Remember-the household tax credit

Did you do any building maintenance or installation work in your home? - Remember to claim the household deduction in 2024

The government has not yet taken a position on the amount of the 2024 household allowance.24 Center will monitor the situation and update the information as and when the government takes decisions. 

The household allowance can be claimed immediately after the work has been purchased or retroactively within three years. Has your home been renovated by an outside contractor? Or did you have an electronic locking system installed in your home? Tax relief is available for all these works. In this blog post, we've put together a summary of what the homeowner's allowance means and instructions on how to declare your own building work commissioned from outside professionals to the taxman.

 

Increasing employment through the household tax credit

 

The purpose of the household allowance is to increase employment by encouraging households to outsource work that they have previously done themselves. It also aims to combat the informal economy. To qualify for the household allowance, the business or self-employed person carrying out the work must be registered in the pre-tax register. You can easily check this on the ytj.fi website.

You can deduct 40% of the proportion of the work invoiced by the company as a household allowance. This means that you can deduct only the cost of the work, not the cost of materials or travel. If you hire an employee, you can deduct 15% of their salary and the employer's incidental expenses.

You can take advantage of the household allowance for the technical maintenance of your home, summer cottage or second home. You can also use the household allowance if you are renovating your parents' or grandparents' home, but you cannot use it to maintain your own children's homes. Investment housing and new construction are also excluded from the household allowance.

For example, you can get a household deduction for the following renovation work:

  • renovation of rooms in the home
  • renovation of the basement and sauna of a detached house
  • electrical, plumbing and cabling work in a detached house
  • painting of an outbuilding
  • safety lock installation

P.S Please note that all these jobs are the kind you can get help with from 24 Center. 

Do you still have oil heating in your home?


The household allowance has been increased for the replacement of oil heating for the period 2022-2027, at the same rate as for care services. This means that 60% of the cost of the work will be reimbursed and the maximum deduction will be €3,500. Through this experiment, the government aims to encourage as many households as possible to switch from oil heating to a more environmentally friendly form of heating. 

At the moment, the increase in the rebate only applies to households that give up oil heating. However, studies are also being carried out for other energy sources. The majority of households that abandon oil heating will opt for air source heat pumps or geothermal heating as their new heating source, but district heating will also continue to be used.

 

Instructions for making a household tax deduction

 

You can file a tax return for the work done as soon as you receive a receipt or invoice from the person who did the work. You can enter the deduction information either on the tax card or on the tax return. If you report the information on the tax card, you will get the benefit of the deduction immediately. If you report the information on your tax return, the deduction will later be taken into account in the amount of the residual tax or tax refund.

You can easily make a tax deduction declaration on the OmaVero.fi website. To complete the declaration, you will need the following information:

  • company business ID (24 Center business ID: 2774786-8)
  • the total amount of the invoice
  • the VAT element of the work.

If you have hired an employee to do work that is deductible as household work, you need:

  • the employee's personal identification number
  • gross salary paid to the employee (including withholding tax)
  • information on the incidental expenses of salaries.

Remember to keep all your receipts so that the tax authorities can check them if necessary.

 

Things to consider


✔ The deductible for the household allowance is €100, from which no deduction can be made. The deductible always applies for a calendar year and is personal, i.e. persons living in the same household pay their own deductible.

✔ Maximum deduction of €2,250 per person. As the deduction is personal, a spouse can receive a total deduction of €4,500. If the €2,250 limit is not exceeded, it is advisable to claim the deduction for only one person, so that the deductible is exceeded only once.

✔ Forgot to make a household deduction - no problem, you can do it retrospectively for three years. Contact the tax office and ask for a correction.

✔ The formula for making tax deductions is: (Work share € x 40%) - €100 = Household deduction
24 Center's calculator allows you to estimate how much deduction you will receive: https://24center.fi/kotitalousvahennys/ The Household deduction tool has also been praised as useful when our customers are planning and budgeting for future renovations. 

Read more on vero.fi. 


24 Center to help with your home's building services

 

24 Center is a building services on-call centre that provides a high quality service for building services problems regardless of time and place. You can get help with one call for both urgent emergencies and unhurried everyday tasks. With our extensive network of contractors, you'll find the best building services professionals in your area. Find your nearest available plumber, electrician, locksmith or even a vacuum truck with ease - just one call to 0100 2470 or place an order for unhurried work. online order hereä

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