The Work-related Costs Scheme (WKR) explained
The work-related costs scheme is a scheme that has existed since 2015. It is a new system for the tax accounting of reimbursements and provisions that you give to your employees. We notice that too many companies and organisations frequently encounter ambiguities when organising, for example incentive travel of Events for their staff members.
Broad WKR category
The ambiguity that often exists is because the WKR has a fairly broad character regarding allocations to staff. This ranges from dinners to a bunch of flowers or a Christmas hamper. The WKR means that a maximum of 1,2% of the total taxable wage may be reimbursed tax-free to the staff. However, there are a number of exemptions possible and these apply when an event has a purely business, substantive and/or training purpose.
WKR exemptions
A number of exemptions are possible:
- Employee participation is on a mandatory basis (so no registration or optional). It is also important to properly outline the business aspect and the components in the programme;
- Events organised by the staff association, or taking place on the company's own premises, fall outside the WKR;
- The “necessity criterion” is important for the HM Revenue & Customs. This means to what extent participating in the activity is necessary for the proper functioning of the staff;
- Travel for employees who work at a foreign branch falls outside the WKR.
Everything you need to know about the WKR
Would you like to know more about applying the WKR for your next incentive trip, for example? Then please contact one of our goMICE consultants. We can be reached from Monday to Friday from 9:00 to 17:30 on 088-202-30-40 or by email via Hello@goMICE.nl
The above information is intended for informational purposes only. No rights can be derived from it with regard to our organisation. To prevent misunderstandings, we advise you to consult your own accountant about the implications of the WKR for your specific situation.