AWAY MAGAZINE

European Global Mobility Challenges 2010 Survey Report

At the beginning of 2010, Interdean commissioned a survey on the challenges facing organisations operating international relocation programmes out of Europe.

The first of its kind, the survey was completed by 137 companies with relocation programmes managed out of Europe. The report provides insight into their priorities, identifying trends across the European region and a breakdown by member states and zones. The report also provides a comparison of the priorities of large relocation programmes against those of smaller volume relocation programmes.

Top 5 Priorities for the European relocation programmes
It will come as no surprise to you to learn that cost control topped the list of priorities for the majority of companies involved.

In fact, across the companies questioned in the survey, 82% of all respondents defined controlling costs as a high priority for their organisations for 2010, and it’s interesting to note that it was controlling costs that was a priority rather than cutting costs. A key challenge identified by the HR and Mobility professionals that responded, related to managing costs against fluctuations in currencies, housing prices and rental costs.

Regional Variations Defy Cultural Stereotypes
Priorities between different regions within Europe varied more considerably than expected with the results making interesting reading.

Large Vs Small Relocation Programmes
Amongst the findings, businesses operating larger volume relocation programmes were more focused on issues relating to refining and improving the performance of their relocation programmes, whilst smaller relocators were more likely to prioritise cost control measures.

Read the full report:
http://www.interdean.com/PanEuropean_Mobility_Challenges_2010_Survey_Report/index.html

Interdean provides world-class international relocation services to a customer base of blue-chip clients and their employees on a global basis. Established in 35 countries with 47 offices throughout Europe, Interdean’s dedicated team of professionals provides a highly personalised service, managing every aspect of the relocation process.
For further information: relocation@interdean.com, http://www.interdean.com

Whether you own your own home or rent property, you have certain

responsibilities when it comes to looking after both the building and the contents,

explains Marc Quaghebeur.

If you are renting, the obligation is usually set out in the rental agreement, so you should show it to your insurance broker.

That policy often includes home contents insurance, but beware the ‘proportionality rule’. If you insure your possessions for half their value, the insurance company will only pay for half the damage or loss. Make sure that the policy covers the actual value of the contents and check the ‘deductible’, which is the amount you have to pay before the policy kicks in.

A separate ‘all risks’ insurance policy gives a wider cover and usually does not have a deductible. This covers accidental loss of or damage to valuables that are not kept at home.

Insurance for the family is advisable, too. It covers damage caused to third parties by family members and pets, or accidents in the home. This insurance is not compulsory unless you employ domestic help.

Help at home

Now, we have all heard the stories about Polish cleaners working on the black. That may be tempting, but it is risky. Employing someone without a visa or a work permit is forbidden. And if he or she slips in your house they may well sue you if you do not have insurance cover.

More importantly, as an employer you have an obligation to pay social security and tax. It is not only your helper who is taking risks. However, there are legal ways to get help at home with little administrative hassle.

This concerns the ‘titre-service’ or service vouchers scheme. You can buy the voucher for €7.50 and the government tops up the salary and pays the social security contributions. Consequently, your helper will be paid about €9.50 plus a small travel allowance, with social security and tax paid. The most important aspect for him or her is that they will also gain social security benefits: healthcare, pension rights, unemployment benefit, etc.

A ‘white’ cleaner is not only safer, but cheaper, too. Every year, Sodexo will send you a certificate to be filed with your tax return. This gives you a tax credit of 30% of the purchase value of the vouchers, up to a maximum of €2,510. That means that the first 334 vouchers will only cost €5.25 instead of €7.50. And if you do not pay any tax, you can claim back the tax credit on your tax return.

For a couple, this could number around 668 vouchers per year or 13 hours per week. If you need more time, you can also pay with vouchers but at the full cost of €7.50. This is still less than what you would pay on the black, as the going rate is about €8, so everyone wins!

At you service

Before you can buy cheques, you must register with Sodexo (+32 (0)2 547 54 95 or www.dienstencheques.be). They will give you a user number, but there is no registration fee. You can then order vouchers, but not too many because they are only valid for eight months, and you are limited to 750 vouchers per adult per year. For each hour’s work you give your helper one signed voucher.

The website gives a good explanation plus a list of the companies registered. You can find your household help on the site, or you may want to convince your cleaner to register with one of the firms listed there. That company then becomes the cleaner’s official employer and takes on the payroll administration.

At the moment, service vouchers can only be used for household help: cleaning, laundry, ironing, cooking and some sewing. Shopping or driving elderly people is allowed but only within the family. Activities which are not permitted include cleaning your office at home, wallpapering or painting, gardening and childcare.

Some employers have started to organise household help for their employees. They will hire a gardener or a cleaner who comes to your house to do your household jobs. The cleaner is on the payroll. For the employee it is a tax efficient fringe benefit. For a full-time helper or gardener, €5,950 is added to your income. If the cleaner comes one day a week, the fringe benefit is around €1,200 a year, while the tax and social security is about €700 annually.

If you have your own company, this might be an idea to explore. The cost is tax deductible for the company, and you pay very little tax – less than what it would cost you in service vouchers.

Marc Quaghebeur is a Belgian tax lawyer specialised in international taxation and estate planning.