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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
  • and
  • 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.

Calculation for 2020 and 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 (when calculating relief for 2020 divide by 366).
  3. Multiply by 10% (0.1).

To calculate your broadband remote working cost:

  1. Multiply your bill by the number of remote working days.
  2. Divide by 365 (when calculating relief for 2020 divide by 366).
  3. Multiply by 30% (0.3).

Note

The Income Tax Return will calculate the relief when relevant information is entered for 2020 and subsequent years.

  • Example 2

    In 2020, Rob and Mark have been working at home in their shared house, while their offices were closed due to the COVID-19 pandemic. Since April, they both worked remotely for 181 days. The cost for their electricity and heating for 2020 was €1,200. Their broadband cost €359.88.

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

    Calculation of one portion of electricity and heating remote working costs
    DescriptionCalculationAmount

    Amount paid each

     

    €600

    Multiple by number of remote working days

    €600 x 181

    €108,600

    Divided by 366

    €108,600 / 366

    €296.72

    Allowable cost (10%)

    €296.72 x 0.1

    €29.67

    Calculation of one portion of broadband remote working costs
    DescriptionCalculationAmount

    Amount paid each

     

    €179.94

    Multiple by number of remote working days

    €179.94 x 181

    32,569.14

    Divided by 366

    €32,569.14 / 366

    €88.98

    Allowable cost (30%)

    €88.98 x 0.3

    €26.69

    At the end of the year, Rob and Mark each complete their own Income Tax Return for 2020. They will each make a claim for costs of €56.36 for remote working relief.

    Rob and Mark both pay tax at the higher tax rate (40%) and will receive €22.54 as tax relief.

    If they have not uploaded receipts details and images, they must retain the utility bills that relate to their claim for six years.

Next: How to claim Remote Working Relief

Published: 08 February 2024 Print this page

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