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If you’ve been working remotely, you may wonder how to claim home office expenses to help cover your household costs. From electricity to broadband, remote working can come with additional out-of-pocket spending. Many people are unaware of the tax reliefs available to them. This is where professional taxation services can help you claim correctly and efficiently. Some people work remotely full-time, while others split their time. In both cases, understanding your entitlements is essential.
What Can Be Claimed as a Home Office Expense?
When figuring out how to claim home office expenses, it’s important to know what qualifies. Eligible expenses typically include:
– Electricity and heating
– Broadband services
It’s important to note that equipment provided by your employer, such as computers, printers, and office furniture, is not considered a taxable benefit. This applies as long as the equipment is used mainly for work purposes. So, you cannot claim additional relief for these items.
How to Claim Utilities When Working from Home
You can claim a portion of your utility bills (heating, electricity, broadband) based on days worked at home. Keep detailed records and ensure it’s not already covered by employer payments.
Understanding How to Claim Home Office Expenses
When claiming remote working relief, it’s essential to know that only a portion of your utility costs is eligible. You’ll calculate this based on the number of days worked from home.
For example, if you worked from home 200 days in a year and your annual electricity bill is €1,200, you may claim a percentage of the cost based on business use. You can attribute 30% of the cost of electricity, heating, and broadband services to remote working. This is based on the number of days you worked from home over the year.
How to Claim Remote Working Allowance from Revenue
Employees eligible for remote working relief can apply directly through Revenue’s myAccount portal. If you’re wondering “how do I claim WFH allowance,” simply follow these steps:
- Sign in to Revenue’s myAccount. Log in using your credentials on the Revenue website.
- In the ‘PAYE Services’ section, click on ‘Review your tax for the previous 4 years’.
- Choose the tax year you want to claim the relief for.
- Click to request the Preliminary End of Year Statement for the selected year.
- Once you have the statement, click on ‘Complete your Income Tax Return’.
- In the ‘Tax Credits and Reliefs’ section, go to the ‘Your Job’ tab and select ‘Remote Working Relief’.
- In the ‘Amount Claimed’ section, enter the amount of eligible expenses based on your business use. You can also supply receipts to support your claim.
- Submit your Income Tax Return. Review your entries and submit the return to complete your claim.
Once you’ve filed for your tax back, you can expect to receive your refund within 3-5 working days.
Important Notes on Remote Working Relief
- Employer Payments: If your employer provides a daily payment for remote working (up to €3.20 per day), these amounts will be deducted from your claim.
- Eligible Expenses: You can claim expenses like electricity, heating, and broadband services, but only for the portion of time that your home office was used for business.
For more detailed guidance, visit Revenue’s eWorking page.
How to Calculate WFH Expenses Correctly
You’ll need to understand how to calculate for working from home to see what you you’re eligible to claim. To support your claim, it’s essential to keep all receipts and utility statements in case of a review.
Citizens Information has provided a helpful guide on how to calculate your eligible costs. Here’s the general approach:
- Add your electricity, heating, and internet costs together.
- Multiply the total costs by the number of days you worked from home.
- Divide the result by 365 (or 366 in a leap year).
- Multiply by 30% (0.3) to get the portion of your costs eligible for tax relief.
Get Expert Help with Your Taxes
Understanding how to claim home office expenses might seem straightforward, but it’s easy to overlook key details. As a trusted provider of taxation services, we aim to help you stay informed about the latest tax relief options.
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