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Remotely working from home

  1. Overview
  2. Allowance paid to you by your employer
  3. What costs can you claim for?
  4. How to calculate allowable remote working costs
  5. How to claim Remote Working Relief
  6. Provision by employer of computers and additional equipment
  7. Capital Gains Tax (CGT) and Local Property Tax (LPT)

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 when you did not have to work
  • 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 2022 and subsequent years

Your relief is calculated using the formula ((A x B) ÷ C - D) x 30%, where:

  • (A) is your allowable utility bills for electricity, heating and broadband.
  • (B) is your number of remote working days.
  • (C) is the number of days in the relevant year of assessment.
  • (D) is any remote working allowance reimbursed by your employer.

The relief is given at your highest rate of tax.

  • Example 1

    In 2022, Jane worked from home for 50 days. The cost of her electricity, heating and broadband for 2022 was €1,890. Jane does not receive an allowance for remote working from her employer.

    Calculation of  the specified amount for remote working relief

     Description

    		 CalculationAmount

    (A) is the allowable utility bills paid

     

    €1,890

    (A) is multiplied by (B) - the number of remote working days

    €1890 x 50

    €94,500

    Divided by (C) - the number of days in the year

    €94,500 / 365

    €258.90

    Deduct (D) - the amount reimbursed by your employer

     0

    €258.90
    Allowable cost (30%) €258.90 X 0.3 €77.67

    Jane pays tax at the higher rate (40%), therefore she will receive €31.07 as tax relief.

    From 2022 onwards, to support your claim you need to upload receipts and images of your utility bills. You can upload receipts and images of utility bills paid using the Receipts tracker in myAccount.

  • Example 2

    In 2024, Rob and Mark worked from home in their shared house. They both worked remotely for 181 days. The cost for their electricity and heating for 2024 was €1,200. Their broadband costs were €360. Neither Rob nor Mark received an allowance for remote working from their employer.

    They split the bills equally between them, and each calculate the portion they can claim.

    Calculation of one portion of remote working costs
    DescriptionCalculationAmount

    Amount paid each

    €780

    Multiple by number of remote working days

    €780 x 181

    €141,180

    Divided by 365

    €141,180 / 365

    €386.79

    Allowable cost (30%)

    €386.79 x 0.3

    €116.03

    At the end of the year, Rob and Mark will each complete their own Income Tax Return for 2024. They will each make a claim for costs of €116.03 for remote working relief.

    Rob and Mark both pay tax at the higher tax rate (40%) and will receive €46.41 as tax relief.

Calculation for 2021

To calculate your electricity and heating remote working costs:

  1. Multiply your allowable utility bills by the number of remote working days
  2. Divide by 365
  3. Multiply by 10% (0.1). 

To calculate your broadband remote working costs:

  1. Multiply your bill by the number of remote working days
  2. Divide by 365
  3. Multiply by 30% (0.3).

Note

The Income Tax Return will calculate the relief when relevant information is entered

  • Example 3

    In 2021, Dave worked remotely for 45 days. His costs for electricitty and heating for 2021 was €1,100. His broadband cost was €540. 

    Calculation of electricity and heating remote working costs
     Description  Calculation  Amount
     Amount paid    €1,100
     Multiply by number of remote working days  €1,100 x 45  €49,500
     Divided by 365  €49,500/365  €135.61
     Allowable cost (10%)   €135.61 x 0.1

     €13.56 

    Calculation of broadband remote working costs
     Description  Calculation  Amount
     Amount paid    €540
     Multiply by number of remote working days  €540 x 45  €24,300
     Divided by 365  €24,300/365  €66.57
     Allowable cost (30%)  €66.57 x 0.3  €19.97
    Dave makes a claim for tax relief based on remote working costs of €33.53 (€13.56 + €19.97) by submitting an Income Tax Return for 2021. As he pays tax at the higher rate (40%), he receives tax relief of €13.41. 

Next: How to claim Remote Working Relief

Published: 18 February 2025 Print this page

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