The working expenses scheme: make smart use of it this year

The gingerbread cookies have been on the shelves for weeks. While you're still wondering if it's a bit early for chocolate letters, the first brochures for Christmas hampers are already landing on your doormat. And before you know it, you'll be sitting down with your family for Christmas dinner. The year is slowly coming to an end.

For entrepreneurs, this is the perfect time to reflect on a tradition that is just as ingrained as gourmet dining: the Christmas hamper. Whether it's a box full of treats, a well-stocked snack platter or a voucher for a night out, employees appreciate it. But did you know that this can also be interesting from a tax perspective through the work-related expenses scheme (WKR)?

What is the WKR again?
The WKR allows you to give certain allowances and benefits to employees tax-free. Examples include Christmas hampers, staff parties or gym memberships. You do not have to pay these allowances per employee: everything is included in a single collective “tax-free allowance”.

How much discretionary scope will you have in 2025?

• You may spend 2% tax-free on the first €400,000 of the taxable wage bill.
• For the excess amount, this is 1.18%.

What if you spend more?
If you exceed the discretionary scope, you as an employer will pay 80% final levy on the excess amount. However, depending on the situation, it may still be worthwhile (for example, for a joint staff party or special anniversary expenses).

Smart choices at the end of 2025
Now, towards the end of the year, is the time to decide how you want to spend that discretionary amount. Consider:

• Christmas hamper or end-of-year gift – a classic, always appreciated
• A joint dinner or party – after a busy year, a way to show appreciation and strengthen team spirit
• Company bicycle or vitality programme – fits in nicely with the trend towards sustainable employability

Note the specific exemptions
Some items are not even charged to the discretionary scope. For example:

• Travel allowance up to €0.23 per kilometre
• Business courses or training
• Health and safety facilities in the workplace

It is therefore important to know what you can include in the discretionary scope and what falls outside it. This will prevent you from unnecessarily burdening the WKR.

Tip for entrepreneurs
Make an overview now: how much discretionary scope is left? Are there plans for Christmas hampers or a party? By planning smartly, you can make optimal use of the scope and surprise your employees with something nice.