I am working from home for my job. Is there any tax relief available ?
Yes, there is tax relief for working from home.
Your boss may pay you €3.20 tax free per day for this.
Where your boss does not wish to pay the €3.20, you may be entitled to claim a deduction in respect of actual vouched expenses (supported by receipts) incurred for working at home.
The relief is given as an income deduction, which means, that relief is given at employee’s marginal rate.
In other words, if you pay income tax at 20%, the relief will be at 20%.
But if you pay income tax at 40%, the relief you can claim will be at 40%.
No relief is available for USC and PRSI.
Note that revenue will usually only accept that 10% of household expenses are considered to be business expenses regardless of number of rooms etc in your home
For example:
Sarah works 5 months (150 days) from home and incurred utility bills in amount of €800 for these five months.
€800 x 10% (Revenue agreed proportion) =€80 attributed to the performance of her employment duties.
Relief available is either at 20% or 40% depending on personal circumstances, so either €16 or €32.
Any queries on above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie