Tax relief for working from home: who qualifies and how to enforce home bills

The 2022 budget has increased the amount people can claim for bills if they work from home.

It is now possible to claim up to 30% tax relief on bills such as electric heating and broadband.

People who work from home part-time or full-time can benefit from this tax relief.

If you take work home from the office to work in the evenings and weekends, you are not eligible for this tax relief.

How do you apply for bills and who can apply? And how do you know if you are an E-worker?

What is an electronic worker?

An E-worker is a person who works from home full-time or part-time. To qualify as an e-worker, you must:

  • have a formal agreement with your employer that you are required to work from home.
  • be required to perform the essential functions of work at home.

E-working is defined as:

  • work for long periods at home
  • log into a work computer remotely
  • send and receive emails, data and files remotely
  • develop remote ideas, products and services

How much can you expect?

An employer can choose to pay an employee a work from home allowance of up to € 3.20 per day, without paying any tax, PRSI or USC on it.

If the employer pays more than € 3.20, the employees will pay tax on the amount exceeding € 3.20. If the employer does not pay any work-from-home allowance, workers can apply for tax relief at the end of the year.

This refund will be based on three factors. They are:

  • How many days have you worked from home
  • The cost of expenses
  • Agreed rate of revenue for calculating the cost of running a home office
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What is the revenue rate for the cost of running a home office?

The revenue rate is 10% of the cost of electricity and heating, which means e-workers can claim up to 10% of the total amount of their allowable bills against taxes.

E-workers can charge 30% for the cost of broadband.

How to apply for tax relief

E-workers can apply for tax relief using Revenue’s MyAccount online service. Use the receipt tracker to upload various invoices and receipts.

The tax return can be completed in four simple steps.

  • Log in to MyAccount
  • Click on “review my taxes” in PAYE services
  • Select the tax return for the relevant tax year
  • On the “credits and tax breaks” page, select the “your work” tab. Then, select “remote business expenses” and type the amount of the expense in the “Amount collected” section

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