Q&A: How much is the remote working allowance worth to me and how do I claim it? 

The finance minister said the deduction will support living standards as the Irish economy starts to recover from the Covid-19 pandemic.

In his Budget 2022 speech, Paschal Donohoe announced that employees working from home will be able to claim back 30% of their energy bills against their income tax.

Previously, the allowance for remote working in terms of electricity and heating bills was 10%, assuming the person working remotely wasn’t claiming a daily allowance from their employer of up to €3.20 per day.

The broadband subsidy level was already set at 30%.

The finance minister said the deduction will support living standards as the Irish economy starts to recover from the Covid-19 pandemic.

How much is it worth?

Following Tuesday's budget announcement, Tánaiste Leo Varadkar said the 30% of expenditure on utilities will be worth €220 per worker per year.

Mr Varadkar said the new allowance would be calculated on a pro-rata basis to allow for those choosing to work in a hybrid fashion, with their time split between the office and home.

However, Brian Keegan, director of public policy at Chartered Accountants Ireland, said the changes were 'tokenistic and will be worth at most €60 a year for many individuals.

The accountants estimate the existing scheme, which is worth €20 annually to individuals, will increase to €60, and "hardly offset" the hike in the costs of heating a home and paying for broadband, Mr Keegan said.

What can I claim for?

Those working from home can claim the remote working allowance as long as their employer does not make payment of the €3.20 daily allowance.

Under the latest change to the working from home tax deduction, remote workers can claim for:

• 30% of the cost of electricity and heat incurred, apportioned based on the number of days worked at home over the year
• 30% of the cost of broadband incurred, apportioned based on the number of days worked at home over the year.

Revenue says any amounts paid by your employer must be deducted from the claim.

Those working from home can claim the remote working allowance as long as their employer does not make payment of the €3.20 daily allowance.

Capital items such as laptops, computers, office equipment and office furniture purchased by you are not allowable costs.

Do I need receipts?

Like any other tax claim, if you work from home and want to apply for the tax deduction, it is important to keep a record of the expenses you intend to claim.

Keeping hold of all your receipts and bills should suffice, but you may also need a letter from your employer to confirm that you are working from home.

How do I claim it?

Claiming for the tax deduction for 2021 can be done through the MyAccount portal on Revenue's website using the receipt tracker in the PAYE Services section.

Pictures of your receipts must be clear, readable and show that you paid the bill amount claimed.

According to Revenue, "you will need to complete your 2021 Income Tax Return at the end of the year in order to claim."

Caitriona Allis, head of Ireland’s Association of Chartered Certified Accountants (ACCA), said the group are calling for "a more streamlined process when claiming these tax credits to support maximum uptake by PAYE workers”.

Can I and my partner/housemate each claim the deduction if we are both working from the same home?

If the costs of energy and broadband are shared between two or more people, Revenue says the claim can be divided based on the amount each person has paid.

More information on how this will break down can be found on Revenue.ie.