Working from Home Tax Relief

Cork81

Hi there,

I am looking to put though a claim for working at home expenses since last March. From looking at the criteria I am allowed claim relief on Electricity & Heating bills and also Broadband. I have my bills online for my Elec & Heating so can add up the total easily, but have an issue with my broadband as it is all one package linked in with TV & Phone, so not sure how much I can claim on this one. Any one any ideas, the broadband has the higher threshold too so would like to be able to claim this.
Thanks

mkdon

Cork81 wrote: »

Hi there,

I am looking to put though a claim for working at home expenses since last March. From looking at the criteria I am allowed claim relief on Electricity & Heating bills and also Broadband. I have my bills online for my Elec & Heating so can add up the total easily, but have an issue with my broadband as it is all one package linked in with TV & Phone, so not sure how much I can claim on this one. Any one any ideas, the broadband has the higher threshold too so would like to be able to claim this.
Thanks

in same boat here

D3V!L

How did you go about doing this ?

mkdon

Cant see anything on revenue.ie site

Saudades

Best thing to do is probably ask the broadband provider for an exact percentage breakdown. Then if Revenue audit you, you can just give them the provider's correspondence.

Bigdig69

Its all here

https://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/eworking_and_tax_relief.html

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

PCros

So Revenue and Citizens seem to have different advice on the the totalling up of the amounts for broadband and utility.

Revenue say its the full year divided by 365 and Citizens say its just the timeframe that you were home? I could be missing something here?

https://www.revenue.ie/en/jobs-and-pensions/eworking/index.aspx

https://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/eworking_and_tax_relief.html#l2b696

Dodge

PCros wrote: »

So Revenue and Citizens seem to have different advice on the the totalling up of the amounts for broadband and utility.

Revenue say its the full year divided by 365 and Citizens say its just the timeframe that you were home? I could be missing something here?

https://www.revenue.ie/en/jobs-and-pensions/eworking/index.aspx

https://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/eworking_and_tax_relief.html#l2b696

The my revenue system does the calculation for you, and it asks how many days you were working from home

It asks for your total energy bill, your total broadband bill and then how many days you were working from home

You don’t have to calculate anything

PCros

Dodge wrote: »

The my revenue system does the calculation for you, and it asks how many days you were working from home

It asks for your total energy bill, your total broadband bill and then how many days you were working from home

You don’t have to calculate anything

Thank you - I saw that on the Revenue website but before I hit complete I just had a question...

Q - Do I add up the full total of elec/gas for the year that came out of my current account even though I only started WFH from April?

Dodge

Yes. The total you paid for energy and broadband this year

The days you enter then take the percentage of that

obi604

Hi

hoping I can jump on here.
My company have given this general statement that we can use in a letter: "This is to confirm that XX performed his work from home due to Covid-19 pandemic from DD/MM/YYYY till present. The company did not cover any utility costs for the employee during this time"

Can anyone advice on what process do I follow next?
Does this mean I am entitled to the 3.20 a day?

I have looked at some websites, but still confused, like this one: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf

Dodge

obi604 wrote: »

Hi

hoping I can jump on here.
My company have given this general statement that we can use in a letter: "This is to confirm that XX performed his work from home due to Covid-19 pandemic from DD/MM/YYYY till present. The company did not cover any utility costs for the employee during this time"

Can anyone advice on what process do I follow next?
Does this mean I am entitled to the 3.20 a day?

I have looked at some websites, but still confused, like this one: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf

No. It’s the companies decision whether they pay you the extra €3.20 a day. If they don’t pay you that, then you can claim the tax relief as mentioned above. The letter you have isn’t necessary

obi604

Dodge wrote: »

No. It’s the companies decision whether they pay you the extra €3.20 a day. If they don’t pay you that, then you can claim the tax relief as mentioned above. The letter you have isn’t necessary

Hi. But have the company not made the decision based on the Letter?

wench

obi604 wrote: »

Hi. But have the company not made the decision based on the Letter?

They have decided not to give it to you, so you are left with having to claim tax relief on 10% of your bills instead.

See section 4.2 of that doc

Saudades

obi604 wrote: »

Hi. But have the company not made the decision based on the Letter?

They probably just issued the generic letter as a courtesy in case you get audited by Revenue.

obi604

wench wrote: »

They have decided not to give it to you, so you are left with having to claim tax relief on 10% of your bills instead.

See section 4.2 of that doc

Thanks.

So essentially , is this the example I need to follow.

https://ibb.co/S3F37kP

wench

Yes, that's it

obi604

wench wrote: »

Yes, that's it

Thanks. For the “No. of e-working days” - Is this got by calculating the number of working days from March to December 31st and then subtracting vacation days and bank holidays?

obi604

obi604 wrote: »

Thanks. For the “No. of e-working days” - Is this got by calculating the number of working days from March to December 31st and then subtracting vacation days and bank holidays?

Any comments on this?

phantom_lord

There's an online cal for working out the amounts. Not a huge amount.

https://eworking.herokuapp.com/

obi604 wrote: »

Any comments on this?

Yeah it would be the days you actually worked at home.

obi604

phantom_lord wrote: »

There's an online cal for working out the amounts. Not a huge amount.

https://eworking.herokuapp.com/



Yeah it would be the days you actually worked at home.

thanks. yeah its fairly crap alright the amount I get back.



probably less than 25 cent a day. disappointing. 25 cent a day wont pay for much

Snotty

Mine is €6.60

obi604

Snotty wrote: »

Mine is €6.60

Lord. How is that little.


edit: I made a b@lls of my calculations

This isn't worth a damn really. look like from 186 days of home working, ill get about 22 euro. brutal

about 12 cent a day, wont even pay for 1kw of electricity a day.

for the "Number of members in the household" in this link: https://eworking.herokuapp.com/
does this include small kids too or just adults?

Dodge

Revenue doesn’t ask for the number of people in your household

Total amount of energy bills for 2021
Total broadband bill for 2021
Number of days spent working at home

That’s all you need

If a married couple you can claim for both

obi604

Dodge wrote: »

Revenue doesn’t ask for the number of people in your household

Total amount of energy bills for 2021
Total broadband bill for 2021
Number of days spent working at home

That’s all you need

If a married couple you can claim for both

ok, so maybe ignore the number of poeple in household for the revenue, as this divides everything by 4

wife does not work, kids are all under 8

Saudades

Dodge wrote: »

Revenue doesn’t ask for the number of people in your household

Total amount of energy bills for 2021
Total broadband bill for 2021
Number of days spent working at home

That’s all you need

If a married couple you can claim for both

A married couple can't both claim for the total amount energy/broadband bills.

They can either each claim relief for 50% of the total bills, or only one of them claims 100% relief for the total bills.

BanananaBread

Graduated this year and started my first job working from home in June. Thus, haven't had the need to move out yet and so I still live with my parents. Naturally, bills are in my mam's name.

I have been giving my parents a contribution since starting in the job as I am the only one working from home in the house. Employer has confirmed that we are not receiving the €3.20.

Wondering how I should go about claiming this, or is it worth the bother?

obi604

BanananaBread wrote: »

Graduated this year and started my first job working from home in June. Thus, haven't had the need to move out yet and so I still live with my parents. Naturally, bills are in my mam's name.

I have been giving my parents a contribution since starting in the job as I am the only one working from home in the house. Employer has confirmed that we are not receiving the €3.20.

Wondering how I should go about claiming this, or is it worth the bother?

you will probably end up getting about 3.20 back in total



not helpful I know, but not far off the mark

not sure how it works for your situation with bills not in your name etc

obi604

I need to do this remote working relief sceanrio
plus I need to claim for health expenses (the 20% back scenario)

Can I go in to ros.ie and do these separately or is best do them in the one go?

XVII

surprised there is such a difference in amounts between if employer agrees to do this or not.

our company started doing this pretty much in April, and 60 quid per month is definitely a good addition.

Geuze

obi604 wrote: »

I need to do this remote working relief sceanrio
plus I need to claim for health expenses (the 20% back scenario)

Can I go in to ros.ie and do these separately or do them in the one go?

Easiest is to do your tax return all in one go:


any extra incomes
any medical expenses
WFH expenses

If using Form 12, then use Revenue MyAccount.

If using Form 11, then use ROS.

obi604

Geuze wrote: »

Easiest is to do your tax return all in one go:


any extra incomes
any medical expenses
WFH expenses

If using Form 12, then use Revenue MyAccount.

If using Form 11, then use ROS.

if i do in the one go, will it detail how much I got for each claim or just lump it all in one

Geuze

I can't really remember the detail, it may ask you to separate out:

pharmacy
doctors
dental

thegills

Geuze wrote:

If using Form 12, then use Revenue MyAccount.

Geuze wrote:

If using Form 11, then use ROS.

Hey Geuze. Whats the difference between the 2 forms?

Tow

Form 12: PAYE Worker with < €5,000 from other sources, via myAccount
Form 11: PAYE Worker >= €5,000 from other sources, Self Employed, Self Assessed , via ROS

Form 11 is more complex than Form 12 and they are handled by different sections within Revenue.

Geuze

Who should register for Income Tax self-assessment?
You should register for Income Tax self-assessment if:

you are self-employed

your only or main source of income is:
rental income
investment income
foreign income including foreign pensions
maintenance payments
fees that are exempt from PAYE

you have profited from share options or share incentives.


You do not need to register for self-assessment if:

you only have PAYE income
or
your taxable non-PAYE income does not exceed €5,000 and your gross non-PAYE income does not exceed €30,000. That income must be coded for PAYE purposes. ’Coded’ means the income is taken into account in calculating your tax credits and standard rate cut-off point for PAYE purposes. In this case, you must submit a Form 12 online through PAYE Services in myAccount.

You can register for self-assessment by using the eRegistration service or completing part A and part B of Form TR1.

Geuze

Form 12 = PAYE workers, with small extra income


Form 11 = self-assessment

https://revenue.ie/en/self-assessment-and-self-employment/guide-to-self-assessment/who-should-register-for-income-tax-self-assessment.aspx

obi604

Geuze wrote: »

I can't really remember the detail, it may ask you to separate out:

pharmacy
doctors
dental

i more so meant, if I do the claim for medical and working from home at once, will it break it out to say, ok you got X Euro amount back for medical and Y Euro amount back for working from home

relax carry on

obi604 wrote: »

i more so meant, if I do the claim for medical and working from home at once, will it break it out to say, ok you got X Euro amount back for medical and Y Euro amount back for working from home

It's kinda there but you'd need to be able to do some basic maths to figure it out fully. The credits are on page two but the marginal rate aspects of them are on page one. The reason why it displays like this is because of the way the PAYE tax system works.

If you input the claims, so long as you have actually paid enough tax in the tax year you are claiming, you will be refunded the maximum allowable based on the amounts you input and the tax you have paid. You will see the final page of the return before you submit, all the credits and reliefs you have claimed.

obi604

relax carry on wrote: »

It's kinda there but you'd need to be able to do some basic maths to figure it out fully. The credits are on page two but the marginal rate aspects of them are on page one. The reason why it displays like this is because of the way the PAYE tax system works.

If you input the claims, so long as you have actually paid enough tax in the tax year you are claiming, you will be refunded the maximum allowable based on the amounts you input and the tax you have paid. You will see the final page of the return before you submit, all the credits and reliefs you have claimed.

Thanks. Could I do the claim for medical expenses today

and then in 3 weeks time, do the claim for working from home ....so as to break them up.



i.e. does the system allow you to do them seperate, I dont want to make a claim for medical now and then find out its shut and I cant do another claim for working from home

Evd-Burner

I've done my medical and e-working claims just over a week ago.

Revenue worked it out to be 200 euro. As this will be a reduction in salary calculation and not a tax credit it will like I will only get 80 euro, I'm wondering will I also get USC refund.

OU812

Dodge wrote: »

The my revenue system does the calculation for you, and it asks how many days you were working from home

It asks for your total energy bill, your total broadband bill and then how many days you were working from home

You don’t have to calculate anything

Do you have a link to this? I can’t find it

wench

obi604 wrote: »

i more so meant, if I do the claim for medical and working from home at once, will it break it out to say, ok you got X Euro amount back for medical and Y Euro amount back for working from home

When you do the return there is a separate line item with the amount for each type of claim.
There is no need for messing about with multiple returns.

Geuze

obi604 wrote: »

i more so meant, if I do the claim for medical and working from home at once, will it break it out to say, ok you got X Euro amount back for medical and Y Euro amount back for working from home

When somebody submits a Form 12, a few weeks later they get back a Balancing Statement, used to be called a P21.

I think it's called a Statement of Liability now.

That shows all the workings, from gross pay to taxable pay, to taxes due, including all tax credits.

Perhaps you have seen a P21 already?

Dodge

OU812 wrote: »

Do you have a link to this? I can’t find it

On the revenue website. Click on ‘my account’ and then ‘review my tax 2017-2020’

It’ll ask you to confirm income etc and just follow the stages as they come up

Geuze

obi604 wrote: »

Thanks. Could I do the claim for medical expenses today

and then in 3 weeks time, do the claim for working from home ....so as to break them up.



i.e. does the system allow you to do them seperate, I dont want to make a claim for medical now and then find out its shut and I cant do another claim for working from home

NO.

If you do that, an amended P21 will have to be issued.

You can do that, but I suggest doing one tax return.

bonjurkes

Dodge wrote: »

No. It’s the companies decision whether they pay you the extra €3.20 a day. If they don’t pay you that, then you can claim the tax relief as mentioned above. The letter you have isn’t necessary

So we don't need a letter from employer saying that "I didn't paid 3.20 to my employee per day for e-working" or do we need it? To write the mentioned electric, internet, energy bills as e-working expense.

relax carry on

bonjurkes wrote: »

So we don't need a letter from employer saying that "I didn't paid 3.20 to my employee per day for e-working" or do we need it? To write the mentioned electric, internet, energy bills as e-working expense.

Nope just go into your 2020 tax return and input your gross spends for your utilities and days spent working from home in the relevant boxes of the remote working relief section. Don't forget to tick the box that says your employer didn't pay you the tax free payment.

bonjurkes

relax carry on wrote: »

Nope just go into your 2020 tax return and input your gross spends for your utilities and days spent working from home in the relevant boxes of the remote working relief section. Don't forget to tick the box that says your employer didn't pay you the tax free payment.

Thanks! And while calculating for days working from home, should we deduct the off days that we didn't work? Like Saturdays and Sundays.

Snotty

bonjurkes wrote: »

Thanks! And while calculating for days working from home, should we deduct the off days that we didn't work? Like Saturdays and Sundays.

Yes

Do we need to submit bills for energy, BB etc or would that be only if audited?

bonjurkes

Snotty wrote: »

Yes

Do we need to submit bills for energy, BB etc or would that be only if audited?

It says you "can" submit bills for 2020 for BB etc. or you need to prove it if they ask you for it. For 2021 you "must" upload it via the app.So for 2020, it's as usual, if you can prove it, then there is no problem. Or don't risk it and upload in case.

Last question, I got confused at revenue page which says, provide the bill amount for the year, does it mean I should add the bill for whole year? (Even I do work at office before pandemic?) Because the example says that "Niamh works 90 days from home for 180 working days and she paid ... for the year".

So from that context I get it as we provide the whole year's bills and they take the average of it based on the days we worked from home. But I am not sure.


Source: https://www.revenue.ie/en/jobs-and-pensions/eworking/index.aspx