The Work Related Costs Scheme
The Work Related Costs Scheme (Dutch acronym: WKR) has finally been given the go-ahead … but are you ready to rumble?
It has taken considerably more time than had originally been anticipated, but the Work Related Costs Scheme has finally been given the go-ahead. It is now up to the employers with effect from 1 January 2015 to embrace the new scheme.
Our conclusion where the new legislation is concerned:
- you will have to bite the bullet, as directors-cum-principal shareholders too will be affected by the new legislation;
- in addition to having implications of a tax-related nature, the new scheme features particular human resource elements that will require considerable processing time;
- the introduction and definitions in relation to reimbursements and employees’ costs more often than not will come across as very different from what you had been used to all these years;
- your financial records will have to be thoroughly geared to the new scheme;
- costs are bound to soar if you don’t take any action;
- you will have to make the most of the rest of the current year to put yourself in the best possible fiscal position.
We would recommend that you:
- instantly start ferreting out what you need to know substantively about the new legislation;
- identify and classify all costs and expenses that are related to your staff;
- have a tax expert perform a WKR audit;
- keep your eyes peeled for potential new policy plans when the third Tuesday in September rolls around (this being the day on which the new parliamentary year traditionally kicks off in the Netherlands);
- make sure that you have completed your preparations by mid-December and that those in charge of your financial and human resource records are fully up to speed on the changes, as it will be up to them to see to the best possible implementation;
- do not hesitate to contact us if you have any questions. Remember that we are there to help you!