COVID-19 has resulted in changes to the work practices of many organisations. These changes may be long lasting, so it is important to be aware of the tax reliefs available for people working remotely.
e-working includes:
• working at home either on a full or part-time basis, or;
• working some of the time at home and the remainder in the office.
The update to the e-working guidelines clarifies that where the government recommends that employers allow employees to work from home to support national public health objectives, as in the case of COVID-19, the employer may pay the employee up to €3.20 per day (without deduction of taxes) to cover the additional costs of working from home (such as increased heating and electricity costs), provided certain basic conditions are met.
If the employer does not make this payment, the employee may be able to make their own claim for reimbursement of additional expenses. The employee may not make a claim for the round sum of €3.20 per day, but instead may be able to make a claim in respect of vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment.
Method of claiming e-working expenses by employees
e-Working expenses can be claimed by completing an income tax return, which an employee can complete from the Revenue website.
The expense amount is added to the employee’s tax credits, so provided sufficient tax was paid by the employee, a refund of the amount of the credit would be issued.
All documentation relating to a claim should be retained by the employee for a period of six years from the end of the tax year to which the claim relates.
Please contact our Tax Department should you require any advice or assistance.