Working from home and tax
Example for claiming tax relief for working at home expenses
The example below outlines the approach for employees claiming relief for allowable
e-working expenses (i.e. expenses that are incurred wholly, exclusively and
necessarily in the performance of the duties of their employment)
Example:
John works 180 days in total during the year, and 90 of these days are from home.
The annual amount paid on allowable utility bills (heating and electricity) is €1,750:
The portion of utility bills that applies to e-working days is:
Allowable utility bills x No. of e-working days:
€1,750 X 90/365 = €432
This amount (€432) should then be apportioned between use for employment
purposes and private use.
Revenue are willing to accept that the average proportion of the house attributable
to a home office is 10%. Therefore, in this example the amount of e-working
expenses that would be “allowable deductions incurred in employment” is €432 X
10% = €43.00 (this is the e-working expense amount due).
Subject to qualifying conditions and criteria
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie