Brexit and the craftsman bonus

Brexit also has consequences for the tax deductibility of tradesmen’s services.

This article is part of the special feature " Tax bonus for craftsmen's invoices: What you should know".

If the United Kingdom leaves the European Union, however and whenever that may be, household-related services and tradesmen's services provided there will no longer be tax deductible. 

Background: In the 2008 Annual Tax Act, effective from 2007, the German legislature decided that all households in the EU and the European Economic Area (EEA) could deduct their household-related services and skilled trades services for tax purposes – provided the holiday home owners remained liable for tax in Germany. This abolished the previous restriction to German households.

Currently, the rule is: Anyone who is liable for tax in Germany and has their house in Great Britain renovated or the garden of their British holiday home maintained by a gardener can claim these costs in their German income tax return, reports the United Wage Tax Assistance Association (VLH). Specifically, up to 20 percent of the invoices for skilled trades services, or a maximum of €1.200 per year, can be deducted from taxes.

After Brexit: If Great Britain leaves the EU, these tax advantages will disappear completely.

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Incidentally, according to the 2011 microcensus of the Federal Statistical Office, approximately 8.000 working people commute between Germany and Great Britain. For them, nothing will change regarding commuter allowances or double household expenses if Great Britain leaves the EU.

Source: United Wage Tax Assistance