This article explores the rise in popularity of remote working relief in Ireland, offering guidance on who can claim, how to claim, and the potential tax savings. It delves into the complexities of the calculation process and highlights the difference between claiming through an employer and directly from Revenue.
Remote working relief has surged in popularity, becoming the third most commonly claimed tax relief in Ireland . This rise coincides with the shift towards hybrid working models, where employees split their time between the office and home. While many employers have encouraged a return to the office, the reality is that most non-customer-facing roles operate on a hybrid basis. This means employees are increasingly responsible for home-related work expenses like heating, light, and broadband.
Revenue Commissioners data shows that remote-working relief is now a top concern for Irish taxpayers, alongside health expenses and rent tax credits. However, the specifics of who can claim and how remain a source of confusion. There are two main ways to claim the relief: through your employer or directly from Revenue. If your employer offers a tax-free daily allowance of €3.20 to cover work-from-home costs, you can claim that directly. However, many employers don't offer this, leaving employees to claim directly from Revenue. When claiming directly from Revenue, you can deduct 30% of your electricity, heat, and broadband bills for days you work from home. However, the calculation can be complex, involving multiplying your annual bill by the number of work-from-home days, dividing by the total days in a year, and finally multiplying by 0.3. It's important to note that you cannot claim for the initial setup costs of your home office, such as furniture or equipment. However, if your employer provides these items for work use, they won't be considered a benefit in kind. The amount of tax relief you receive depends on your tax rate. Higher-rate taxpayers will receive a greater refund than those paying the standard rate.
REMOTE WORKING RELIEF TAX BREAKS HYBRID WORKING IRELAND REVENUE COMMISSIONERS TAX RELIEF CLAIMING
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