What is the workroom deduction?

Aske Buemann

CEO & Co-founder

Deduction for working room

The workroom deduction is a relatively rare deduction. Although it has been in the media a lot during Corona, the rules are very restrictive. For example, a temporary desk in the living room or children's room is not enough under Corona. But exactly what it takes to get the deduction, we will go through in this article. And then we will go through an example that SKAT has approved.

The deduction falls under the group of work-related expenses, which we have also written a post about here. So if you want to see the full overview of work-related expenses that can be deducted, it's worth taking a look.

In this article we will go through:

  • What deductions for working room are
  • An example approved by SKAT
  • Other conditions to be aware of
  • Whether you can get deductions yourself

What is the workroom deduction?

The workroom deduction has been much debated, especially during Corona, when up to 40% of the population worked at home. But unfortunately, the rules are very strict and have not been updated for a long time, so they are not adapted to the new norm of working at home to a much greater extent.

The main elements of SKAT's assessment are the following three.

  • First and foremost, it has to be permanent. This means that it can't just be a desk that you set up while Corona is on.
  • Secondly, the room must be arranged in such a way that it CANNOT be used for private purposes. In other words, it doesn't matter if you actually use the room privately, because it must be designed so that it cannot be used for anything other than work.
  • In addition, it is also required that you actually spend a significant part of your working time in the room during normal working hours. In other words, it must be necessary for you to be able to do your work at all. For example, 1-2 hours a day is not sufficient.

These are the three main requirements that most people fail - especially the first two. There are a number of additional requirements, which are described in the section below.

If you actually meet all the requirements, then comes the calculation of the deduction itself. The expenses you can deduct are a proportion of your housing costs such as electricity, heating and property tax, depending on whether you own or rent your home. The proportion is calculated based on the size of the room in relation to the entire home, so if your room is 16 sqm. out of a house of 100 sqm, you will get 16% of the expenses as a deduction.

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An example approved by SKAT

An example of what SKAT approves is a room specifically designed and equipped for practicing and recording music. The picture here is for illustration purposes only.

In this case, the room was specially soundproofed and furnished with a considerable amount of large musical instruments, technical equipment, loudspeakers, etc. Therefore, it was considered to be exclusively suitable for the practice of music and thus not for private use.

Other examples are a furnished laboratory, a workshop or a design studio.

What else should you be aware of?

In addition to the points above, there are several key elements to be aware of with this deduction:

  • The room must be necessary for you to carry out your work. In other words, you must not be able to carry out your work without the room
  • You must be paid for the work you do in the room
  • You must have proof of the cost of the room
  • Expenditure must be above the minimum threshold of € 6,300 (2020)

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In TaxHelper, we help you find the deductions you're entitled to. You answer a few simple questions that take just 15 minutes to complete.

Then we report the deductions, and you get an extra DKK 2,704 back in tax. At the same time, you only pay if you get a tax saving.

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