Bill services provided by family members
September 22, 2015 | 40,00 EUR | answered by StB Patrick Färber
Dear Sir or Madam,
I work as a self-employed project manager. I have an external home office with an adjoining room of approximately 40 square meters. My wife provides cleaning services for me there, among other tasks. How can I include this service in my expenses? My wife is an employee and does not have a business of her own. Do I need to consider any amount limits, calculate social security contributions, or can I simply deduct a fixed amount (e.g. 150 €) per month?
Thank you for your assistance.
Dear questioner,
Based on the information you provided and taking into account your efforts, I can answer as follows:
Employment relationships between spouses are viewed very critically by the tax authorities, but they are permissible and tax deductible if they are agreed upon and carried out as if between unrelated third parties.
In your case, it seems like a so-called mini-job (EUR 450.00) could be the best option. You would register your wife as an employee in your business and pay her a maximum of EUR 450.00 per month. As the employer, you would pay flat-rate taxes and social security contributions. Your wife could have a mini-job in addition to her regular employment, and you could deduct the payments as business expenses. However, this involves some effort (registrations, semi-annual/annual reporting of wages and payment of flat-rate contributions), so it may not be suitable for everyone. You can find more information at www.minijob-zentrale.de and make a decision for yourself.
Having your wife work on a self-employed basis would lead to much larger complications (registration as self-employed, additional tax returns, issues of pseudo self-employment, etc.).
Therefore, the "mini-job" option seems quite sensible to me. Consider seeking advice from a local tax advisor or even from the Mini-Job-Zentrale! I hope this information is helpful.
Best regards,
Patrick Färber, Tax Advisor
