Conditions for using the simplified scheme

A number of conditions must be met in order for you to use the simplified scheme.

Work on or in connection with your home or holiday home

The assignment must concern private work on or in connection with your home or holiday home. The scheme does not cover work at construction sites before you move in, even if the building will become your home in the future. Improvements after you move in will be accepted as work on the home. The same applies to the construction of garages. Examples of the type of work covered by the scheme are cleaning, gardening, snow clearance and work on buildings, gardens, vehicles and movable property. In principle, the work must be carried out at the home. When it is more practicable for the private worker to carry out the work at his or her home, the object can nevertheless be considered part of your home.

The employer as a private individual

The person who hires the worker must do so as a private individual and not as a self-employed person. Even if you run a business on a daily basis, you can use the simplified scheme when the employment concerns work on your home. This will then be considered as a private relationship without any link to the business. The salary expenses will not give entitlement to an income deduction with regard to commercial activity. If the salary is deductible for the employer, it will not be covered by the scheme.

The client cannot run a business in the same industry

The person you hire must be able to take on the assignment as a worker. In other words, they cannot run a business within the field that the task concerns. The simplified scheme also does not apply if you hire a company with a number of workers. It is your responsibility to check whether the worker is a registered company or self-employed. The tax office will be able to tell you whether the person concerned in registered for VAT.

The agreement must be entered into between private individuals

The assignment must be agreed between private individuals. No agreement may be reached via the employer of the person who is to perform the work. If a company reaches an agreement for their employee to take on the company's assignment as a private job in the client's home, this will be seen as an attempt at disloyal avoidance of the tax rules. The tax authorities can put such arrangements aside. For example, a contractor cannot permit its workers to take on part of a contract privately in order to save on employer's national insurance contributions and value added tax.

Up to NOK 60,000 in salary and holiday pay

The total salary payments must not exceed NOK 60,000 per year. Salary paid in cash, holiday pay, sickness benefit and the value of any free board and lodging which the worker has received, must be included.

The threshold applies collectively to the entire household. The number of members in the household is not important. In any one year, only one person in a household can act as employer for work carried out on the home. You can therefore not calculate NOK 60,000 from you and NOK 60,000 from your spouse or cohabiting partner as well. In multi-generation dwellings, the limit applies to each of the households if they have their own household.

You can find out more about salary for the private minding of children under 12 years of age and the minding of older children with special care needs in the brochure entitled "Tax rules for childminding for parents, childminders and nannies/au pairs".

Not when supplementary benefits are given

The simplified scheme can be used when the worker receives food and accommodation in connection with the performance of the work. In such cases, the value of free board and lodging must be calculated together with the cash salary.

You cannot use the simplified scheme if you have covered the worker's expenses through cash payments other than in the form of salary, e.g. through a car allowance, or you have made payments in kind in the form of anything other than food and accommodation (board and lodging). You must then follow the settlement for ordinary employers. The exemption from employer's national insurance contributions will still apply if the total of the salary, expense allowances and payments in kind does not exceed NOK 60,000.