Tax-Free Payment of up to €800 for Working From Home

Posted in Good Advice, Taxation

Around two-thirds of workers are unaware of a tax-free payment of more than €15 a week that can be made to those working from home.

A recent survey found that 63 per cent of people do not know their employer can pay them an amount tax-free to cover a portion of the costs associated by home working. This is despite the large numbers forced to work from home due to the Covid-19 pandemic.

Revenue has made provisions for thousands of people that already worked from home before the Covid-19 outbreak to be reimbursed for work-related expenses. These include heating, electricity and perhaps broadband.

Revenue is allowing people who are working from home to be paid €3.20 per day in expenses by their employer, if duties are being performed within normal working hours. However, the employer has to agree to pay it. This applies to firms where an employee is working at home full or part-time. The €3.20 can be paid by the employer without incurring income tax, USC or PRSI.

Workers must make a claim to Revenue for the actual cost of working from home instead of the €3.20 if employers do not reimburse staff.

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