Remote Working Relief – Rules and Calculations

Remote work allows you to work full-time or part-time from the comfort of your home. This setup involves accessing the employer’s computer system, managing emails and files, and participating in developing ideas, products, and services remotely. 

If you are working from home, you may qualify for tax relief on costs like electricity, heating, and broadband. Claiming home office expenses, such as furniture or equipment, is separate from Remote Working Relief.  

In this guide, we’ll explain Remote Working Relief, offer an example of the eligible amount for tax relief, and outline the steps for applying for this benefit. 

Remote Working Relief is a tax benefit for individuals who work remotely, from their home. As part of this relief, eligible individuals can claim 30% of the expenses incurred for electricity, heating, and broadband.  

You calculate allowable remote working costs by including only the days you actively worked from home. Exclude weekends, public holidays, annual leave, and any days when work was brought home outside of regular working hours. 

After taking out weekends (104 days), public holidays (10 days), and annual leave (20 days), an average year boils down to just 232 working days. So, in most cases, this is the maximum number of days you could claim for – not the full 365. 

As a remote worker, your employer can provide you with a daily payment of up to €3.20 without deducting PAYE, PRSI, or USC, intended to cover added expenses like electricity, heating, and broadband associated with working from home.  

If your employer provides a daily payment exceeding €3.20 to cover expenses, you will be subject to normal tax, PRSI, and USC deductions on the amount exceeding €3.20. 

If you apply for Remote Working Relief, any reimbursement from your employer for remote working expenses should be subtracted from your claim. 

• If your employer does not pay you a working from home allowance, you can claim tax relief during the year or after the end of the year.
• If your employer pays you a working from home allowance, you can still apply for Remote Working Relief. However, it’s crucial to deduct any reimbursement received from your employer for remote working expenses when making your claim. 

Example calculation 1

Aaron worked from home for 200 days. The cost of his electricity, heat, and broadband for 2023 was €3,000. Aaron does not receive an allowance for remote working from his employer. 

Example calculation 2

Brenda worked from home for 150 days. The cost of her electricity, heat, and broadband for 2023 was €1,000. Brenda does not receive an allowance for remote working from her employer. 

Example calculation 3

Caroline worked from home for 230 days. The cost of her electricity, heat, and broadband for 2023 was €2,000. Caroline received €3.20 per day she worked from home.