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 are required to work:

  • at home on a full-time 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

Calculation for 2020 and subsequent years.

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 (2020 and subsequent years):

  • 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.

Note

When calculating relief for 2020 divide by 366 days. The Income Tax Return will calculate the relief when relevant information is entered for 2020 and subsequent years.

Calculation for 2017 to 2019

To calculate your electricity and heat eWorking costs:

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

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

How to claim

Remote Working Relief claim for 2021

To claim for 2021 you 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.

Remote Working Relief claim for 2020

You can upload receipt and bills paid in 2020 using RRTA or Receipts tracker myAccount. Amounts of bills paid and uploaded by you will be available in your 2020 Income Tax return.

You must complete your 2020 Income Tax Return in order to claim the relief. You will need to sign into myAccount.

  • On the 'PAYE Services' card Select 'review your tax' 2017-2020
  •  Select the 2020 Income Tax Year
  •  Select submit
  • In 'Tax Credits and Reliefs' select 'Your Job' tab
  •  Select 'Remote Working Relief'
  •  Confirm whether you received a daily tax-free amount of up to €3.20 per day from your employer in 2020
  •  If yes, enter the total tax-free amount received from your employer in 2020
  • Enter total amount of electricity and heat bills paid by you in 2020
  •  Enter total amount of broadband bill paid by your in 2020
  •  Enter total amount of days you worked from home in 2020
  • Click Add, the Remote Working Relief will be automatically calculated
  • You must then confirm all the tax credits and reliefs claimed.

Your must upload clear, readable and relevant receipt images that show you paid the bill amount claimed. If you do not you must retain the originals for a period of six years.

Remote Working Relief for 2017 to 2019

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.