& to whom does it apply?
RUT is a Swedish abbreviation that stands for Cleaning, Maintenance and Laundry. The term RUT deduction is used to describe the possibility of tax deduction for housework. Examples of services are cleaning, babysitting and gardening. Deductions are given only for labor costs.
You must be at least 18 years old the year you purchase the services
You must be subject to unrestricted tax liability during the tax year
From the first of July 2009, private individuals can get tax reduction through the invoice model. This means that you as a customer pay half of the labor cost to the company who performs the work. In order for you to be able to use the invoice model, it is required from the hired company to have an F-tax certificate. When the work is completed, the company requests the rest of the work compensation from the Swedish Tax Agency. The following year, you will find in your income tax declaration how much you have received in the preliminary tax reduction.
From 1 July 2019, the maximum ceiling was increased from SEK 25,000 to SEK 50,000 per person and year. The doubling applies for the entire tax year 2019. It is important to know that the ROT deduction (which includes construction services and renovation) affects the space in RUT, so if a ROT deduction has been made, the RUT deduction will be smaller. If you are unsure of how much deduction you have made during the year, you can always double-check it with the Swedish Tax Agency.
RUT deduction for private individuals
You always receive an invoice with two payment options, an amount with the tax deduction and a full amount. If you have space to use your RUT deduction, you can pay the lower amount, but if the space has already been used, you pay the total cost.
Family with children and RUT deductions
Let’s say you’re two adults in the household. Then you can buy household services for SEK 100,000 per adult, as a family it will be a total of SEK 200,000, with a tax reduction of half the amount. It is enough for five or six hours of cleaning each week and also provides a good margin to take the help of extra services such as window cleaning, garden help and repair of appliances.
Single household and RUT deduction
If you do not have someone to share the work with at home, then RUT services can be a solution for making everyday life easier. With your SEK 100,000, you can use three hours of cleaning every week, as well as bring in extra services such as moving, window cleaning, or laundry.
Pensioner and RUT deduction
If you have passed the age of 65, the regulations are the same. You have a buying space of SEK 100,000 per year and also an expanded range of services. For example, cooking, simple errands such as going to the health center, pharmacy or bank. If you are two pensioners, the deduction is doubled, provided that you pay enough in tax to be able to deduct the entire amount.