Remotely working from home (eWorking)

Note

The arrangements on this page only apply to eWorking. They do not apply when you bring work home outside of normal working hours

What is eWorking?

eWorking is where you work:

  • at home on a full- or part-time basis
  • part of the time at home and the remainder in your normal place of work.

eWorking 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.

Tax relief given through your employer

If you are an eWorker, your employer may pay you up to €3.20 per day without deducting:

This is to cover the additional costs of working from home, such as electricity, heat and broadband.

Your additional costs might be higher than €3.20. Your employer may pay these higher costs. Any amount more than €3.20 per day paid by your employer will be taxed.

Tax relief claimed by you

If your employer does not make this payment you can claim for allowable costs, these are:

  • 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

Capital items such as laptops, computers, office equipment and office furniture purchased by you are not allowable costs.

How to calculate eWorking costs

To calculate your electricity and heat eWorking costs:

  • multiply your allowable utility bills by the number of eWorking days
  • divided by 365
  • multiply by 10% (0.1).

To calculate your broadband eWorking cost:

  • multiply your bill by the number of eWorking days
  • divided by 365
  • multiply by 30% (0.3).

If the cost is shared between two or more people, it can be apportioned based on the amount each paid.

How to claim

Complete an Income Tax return at the end of the year, sign into myAccount:

  • click on ‘Review your tax’ link in PAYE Services
  • select the Income Tax return for the relevant tax year
  • in ‘Tax Credits & Reliefs’, select ‘Other PAYE Expenses’
  • insert the amount of eWorking expense in Amount Claimed.

To make a claim you must have incurred the expense.

It is your responsibility to retain proof of payment. Please retain all documentation relating to a claim for six years.

Provision by employer of computers and additional equipment

Your employer may provide any of the following for business use:

  • computer or laptop
  • printer
  • scanner
  • software to allow you to work from home
  • telephone, mobile and broadband
  • office furniture.

This is not a Benefit-in-Kind where your private use is minimal.

Capital Gains Tax (CGT)

You might use part of your home for eWorking. This will not affect your Principal Private Residence Relief claim for full exemption from CGT.

Local Property Tax (LPT)

You will not receive a reduction on LPT due if you use a room in your home to carry out work-related activities.