DISCLAIMER: This information is a summary only and is not intended to constitute tax advice. For tax advice consult a Tax Advisor only.
Working from home Tax Relief. The simple guide…
A PAYE worker in Ireland should claim remote workers relief for several beneficial reasons:
- Reduction in Taxable Income: Remote workers relief can lower your taxable income by allowing you to claim certain expenses incurred while working from home. This can result in a lower overall tax bill.
- Expense Reimbursement: You can claim for a portion of home utility costs, such as electricity, heating, and broadband, which are necessary for your work. This means you are not fully out of pocket for these additional expenses.
- Increased Disposable Income: By reducing your tax liability, you effectively increase your disposable income, providing you with more financial flexibility.
- Offset Additional Costs: Working from home often leads to additional costs that you wouldn’t incur if you were working in an office, such as higher utility bills. Claiming remote workers relief helps offset these costs.
- Simplified Claim Process: The process for claiming remote workers relief has been simplified and can be done through the myAccount portal, making it convenient and straightforward.
- Encouragement of Remote Work: By claiming this relief, you support and benefit from government incentives aimed at encouraging remote work, which can have broader benefits such as reducing commuting time and costs, and promoting a better work-life balance.
- Financial Relief During Difficult Times: Especially during times like the COVID-19 pandemic, when many were required to work from home, this relief can provide significant financial support and relief.
- Awareness of Tax Benefits: Claiming this relief can increase your awareness of other potential tax benefits and reliefs that you may be eligible for, promoting better financial literacy and management.
- Compliance and Fairness: Ensuring you claim all available reliefs means you are fully compliant with tax laws and not overpaying on taxes. It ensures fairness in your tax contributions based on your actual working conditions.
By claiming remote workers relief, a PAYE worker in Ireland can benefit financially by reducing their tax liability, receiving reimbursement for additional expenses incurred while working from home, and ensuring fair tax treatment in line with their working situation.
Dara Burke
Web Entrepreneur
Dara is the founder of myTaxHero.ie, an organisation whose mission is to help young workers survive the cost-of-living and housing crisis in Ireland. Dara spent ten years abroad, living and working in Asia, the US, the Subcontinent and elsewhere. He returned home over a decade ago. After experiencing housing instability himself during a bout of serious illness. He does what he can to pressure the powers-that-be into coming to terms with the mess they’ve created.