London Daily

Focus on the big picture.
Saturday, Aug 22, 2026

People working from home 'should pay more tax' after pandemic

People working from home 'should pay more tax' after pandemic

Staff who continue to work from home after the pandemic should be taxed to help support workers in lower-paid jobs, a new report has suggested.

Research from Deutsche Bank said workers should be taxed 5% of their salary each day if they choose to work remotely after coronavirus restrictions lift.

The bank argues the tax would leave the average employee no worse off, since they would be saving money on commuting, buying lunch out or purchasing more work clothes.

For employers who do not provide their workforce with a permanent desk, the bank suggests they should pay a work-from-home tax while those who are self-employed or on low-incomes should be exempt.

According to the report, this tax could create $48 billion (£36 billion) a year in the US and €20 billion (£17.8 billion) in Germany.

In the UK, Deutsche Bank calculates the tax could generate £7bn a year, enabling the Government to pay out £2,000 grants annually to low-income employees who have to travel to work as well as those under threat of redundancy.

It comes as the UK government’s website states Brits can claim tax relief on some of bills if they are required to work from home.

Deutsche Bank strategist Luke Templeman wrote: ‘For years we have needed a tax on remote workers. Covid has just made it obvious.


Deutsche Bank suggests staff who work from home should be taxed


‘Quite simply, our economic system is not set up to cope with people who can disconnect themselves from face-to-face society.

‘Those who can work from home receive direct and indirect financial benefits and they should be taxed to smooth the transition process for those who have been suddenly displaced.’

He also said: ‘A big chunk of people have disconnected themselves from the face-to-face world yet are still leading a full economic life.

‘That means remote workers are contributing less to the infrastructure of the economy whilst still receiving its benefits. That is a big problem for the economy.’


Deutsche Bank suggests staff who work from home should be taxed


A 5% work-from-home tax works out at around £7, based on a salary of £35,000.

It comes as millions of people in the UK have transitioned into remote working as employers closed offices to contain the spread of coronavirus.

Meanwhile, many employers have said staff will now be allowed to work from home permanently – either full-time or part-time.

The Deutsche Bank research also shows one-third of people want to continue working at least two days a week from home once the pandemic is over.

But the bank said there are millions of workers, like factory staff and nurses, who cannot work remotely.

Mr Templeman wrote: ‘The virus has benefitted those who can do their jobs virtually, such as bank analysts, and threatened the livelihoods or health of those who can’t.’

Newsletter

Related Articles

0:00
0:00
Close
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
UK Retail Sentiment Improves as Summer Spending Boosts Consumer Confidence
UK Aid Cuts Draw Warnings From Charities Over Humanitarian Consequences
UK Financial Conduct Authority Issues Guidance for Motor Finance Redress Scheme
UK Met Office Launches Aviation Programme to Reduce Climate Impact of Persistent Contrails
Former UK Civil Service Chief Received Record 500,000 Pound Severance Payment
West Midlands to Bring Bus Network Under Public Franchising Model
UK Government Drops Plan to Relax Affordable Housing Requirements After Backlash
×