Work from home relief – how does it work ?
Revenue operates an administrative practice which allows an employer to make payments up to €3.20 per day to employees, subject to certain conditions, without deducting Income Tax, PRSI or USC.
There is no obligation on the employer to make such a payment and the payment is at the discretion of the employer.
The main conditions are:
1 there is an agreement in place between the employer and employee under which the employee works from home,
2 the employee performs substantive duties of his/her employment at home, and
3 performs his/her duties for substantial periods at home.
4 Amounts in excess of €3.20 per day paid by the employer should be subject to Income Tax, PRSI and USC in the normal manner.
5 Records of payments made must be retained by the employer for the purpose of any potential future Revenue compliance review.
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie