The year 2025 will bring significant changes in the building technology sector. One of the key changes concerns the conditions for the household credit. In this blog post, we will go through these changes, but we will also look at why it is still worthwhile to take advantage of the household credit and how it can make it easier to commission building services work. We also provide a practical quick guide on what information you need to report to the taxman about the household allowance.
Changes for 2025 in a nutshell
- The maximum deduction will be reduced to €1 600 per person, with a 35% deduction for the work component when the service is purchased from a business. In addition, the deductible will increase from €100 to €150.
- You can deduct €650 less for building services work than in 2024. If you hire an employee directly, the deduction is reduced to 13% of the salary and related employer contributions.
- The changes apply to all work carried out from 1.1.2025. In practice, this means that if you claim the household allowance in spring 2025 for work done during 2024, the 2024 rules will still apply. However, this assumes that the invoice was paid during 2024.
For more information and the necessary links, see the tax authorities' website.
But don't stop taking advantage of the household allowance
Even if the household allowance is reduced, you should not forget to take advantage of it. The household allowance is still a financially sensible way to make everyday life easier, to have the necessary work done by professionals and to save money. It allows you to maintain your home, improve your comfort and even carry out more expensive renovations.
The main purpose of the deduction is to encourage the use of legal and reliable service providers who pay taxes and comply with labour laws. This not only reduces the risk of the grey economy, but also supports honest entrepreneurs and creates jobs. It also helps to free up resources that can be used to reconcile work and family life, for example.
What can you do with the household allowance?
The household allowance is a broad and multi-purpose benefit that covers a wide range of jobs. It can be used not only for your own home, but also for maintenance work on your summer cottage or second home. You can also use the deduction for work done in your parents' or grandparents' home. However, you cannot use the household allowance for your own children's homes, for investment housing or for new building work.
You can take advantage of the household allowance for a wide range of building maintenance work, such as:
- for various installation work in your home, such as replacing a sink in a wet room or installing kitchen cabinets.
- renovation and installation of basement rooms, sauna, building services, which will improve the functionality and comfort of your home.
- electrical, plumbing and cabling work to ensure the maintenance and safety of your home infrastructure.
- the installation of a security lock and an electronic locking system, which will increase the security and modernise your home.
These works are examples of how the household allowance can support home maintenance and improve living comfort.
P.S Please note that all these building services are the kind of work that you can get help with from 24 Center. Take a look at the building services, installation and product packages we offer.
Quick guide to declaring the household tax credit
It is easy and flexible to declare the household allowance. You can declare as soon as you receive an invoice or receipt for the work. You can report the information directly on a valid tax card, so you benefit from the deduction immediately in the form of lower withholding tax. Alternatively, you can report the information on your tax return, in which case the deduction will be taken into account for tax refunds or residual tax.
Try the calculator on our website to see how much the household tax credit can benefit your economy.
Steps to notification:
- Collect the information you need:
- The business ID of the company (e.g. 24 Center's business ID: 2774786-8).
- The total amount of the invoice and the VAT portion of the work.
- If you have hired an employee:
- The employee's personal identification number.
- Gross salary paid to the employee.
- Possible incidental expenses.
- Make a declaration:
- On OmaVero.fi: Fill in the requested information and attach the invoice details.
- On the pre-completed tax return: add the information in the section concerning the household deduction.
Remember to keep all receipts and documents, as the Tax Administration may ask for them for audit purposes. A well-completed return will speed up processing and ensure that you get the full benefit.
Tax Administration article .
Contact 24 Center
In urgent cases, it is best to contact the 24 Center by phone: call 0100 2470. The number is available 24 hours a day, every day of the year.
In non-urgent cases, you can contact us not only by phone but also via chat. You can also leave a call request via the chat and we will contact you as soon as possible. To start a chat on our website, click on the yellow flashing ball in the bottom right-hand corner.
Ordering urgent work is easy using the online order form. Fill in the contact form and get help for the day of your choice. Alternatively, you can send an order and quote request by email to [email protected].
