Beautiful Virgin Islands

Tuesday, Apr 07, 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

Beautiful Virgin Islands
0:00
0:00
Close
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
UK Signals Non-Involvement in Iran Conflict as Trump Reasserts Firm Deterrence Stance
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
×