Tax Relief for Home Workers

Mackzee

Some info here on the revenue site;

https://www.revenue.ie/en/employing-people/employee-expenses/e-working-and-home-workers/index.aspx

OU812

Doesn't explain how to apply for it though. Doesn't appear to be in the revenue or ros sites

barneystinson

OU812 wrote: »

Doesn't explain how to apply for it though. Doesn't appear to be in the revenue or ros sites

You don’t apply for it - if you read it carefully you’ll see it says that the employer can pay the employee up to €3.20 per day tax free to reimburse them for the expense of additional utilities etc working from home.

barneystinson

Mackzee wrote: »

Some info here on the revenue site;

https://www.revenue.ie/en/employing-people/employee-expenses/e-working-and-home-workers/index.aspx

Your thread title is misleading - it’s not a tax relief, it’s a tax free payment in respect of expenses, that an employer may make to their employees (if they wish).

relax carry on

OU812 wrote: »

Doesn't explain how to apply for it though. Doesn't appear to be in the revenue or ros sites

It's claimed for back years via and EForm 12 under other PAYE expenses or via form 11 under allowable deductions incurred in employment.

So you will have to wait untill at least January next year to claim for 2020.

Keep in mind the relief is minimal and it's not €3.20 per working day amount. That's the amount an employer can pay an employee tax free. It's far easier for the employer to pay this than to claim via Revenue.

OU812

barneystinson wrote: »

You don’t apply for it - if you read it carefully you’ll see it says that the employer can pay the employee up to €3.20 per day tax free to reimburse them for the expense of additional utilities etc working from home.

Not too many employers will be paying it, it should be claimable on the revenue site.

relax carry on wrote: »

It's claimed for back years via and EForm 12 under other PAYE expenses or via form 11 under allowable deductions incurred in employment.

So you will have to wait untill at least January next year to claim for 2020.

Keep in mind the relief is minimal and it's not €3.20 per working day amount. That's the amount an employer can pay an employee tax free. It's far easier for the employer to pay this than to claim via Revenue.

It's €64 a month (or €128 a month for a couple), hardly minimal for people who might now be on restricted hours.

For those who's employer will not be paying it, there should be an online tax credit to claim.

Hoboo

barneystinson wrote: »

Your thread title is misleading - it’s not a tax relief, it’s a tax free payment in respect of expenses, that an employer may make to their employees (if they wish).

The 3.20 is a tax free expense payment. And if they don't pay the 3.20, you can still get tax relief on teleworking expenses. Title is correct.

damoth

Official documentation here: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf

See section 2.3 example 4, and sections 2.4 and 2.5 for how to claim.

ForestFire

Ill post a question in first, instead of starting a new thread, but Mods feel free to seperate if needed.

SO we here of tax relief for home workers here for such things as Heat, Broadband etc.

Is there a tax relief for home schooling?
- Stationary
- Arts and crafts
- Books
- Subscriptions
- Heat/broadband for the home classroom?

Thanks all

Padre_Pio

Any update on this? We can't apply until Jan 2021 correct?

OU812

Padre_Pio wrote: »

Any update on this? We can't apply until Jan 2021 correct?

That's my understanding, but open to be corrected.

If your job doesn't pay you the €3.20 per day (tax free), you can claim an allowance from Revenue - which is a percentage of the utilities & very much NOT €3.20 per day

Padre_Pio

OU812 wrote: »

That's my understanding, but open to be corrected.

If your job doesn't pay you the €3.20 per day (tax free), you can claim an allowance from Revenue - which is a percentage of the utilities & very much NOT €3.20 per day

How do they quantify this?

My gas, ESB and broadband bill have increased since March.

relax carry on

Padre_Pio wrote: »

How do they quantify this?

My gas, ESB and broadband bill have increased since March.

It's literally in the links above.

Padre_Pio

relax carry on wrote: »

It's literally in the links above.

Thanks.

Is there a definite list for allowable utility bills? Heating and electric is in the example.

Is broadband covered?

relax carry on

Padre_Pio wrote: »

Thanks.

Is there a definite list for allowable utility bills? Heating and electric is in the example.

Is broadband covered?

Again it's in the documentation in the link.

You can "claim a deduction under section 114 of the Taxes Consolidation Act (TCA) 1997 in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment". So literally what expenses you incur in carrying out your E- Working that aren't met by your employer. There is no list as everyone's situation is different. The expenses must be "incurred wholly, exclusively and necessarily in the performance of the duties of their employment".

Calahonda52

OU812 wrote: »

That's my understanding, but open to be corrected.

If your job doesn't pay you the €3.20 per day (tax free), you can claim an allowance from Revenue - which is a percentage of the utilities & very much NOT €3.20 per day

Let's put this widely disparaged 3.20 in perspective.

Assume working 22 days in a month.
So 70 euro tax free
so 116 when grossed up at 40% tax rate.

So suppose you want to claim 10% of your utilities to be greeter that this
so your utilities are > than 1,160/month?

The other thing is that you need to keep records for 6 years of the math behind your claim

franglan

So basically it would be cheaper for me to go to work if I could. Electricity for laptop, broadband router on, some heating and reheating of food/teas/coffees at home which would otherwise not be a personal cost? It's trivial but 10% won't break even. I work in a two bed apartment alone.

Padre_Pio

franglan wrote: »

So basically it would be cheaper for me to go to work if I could. Electricity for laptop, broadband router on, some heating and reheating of food/teas/coffees at home which would otherwise not be a personal cost? It's trivial but 10% won't break even. I work in a two bed apartment alone.

I suppose it depends on other costs.
Getting up early, commuting, maybe you need to buy lunch out etc.

thanks to the other posters here, I estimated my benefit will be a few hundred for the rest of the year.
Three of us are working from home, so we're all going to claim.

I haven't put petrol in my car in weeks, definite saving there!

Calahonda52

franglan wrote: »

So basically it would be cheaper for me to go to work if I could. Electricity for laptop, broadband router on, some heating and reheating of food/teas/coffees at home which would otherwise not be a personal cost? It's trivial but 10% won't break even. I work in a two bed apartment alone.

Do you walk to work?

franglan

Calahonda52 wrote: »

Do you walk to work?

Yes. Always. I rarely buy food in work as I bring my own in and never buy coffees etc.. I really am tremendous fun! It won't be a straight choice when this all settles down but having the choice I'd work from home full time.

OU812

franglan wrote: »

So basically it would be cheaper for me to go to work if I could. Electricity for laptop, broadband router on, some heating and reheating of food/teas/coffees at home which would otherwise not be a personal cost? It's trivial but 10% won't break even. I work in a two bed apartment alone.

I normally spend €100 a month on diesel. Another €40 or so on lunches (additionally bring some), spend about 60 mins a day commuting.

I’ve no commute. Lunches are from weekly grocery shopping (which has only increased slightly). I put €75 in diesel in my car on the 30th March. I still have ⅔ of that left.

Wife is working from home & her employer is paying them the €3.20 a day.

I’ll have to claim against revenue.

lughildanach

Employees can always raise the issue with their employers, or through a Union if there is one. As there is no additional tax liability on the 3.20 daily rate if paid by employer, it may be that some employers would consider paying it.

barneystinson

lughildanach wrote: »

Employees can always raise the issue with their employers, or through a Union if there is one. As there is no additional tax liability on the 3.20 daily rate if paid by employer, it may be that some employers would consider paying it.

Hardly a good time to be putting one’s hand out for more from the majority of employers, given the times that are in it.

If anyone is going down that road though, it’s worth remembering it’s not €3.20 or nothing. It’s UP TO €3.20. Given that claiming back a relatively small % of utilities is likely to be worth a small fraction of €3.20 a day a person would be better off if their employer would meet somewhere in the middle.

ForestFire

barneystinson wrote: »

Hardly a good time to be putting one’s hand out for more from the majority of employers, given the times that are in it.

If anyone is going down that road though, it’s worth remembering it’s not €3.20 or nothing. It’s UP TO €3.20. Given that claiming back a relatively small % of utilities is likely to be worth a small fraction of €3.20 a day a person would be better off if their employer would meet somewhere in the middle.

Agreed, This is an optional benefit from the company, which just happens to have a tax free limit. They can also gift you up to ~130euro (Or something like this) a year tax free...


If your asking for this, you may as well ask for a company car as well....:D

Calahonda52

barneystinson wrote: »

Hardly a good time to be putting one’s hand out for more from the majority of employers, given the times that are in it.

If anyone is going down that road though, it’s worth remembering it’s not €3.20 or nothing. It’s UP TO €3.20. Given that claiming back a relatively small % of utilities is likely to be worth a small fraction of €3.20 a day a person would be better off if their employer would meet somewhere in the middle.

.
well said:)

Will23

Resurrecting an old thread here but... I’ve read the revenue guidelines and it’s doesn’t prohibit a couple both claiming 10% of utilities( effectively 20%) or in a house share of 4-5 people working from home all claiming 10% Of utilities each. Has anyone read anything to the contrary ?

Thanks.

Will

barneystinson

Will23 wrote: »

Resurrecting an old thread here but... I’ve read the revenue guidelines and it’s doesn’t prohibit a couple both claiming 10% of utilities( effectively 20%) or in a house share of 4-5 people working from home all claiming 10% Of utilities each. Has anyone read anything to the contrary ?

Thanks.

Will

No, there's nothing ruling that out.

It might cover an early bird for everyone, when this is all over... (not with each other obviously, who wants to eat ANOTHER meal with the people they haven't been able to get away from for months on end)!

lughildanach

Will23 wrote: »

Resurrecting an old thread here but... I’ve read the revenue guidelines and it’s doesn’t prohibit a couple both claiming 10% of utilities( effectively 20%) or in a house share of 4-5 people working from home all claiming 10% Of utilities each. Has anyone read anything to the contrary ?

Thanks.

Will

You can claim what you want. But if you are audited and Revenue do not agree, then you will have to pay any underpayment along with any penalties.

Padre_Pio

Will23 wrote: »

Resurrecting an old thread here but... I’ve read the revenue guidelines and it’s doesn’t prohibit a couple both claiming 10% of utilities( effectively 20%) or in a house share of 4-5 people working from home all claiming 10% Of utilities each. Has anyone read anything to the contrary ?

Thanks.

Will

No, but two people wfh are using even more esb, gas etc. We have 3 people wfh in my house. Going to claim 30% back.

Calahonda52

Padre_Pio wrote: »

No, but two people wfh are using even more esb, gas etc. We have 3 people wfh in my house. Going to claim 30% back.

.
It only a % of the additional variable that is wholly, exclusively and necessarily consumed for the wfh.
So broadband is out
meter charges/PS levy/ standing charges are out
can only do it for 22 days in the month and you cannot breach the 1974 OHAW hrs rules

barneystinson

Let's not overthink this people. The guidance Revenue published said that they'll accept a 10% apportionment. They don't care, and won't be asking about, whether there's others wfh in the same residence.

Bear in mind, a 10% apportionment of utilities x 200 days equates to about 5.5% of the utilities. Even if the utilities for the year are 4k then that'd be 220 quid, so if the claimant is a high rate taxpayer that's about €90 in tax. That's the upper end of what we're talking about here. Nobody ought to be getting their knickers too twisted over these amounts, including Revenue, just get on with it.

barneystinson

Calahonda52 wrote: »

.
It only a % of the additional variable that is wholly, exclusively and necessarily consumed for the wfh.
So broadband is out
meter charges/PS levy/ standing charges are out
can only do it for 22 days in the month and you cannot breach the 1974 OHAW hrs rules

That's all well and good, strictly speaking, but if you look at Revenue's published guidance they have said they'll accept 10% of relevant utilities x X/365. This really is not a thing that needs to be overly complicated.

Padre_Pio

Calahonda52 wrote: »

.
It only a % of the additional variable that is wholly, exclusively and necessarily consumed for the wfh.
So broadband is out
meter charges/PS levy/ standing charges are out
can only do it for 22 days in the month and you cannot breach the 1974 OHAW hrs rules

We have had to upgrade our BB package due to WFH.
I will try to claim the difference in package cost.

barneystinson

lughildanach wrote: »

You can claim what you want. But if you are audited and Revenue do not agree, then you will have to pay any underpayment along with any penalties.

There'll be nobody getting a Revenue audit over their section 114 expenses claim for working from home, unless they make a mistake with the decimal points (and even then it's fairly unlikely). People whose claims are outliers will be likely to get asked to prove their claims, but that's not a Revenue audit.