e-Working and Tax

Mar 23, 2020

The current Government recommendations for employees to work from home as a result of COVID-19 meet the conditions for e-working relief.  This is according to the updated guidance manual published by Revenue recently. The manual states that an employer may pay the employee up to €3.20 per day without deducting PAYE, PRSI or USC to cover the additional costs of working from home.  

 If the employer does not make a payment of €3.20 per day to the employee then the employee may be entitled to make a claim under section 114 TCA 1997 in respect of vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of the employment.    

The manual is also updated to include guidance: 

  • Explanation of what constitutes an e-worker, with examples.
  • Conditions for payment by employer for home expenses of e-workers.
  • Approach for employees claiming relief for allowable e-working expenses where employer does not make a payment. 

Read the manual in full here.