Thousands of employees across Ireland who are working from home as a result of the coronavirus crisis may be entitled to avail of Revenue’s e-worker relief. This is a tax relief on expenses that workers may incur while working from home. Such expenses would include electricity, heating and broadband.
An employer can pay employees a tax free sum of €3.20 per day to cover these expenses and other additional costs associated with working from home. However, there is no legal obligation on an employer to make this payment. If an employer does not pay the daily costs, fortunately an employee is still entitled to claim tax relief on the expenses. When applying for the relief, all claims need to be supported with evidence in the form of receipts, and a letter from your employer confirming you work from home and that you have not been reimbursed for these expenses. A record of both business and private use of the household utilities should be kept as the rebate claimed will be based on a portion of your overall expenses and as a percentage of the amount of time spent working from home.
Please bear in mind that if your employer does pay the payment of €3.20 and your costs exceed this, you can still reclaim tax on the difference.
In order to avail of the tax credit, an employee must be working for substantial amounts of time outside their normal place of work. This would comprise of working from home on either a full time or part time basis, or even splitting your working week between your home and office. Please note that the relief cannot be claimed by those working outside of normal working hours.
For further information on e-working please visit www.revenue.ie
Should you have any queries or require any further information, please do not hesitate to contact us on 071 91 62211 or firstname.lastname@example.org