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Minimum wage, VAT, child benefit, solos: serious changes will start on January 1, 2021

2020-12-27T05:50:21.710Z


From 2021 there will be some new rules and taxation. But not all of them are detrimental to consumers. All changes for the new year at a glance.


From 2021 there will be some new rules and taxation.

But not all of them are detrimental to consumers.

All changes for the new year at a glance.

  • In addition to the consequences of the

    corona pandemic

    , new rules will affect everyday life from 2021.

  • Many areas are affected by changes due to new laws: CO2 taxation, new price for ID cards, and a ban on single-use plastic.

  • An overview of the

    changes

    from January 1, 2021

    .

Berlin - At the turn of the year, some new resolutions come into force.

Families and pensioners can look forward to the fact that child benefit is increasing and the basic pension is being introduced.

Those who work in the home office are relieved and the minimum wage is raised.

On the other hand, the costs for motorists are increasing: the

price of petrol should

rise

by around 7 cents per liter

.

From January 1st, VAT will be back at 7 and 19 percent.

It had been lowered for half a year because of the corona pandemic.

Home office flat rate: 5 euros per day can be claimed

Those who work from home in the Corona crisis receive a tax bonus.

You can

claim

5 euros

per home office day,

but a maximum of 600 euros per year.

The lump sum is part of the advertising expenses.

Therefore, only those taxpayers benefit from it, who come above the already applicable advertising fee of 1000 euros.

Changes as of January 1st - CO2 price: Petrol will be 7 cents more expensive per liter

In order to make fossil energies more expensive and to promote climate-friendly alternatives, there will be a national CO2 price for transport and heating from 2021.

Selling companies such as refineries have to pay 25 euros to start with for every ton of CO2 that is produced when diesel and petrol, heating oil and natural gas are burned.

The price is passed on to customers; according to the federal government, the price per liter of gasoline rises by

7 cents

, for diesel and heating oil by 7.9 cents, and natural gas increases by 0.6 cents per kilowatt hour.

In return, citizens elsewhere should be relieved - for example, the green electricity surcharge, which citizens pay with the electricity price, is reduced from tax revenues.

CO2 component for housing benefit: heating costs are taken into account

So that people with low incomes are not burdened by CO2 pricing, there will be a so-called CO2 component of

housing benefit

from January

.

The expected additional costs for heating should be offset by a surcharge.

The amount depends on the size of the household and the income of the household.

Solos reduction: disappears for almost everyone

For almost all citizens, the

solidarity surcharge will

no

longer apply from January

.

The ten percent with the highest income should continue to pay.

Upskirting ban: Two years in prison

Secretly filming or taking photos under the skirt (upskirting) or in the clipping can be punished with up to two years in prison from the New Year.

The same applies to the distribution of such recordings.

Value added tax: Again 19 and 7 percent

As of January, the regular

VAT rate

of 19 percent on most goods and 7 percent on everyday goods will

apply again

.

The federal government had lowered the tax for half a year because of the corona pandemic so that people can continue to spend money and support the economy despite the uncertain time.

Changes as of January 1st - Basic security: Will be increased

The Hartz IV standard rates increase slightly.

A single adult will in future receive

446 euros a month

- 14 euros more than before.

The rate for young people between 14 and 17 years of age increases by 45 euros to 373 euros, and that for children up to five years of age by 33 to 283 euros.

For children between 6 and 13 years of age, 309 euros per month is a plus of one euro.

Basic pension: On average, 75 euros more

Around

1.3 million

with a small pension receive a premium.

Those who have at least 33 years of pension contributions from employment, child-rearing and caring activities benefit.

Your life's work should be recognized and the need to go to the welfare office should be saved.

There is an average surcharge of 75 euros.

The basic pension will officially start on January 1st, but payment will probably be delayed by several months due to the high administrative burden and will then be made retrospectively.

🎄🌟 Merry Christmas & a Happy New Year from the BMAS!


The #Basic pension is coming in 2021 & shows:


Social progress is possible & there is every reason to start the new year with confidence.


With the basic pension, around 1.3 million pensioners * receive a supplement to their #pension.

pic.twitter.com/di6w3MhRNn

- BMAS (@BMAS_Bund) December 23, 2020

Changes as of January 1st - Minimum wage: Will be increased

The statutory minimum wage will rise on January 1st from currently 9.35 euros per hour to

9.50 euros

.

Child benefit and allowance: increases by 15 euros

From January the state subsidy for the first and second child will increase from 204 to

219 euros

per month, for the third child from 210 to 225 euros and from the fourth child from 235 to 250 euros.

The tax-free child allowance will also be increased by more than EUR 500 to EUR 8388.

There is also an increase in the child allowance, a benefit in addition to child benefit for families with low incomes.

The maximum amount for child allowance will be increased from 185 to

205 euros

per month.

Vehicle tax: on average around 15.80 euros more expensive

The vehicle tax increases for new cars with high fuel consumption.

This should encourage citizens to buy more economical cars.

Cars that have already been registered are not affected.

According to a study, it will be an average of

15.80 euros more expensive

per year

- but for many cars nothing will change.

Disposable plastic ban: Styrofoam also affected

From July 3, 2021, it will be an administrative offense in the whole of the EU to sell certain items made of single-use plastic - namely cutlery and plates, drinking straws, cotton swabs, balloon holders, stirring sticks for coffee, and

styrofoam

cups

and containers for take-away food.

Income tax: higher basic allowance

For all taxpayers, the

basic

tax-free

allowance

on which no tax has to be paid increases.

In 2021 it will be 9744 euros instead of the previous 9408 euros.

The limit from which the 42 percent top tax rate is due rises slightly to an annual income of 57,919 euros.

In addition, single parents are allowed to deduct higher maintenance payments from taxes.

Changes from January 1st - tax breaks for people with disabilities:

From 2021,

people with disabilities

can claim higher lump sums on their tax returns.

With these lump sums, you can save yourself the time and expense of documenting travel costs individually.

Specifically, for a degree of disability of 50, a flat rate of 1140 euros will apply in the future, for a degree of 100 it is 2840 euros.

Electronic patient record: transparency for the doctor

From January 1st, all insured

persons will be offered

electronic patient files

for voluntary use.

For example, you should be able to save findings, x-rays and medication plans.

When it comes to data protection, a somewhat “slimmed-down” version is planned for the start.

Patients can determine which data is included and which doctor can see them.

More precise access, depending on the doctor, only for individual documents will not come until 2022.

Brokerage costs: From January onwards it will be shared

Anyone who buys a property will only have to

pay a maximum of half the brokerage

costs in

the future

.

Up to now, the buyer has usually completely assumed the broker's commission of up to seven percent of the purchase price.

From December 23rd, the buyer does not have to transfer his share until the seller has proven his payment.

Identity card: A new one will cost 37 euros from 2021

For a new identity card, instead of 28.80 euros,

37.00 euros are due

from the beginning of the year

- at least for citizens who are at least 24 years old.

You do not need a new ID card for ten years.

Younger applicants whose ID is only valid for six years are charged EUR 22.80.

Changes as of January 1st - Life insurance: Better comparable

Consumers

will be able to compare

life insurance policies

better in the future.

Insurance companies must state the so-called effective costs from January according to uniform criteria.

This makes it easier for customers to see how the cost of a contract affects the life insurance payout.

Assessment ceiling: will be increased

In the West, contributions to statutory pension and unemployment insurance are payable up to a monthly income of 7100 euros (previously 6900 euros), in Eastern Germany up to 6700 euros (previously 6450 euros).

The

assessment ceiling

for statutory health and long-term care insurance increases at the beginning of the year to a nationally

standardized amount of EUR 4837.50 per

month.

So far it was 4687.50 euros.

Meat industry: no more temporary work

Work contracts for the mainly Eastern European workers in slaughterhouses are prohibited from January 1st.

There

should also be no longer any

temporary work

for slaughtering and cutting.

Ultrasound: off for "baby cinema"

Medically unnecessary

“baby cinema” or “baby television”

,

i.e.

ultrasound for unborn babies in the womb, will be banned from 2021.

Babies should be protected from unnecessary influences.

(dpa)

Source: merkur

All life articles on 2020-12-27

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