€9.4m in claims for broadband, heating from those working at home

Workers claiming an average of €132 for broadband and heating whiel working from home last year

The relief covers up to 10% of the cost of electricity and heat and 30% of the cost of broadband for workers at home. Picture: iStock

PAYE workers have so far claimed €9.4m for tax relief for working from home to cover expenses such as heating and broadband, figures from the Revenue show.

With pandemic restrictions forcing a huge section of the workforce to work from kitchens and bedrooms across the country, Revenue has received approximately 71,184 claims for tax relief which covers up to 10% of the cost of electricity and heat incurred and 30% of the cost of broadband. The figures average €132 per claim for 2021.

Revenue allows employers to make payments up to €3.20 per day to employees who are working from home without deducting PAYE, PRSI, or USC. 

Employees who do not receive this allowance from their employer can make a claim for relief directly to the Revenue supplying receipts and bills.

The final date for PAYE workers to file tax returns for 2020 is October 31. 

However, in figures supplied to the Irish Examiner, Revenue said that as of May 24, just over 593,200 PAYE taxpayers have filed a tax return for 2020. 

Approximately 12% of these returns contain a claim for ‘Remote Working Relief’ with a gross value of €9.4m," Revenue said, adding that the amount of relief a taxpayer will receive in respect of a ‘Remote Working Relief’ claim depends on the rate of tax he or she pays. If the taxpayer is liable for tax at the higher rate of 40%, tax relief will be granted at that rate. Otherwise, tax relief will be granted at the standard rate of 20%.

Tax specialists Taxback.com carried out a recent survey which found that just 28% of taxpayers were aware of the Working from Home Relief. 

"As a nation, we simply are not aware of what’s available to us in tax reliefs and refunds —many of our European counterparts are streets ahead in this regard," Marian Ryan, consumer tax manager said.

"The limited number of people aware of the Work from Home allowance is surprising given that huge swathes of the Irish workforce are currently working remotely and would be eligible to claim for this."

Revenue's guide to claiming Remote Working Relief