04-06-2020 - Admin - 0 comments

Anyone working from home (e-worker) during the Covid-19 pandemic could be entitled to a tax relief on light, heat, telephone and internet usage.

E-working involves:

  • Working for substantial periods at home
  • Logging onto a work computer remotely
  • Sending and receiving email, data or files remotely, and
  • Developing ideas, products and services remotely.

To qualify as an e-worker, you must:

  • Have a formal agreement with your employer that you are required to work from home, and
  • Be required to perform essential duties of employment at home.

You are not entitled to claim tax relief if you bring work home from the office outside of normal working hours, for example in the evenings or at weekends.

How much are you entitled to? If your employer pays you an allowance towards these expenses, you can get up to €3.20 per day without paying any tax, PRSI or USC on it. If your employer pays more than €3.20 per day to cover expenses, you pay tax, PRSI and USC as normal on the amount above €3.20.

Employers are not legally obliged to pay you this money -If your employer does not pay you an allowance for your expenses, you can make a claim for tax relief at the end of the year. You will get money back from the taxes you paid.

Your refund of tax is based on:

  • How many days you worked from home
  • The cost of the expenses, and
  • Revenue's agreed rate for calculating the cost of running a home office.

Revenue's rate for the cost of running a home office is 10% of the total cost. This means that you can claim 10% of the total amount of allowable utility bills against your taxes. This is only available for the days that you work from home. This does not include times you may have brought work home to do outside your normal working hours."

You can claim tax relief online using Revenue's  myAccount service. You can also access the myAccount service on mobile and tablet devices using Revenue's RevApp.

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