New Survey Reveals Over 60% of Irish Workers Unaware Of eWorker Tax Relief
Working from home is a new reality that many Irish employees have had to adapt to during the COVID-19 crisis. However, many workers are unaware of their tax entitlements when it comes to working from home.
In fact, a recent Taxback.com survey of 2,500 taxpayers revealed that 63% of those who are working from home did not know that they were entitled to claim tax relief.
eWorker tax relief
Employers can choose to pay €3.20 tax-free per day (or approximately €800) per year to cover the additional costs - such as electricity, heating and broadband expenses - incur while working from home.
However, there is no legal requirement for employers to provide their employees with this payment.
If your employer is not in a financial position to make this payment, you can claim tax relief yourself on the cost of your expenses.
Revenue accepts that 10% of household expenses are considered to be business expenses (no relief is given for any private element of the expenditure).
Here’s how to claim tax relief on your working from home expenses.
Recent statistics from the Central Statistics Office (CSO) revealed that almost half of the population aged 15 years and older have experienced an impact on their employment during the pandemic.
34% of those who have been impacted have started remote working from home, 23% have experienced a change in their working hours and around 12% have increased the number of hours working from home.
Our aim is to spread the message to the large cohort of people who are working from home that they could offset the extra financial burden incurred during the crisis, such as heating costs and broadband.
Enhanced tax relief
Survey respondents were also asked respondents if they would favour the introduction of greater tax incentives for people who are working from home. The average Irish tax refund is €1,880
55% said that they prefer a tax incentive, and 45% answered they would prefer to see the money used to fund childcare.
Have you worked from home? Make sure that you avail of every credit and relief you are entitled to and claim the maximum tax relief.