Working Remotely in Ireland? Here's What Tax Reliefs You Can Claim

It’s no exaggeration to say the way we work has changed forever. Before the Covid-19 pandemic, working from home seemed unlikely for most. But today, remote work (or e-working) is a part of daily life for many people across Ireland.

With this shift in how we work comes an important question:
What tax reliefs can you claim if you're working from home?

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This guide breaks it all down for you - from daily expenses to claiming back money at the end of the year.

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What Remote Working Expenses Can You Claim?

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If you’re working from home, you may be able to claim tax relief on everyday expenses like:

• Electricity

• Heating

• Broadband

• Phone/internet usage

How much you can claim depends on whether your employer is already giving you any money to cover these costs.

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If Your Employer Pays You a Daily Allowance

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Your employer can give you up to €3.20 per day tax-free to cover remote work expenses. That means:

• No Income Tax

• No PRSI

• No USC on this allowance

If your employer pays more than €3.20/day, you will pay tax, PRSI and USC on the extra amount only.

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If Your Employer Pays You Nothing

If you don’t receive a work-from-home allowance, you can still claim tax relief directly from Revenue at the end of the year.

To calculate your refund, Revenue considers:

• Number of days you worked remotely

• Total cost of eligible expenses

• Standard rates for home office costs

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Revenue’s Standard Rates for Home Office Claims

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Under current rules, you can claim:

• 10% of your electricity and heating costs
  (but only for the days you worked from home)

• 30% of your broadband costs
  (applies to 2020 only, due to COVID-19)

You cannot claim for days you worked in the office and just brought work home later.

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Example: How Much Could You Get Back?

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Let’s say you worked from home for 6 months. In that time:

• You spent €1,000 on electricity and heating

• You spent €300 on broadband

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Your claim would look like this:

• 10% of €1,000 = €100

• 30% of €300 = €90

• Total eligible relief: €190

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How much you get back depends on your income tax rate:

• At 20% tax, you’d get €38

• At 40% tax, you’d get €76

It’s not a fortune, but it’s money back in your pocket for the cost of working from home.

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Need Help Calculating Your Remote Work Tax Relief?

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If you're unsure about what you can claim or how to apply for it, our team of Dublin-based accountants can help. Whether you're a full-time remote worker or just worked from home part of the year, we’ll make sure you get the relief you're entitled to.