Remote Working Relief 2022
The remote working relief is a tax deduction for employees working from home. If you are working from home part time on a hybrid basis or full-time and have an arrangement with your employer to-do so, you may be entitled to remote working relief. You can claim this tax relief at the end of the year. You will get money back from the taxes you paid. If you share your bills with someone else, the cost is divided between you, based on the amount paid by each person.
The amount of costs you can claim is based on:
· How many days you worked from home
· The cost of your expenses
· The percentage of your costs that Revenue counts as working from home expenses
You can claim relief on costs at the following rates:
· For 2022, 30% for electricity, heating, and internet costs
· For 2020 and 2021, 30% for internet costs and 10% for electricity and heating costs
· For 2018 and 2019, 10% for electricity and heating costs only
You can only claim for the days that you work from home. This does not include times you may have brought work home to do outside your normal working hours.
You need to keep a record of your internet and electricity bills every month. You can upload your receipts to revenue.ie’s website via their receipt tracker.
Your employer can pay you up to €3.20 per day you work at home which is exempt from being taxed. An employer can pay you more than €3.20 a day to help cover the costs of your heating and electricity but anything over €3.20 will be taxed.
In regard to receiving equipment from your workplace. If an employer gives you equipment for work such as computers, monitors, desks or even software in order to carry out your job, this is not considered a benefit in kind, so you do not need to pay tax for getting this equipment from your workplace.
If you need more assistance on tax related queries or business advisory for your company, contact Cronin and Co today.