Research suggests employees who work from home should pay a 5% tax

Staff who continue to work from home after the pandemic should have to pay a 5% tax, according to a report by Deutsche Bank.

Research by the German lender’s economic research unit has calculated that the tax could raise £7bn in the UK, as is reported by the Guardian.

The firm argues that the tax would leave workers no worse off due to the fact that they are saving on commuting and day-to-day expenses.

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The report also suggests that the money raised could be used to subsidise lower-paid workers who are unable to work from home. 

Jim Reid, global head of fundamental credit strategy and thematic research at Deutsche Bank, said: “Working from home will be part of the ‘new normal’ well after the pandemic has passed.

“Our calculations suggest the amounts raised could fund material income subsidies for low-income earners who are unable to work remotely and thus assume more ‘old economy’ and health risks.”

The calculations show that taxing remote workers could provide a grant of £2,000 to those who are over the age of 25 and earn the minimum wage.

Luke Templeman, strategist at Deutsche Bank, said: “For years we have needed a tax on remote workers – Covid has just made it obvious,”

“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.”

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