

    Its certainly not a "write off" that 10 people thanked.

    In fact id imagine its probably less than most sectors get as tax credits for flat rate expenses.


  • Registered Users, Registered Users 2 Posts: 81,220 ✭✭✭✭biko


    "Is there anything to be said for another tax?"
    DB


  • Registered Users, Registered Users 2 Posts: 410 ✭✭bewareofthedog


    Banks looking for more money, who woulda thunk it.


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