Budget will include tax breaks for permanent remote working

Tánaiste Leo Varadkar said the tax breaks will facilitate staff to work on a remote basis on a permanent or blended basis, and help businesses too

Tax breaks will be included in the upcoming budget to incentivise remote working on a permanent basis

Tax breaks to incentivise remote working on a permanent basis will be included in the Budget in October, Tánaiste Leo Varadkar has said.

Speaking at the launch of his remote working campaign, Mr Varadkar said we don't want things to drift back to the way they were.

“We don't want to go back to the old normal. We want the new normal, and we want that to based on personal choice,” he said.

“We will have, in the budget, a package around remote working. Paschal Donohoe, the finance minister and I are working on it, and it'll be a change to the existing tax and expenses regime to support people who are remote working and also to help businesses,” he said.

He said what most people appear to want to do is some form of blended working which would see people in the office on some days and working remotely, either at home or in remote working hubs, on other days.

He said that all going to plan, level two restrictions provide for a return to the workplace for training, induction, and meetings.

Tanaiste Leo Varadkar at Government Buildings in Dublin speaking during the launch of a campaign calling on employers to continue to facilitate remote working options post-pandemic. Picture: Niall Carson/PA Wire

Level one would allow for a staggered returned to the workplace from September.

“We'd certainly anticipate that come September, when all adults are fully vaccinated, that we'll be in the position to make this a choice for the future. Hopefully, maybe a little bit earlier in August, depending on how things develop,” Mr Varadkar said.

There's potential costs and savings for employers and employees in the plan, he said.

"Obviously, employers have to provide the equipment and so on and employees will have costs related to utilities and so on. There's also savings to reduce commuting costs and reduce transport costs, so it isn't going to be a once one size fits all approach. It is going to depend on the individual, and depend on, on the workplace,” he said.

Mr Varadkar called on employers and employees to make remote and home working a much bigger part of working life after Covid.

“We know what can now be achieved in terms of productivity how practical it is and how successful it's been, but at the moment it's not a choice, people are being told that they have to work from home.

“The pandemic has required many office-based workers to work from home. We know now that it can be done. But, at the moment, it’s not a choice. Many want to return to the office, many want to continue to work from home or a remote hub local to where they live. Most want a blend. After the pandemic, it should be about choice, so long as the work gets done and business and service needs are met. That’s the principle I want to apply,” he said.

A new survey released by recruitment website Irishjobs.ie found 38% of employees remain completely in the dark about the long-term plan for their working arrangements.

Many believe this is due to employers awaiting further public health advice, but pointed out the difficulties posed by the uncertainty, such as making decisions about living arrangements, child-minding, and school placement.