Friday, February 10, 2012

Upstairs - Downstairs Tax Breaks

The well-off could be given tax breaks for hiring cleaners and cooks to help with household chores, under a scheme to be considered by ministers. The idea would be modelled on a operating in Sweden and Finland. Specific services eligible for the tax breaks under the Swedish model include cooking, cleaning, gardening and child care.

Stina Honkamaa, Google’s executive manager in Sweden, told Mr Cameron: “It’s possible to buy help with housework, like cleaning, babysitting, gardening and so on, at a very reasonable tax rate. The actual cost is halved, which makes it easier to promote people to get help at home."

David Cameron is suggesting tax breaks for people who can afford domestic workers at the same time as he is cutting tax credits for working parents and removing child benefit from many families.

Is this what he means when he says we are all in it together?

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