Remote working is defined as where you are required to work:
- at home on a full-time or part-time basis or
- part of the time at home and the remainder in your normal place of work.
Remote working involves:
- working for substantial periods outside your normal place of work
- logging onto a work computer remotely
- sending and receiving email, data or files remotely
- developing ideas, products and services remotely.
The above do not apply when you bring work home outside of normal working hours.
Applying for relief
Relief can be claimed by either of the following two methods:
- Allowance paid to you by your employer
If you are a remote worker, your employer may pay you up to €3.20 per day without deducting:
- Pay As You Earn (PAYE)
- Pay Related Social Insurance (PRSI)
- Universal Social Charge (USC).
This is to cover the additional costs of working from home, such as electricity and heat.
2. Completing an Income Tax return
If your employer does not make payment of €3.20 or pays you less than your allowable costs, you can claim Remote Working Relief by completing an Income Tax return at the end of the year. If you are a PAYE worker this is done using your Revenue My Account profile (Tax Credits & Reliefs / Your Job), for self-employed tax payers it’s done by entering the details in your Form 11 Income Tax return (PAYE/BIK/Pensions 2).
What you can claim for
10% of the cost of electricity and heat incurred (apportioned based on the number of days worked at home over the year)
30% of the cost of broadband incurred, apportioned based on the number of days worked at home over the year. This concession, commencing in the tax year 2020, will apply for the duration of the pandemic.
Note
You cannot claim broadband expenses for years 2017 to 2019.
Capital items such as laptops, computers, office equipment and office furniture purchased by you are not allowable costs.
How to calculate allowable remote working costs
You can only claim for the days you worked from home as a remote worker, you cannot include:
- weekends or public holidays you did not have to work on
- days you took as annual leave
- days that you brought work home outside of normal working hours.
Cost shared by more than one person
If the cost is shared between two or more people, it can be apportioned based on the amount each paid.
Calculation for 2020 and subsequent years
The Income Tax Return will automatically calculate the relief when relevant information is entered for 2020 and subsequent years.
Relief is calculated as follows
To calculate your electricity and heat remote working costs:
- multiply your allowable utility bills by the number of remote working days
- divided by 365 (when calculating relief for 2020 divide by 366)
- multiply by 10% (0.1).
To calculate your broadband remote working cost:
- multiply your bill by the number of remote working days
- divided by 365 (when calculating relief for 2020 divide by 366)
- multiply by 30% (0.3).
Remote Working Relief claim for 2021
To claim for 2021 you must upload receipts and images of bills paid in 2021 using Revenue Receipts Tracker App (RRTA) or Receipts tracker myAccount. The receipt image must be clear, readable and show that you paid the bill amount claimed.