Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

114A Deductions in respect of remote working

Summary

This section provides for income tax relief for remote working, in the form of a tax deduction, allowing employees who work from his or her residential premises claim 30 per cent of the cost of electricity, heating and broadband, apportioned on the basis of the number of days worked from his or her residential premises during the year.

Definitions

(1) “qualifying residence”, means a residential premises which is also used by a remote worker to perform the duties of the office or employment;

“relevant expenses” means expenses incurred and defrayed by the remote worker on the provision of electricity, heating or an internet connection in his or her qualifying residence;

“remote worker” means a person who is the holder of an office or employment of profit who performs some or all of the duties of the office or employment:

  1. by working from his or her residential premises on a full-time or part-time basis,
    or;
  2. by working some of his or her normal working time from his or her residential premises, with the remainder of that normal working time being spent in his or her normal place of employment or in some other place;

“residential premises” means, a dwelling or part of a dwelling which is occupied by an individual as his or her residence;

“specified amount”, in relation to a year of assessment, means the amount of expenditure which qualifies for income tax relief.

The Relief

(2) This provides a tax deduction for the relevant expenses of a remote worker for working from his or her residential premises based on the formula in subsection (4).

(3) Where a claimant proves that the relevant expense was incurred by them or by his/her spouse or civil partner, the claimant shall be entitled to the remote working relief.

(4) This subsection provides for a formula to calculate the tax deduction, being 30% of the cost of the expenses paid for electricity, heating or an internet connection, apportioned based on the number of days worked from his or her residential premises in the year of assessment as follows:

(A × B)

– D

C

where-

A

is the amount of the relevant expenses incurred and defrayed by the remote worker in the year of assessment,

B

is the number of days in the year of assessment the remote worker performed the duties of his or her office or employment of profit from his or her qualifying residence,

C

is the number of days in the year of assessment, and

D

is any amount reimbursed or to be reimbursed, directly or indirectly to the remote worker in relation to those expenses by his or her employer.

(5) Where two or more individuals (other than where the claimant is a married person or a civil partner and jointly assessed to tax) incur and defray the expenses of working from their qualifying residential premises, the cost shall be apportioned on the basis of the amount paid by each individual.

(6) The claimant shall provide to the Revenue Commissioners, through electronic means full particulars of the relevant expenses required when making a claim for remote working relief including:

  1. the bill from the service provider in respect of the service provided relating to the claimant’s qualifying residence; and
  2. any other information required by the Revenue Commissioners to determine whether the requirements of this section are met.

(7) Where relief is given under this section in respect of relevant expenses, no other relief or deduction under any other provision of the Income Tax Acts shall be given or allowed in respect of relevant expenses.

Relevant Date: Finance Act 2021