Work-related expenses scheme (WRCS)
Would you like to reward your employees or enhance your employment package? Under the work-related expenses scheme (WRCS), you can provide tax-free reimbursements and benefits in kind to your employees.
The WRCS sets out the conditions under which employers may provide reimbursements, benefits in kind and provisions to employees free of tax. In some cases, a specific statutory exemption applies, or the benefit is valued at nil for tax purposes because it does not qualify as taxable earnings. If no exemption applies, you may be able to make use of the discretionary margin under the WRCS. The discretionary margin is a percentage of your organisation’s total taxable payroll. If discretionary margin remains available, you can designate the reimbursement accordingly, so that neither the employer nor the employee pays tax on it, subject to the relevant conditions.
Changes to the WRCS
In 2026, the discretionary margin will remain unchanged compared with 2025. From 2027 onwards, the margin will be expanded further.
Discretionary margin in 2026:
2.00% on the first € 400,000 of taxable payroll
1.18% on the excess
From 2027 onwards, the percentage on the first € 400,000 will increase to:
2.16% on the first € 400,000
1.18% above that (unchanged)
This additional headroom will give employers greater scope, from 2027 onwards, to provide tax-free benefits. Examples include a Christmas hamper, a home working allowance or a dedicated training budget.
Tailor-made training: make the most of the WRCS
The WRCS offers many opportunities to reward your employees in a tax-efficient way. But how can you make the most of these opportunities without facing unexpected tax consequences later on? Our specialists can help you structure your reimbursements and benefits, ensuring you remain compliant while making full use of the available options.
Are you interested in a tailor-made WRCS training for your organisation? Please contact Joanita de Pagter.
Watch the WRCS 2025 webinar on demand
Baker Tilly hosts an annual WRCS webinar. In a one-hour session, our specialists will update you on the latest WRCS developments and key areas of focus. During last year’s webinar, our specialists discussed:
Key changes and opportunities in 2025
Using the WRCS for vitality and development
Applying the WRCS to learning, development and sustainable employability
Practical tips to help you avoid tax risks
WRCS analysis
Do you need support with applying the WRCS? With a WRCS analysis, we determine exactly how much discretionary margin remains available and where potential tax risks may arise. This helps you avoid costly corrections and unexpected expenses. From this year onwards, we can carry out this analysis more quickly and efficiently, supported by a specially developed AI tool.
No time to delve into all the details? We are happy to take care of this for you, so you can focus on running your business.
After an exploratory discussion and an analysis of your administration, we prepare an advisory report for you. It includes concrete recommendations to improve the set-up of your WRCS. This report gives you insight into the opportunities and helps reduce the risk of unexpected tax assessments. In addition, our analysis provides practical guidelines to help you get started with the WRCS easily. This allows for ongoing optimisation, rather than corrections afterwards.
Getting started with the WRCS
Please note that the work-related expenses scheme consists of multiple rules and arrangements, each with its own conditions and specific features. In addition, the rules change frequently, ranging from new exemptions to the withdrawal of nil valuations and amended discretionary margin rates. It is therefore important to apply the rules carefully in order to minimise the risk of additional tax assessments.
Request the free replay link to the WRCS webinar (in Dutch), or contact Joanita de Pagter.
