MANY OF MY EMPLOYEES ARE E-WORKING FROM HOME. WHAT EXPENSES CAN THEY CLAIM AGAINST TAX?
If you are working from home and incurring expenses, there are two tax reliefs available to you: Your employer can voluntarily pay you an additional €3.20 a day tax free OR If your employer is not paying you €3.20 a day, you can make a claim yourself to Revenue for the expenses you incur as explained below.
WHAT AMOUNTS CAN I CLAIM AS A TAX DEDUCTION FOR 2022? For the 2022 tax year you can claim 30% of the amount you spend on your electricity, heat and broadband costs, apportioned over the number of days you work from home.
Example: Eileen estimates that she will be working from home for 91 days in 2022. At the end of the year she calculates her annual bills for light, heat and broadband at €2,180 .
Revenue will allow Eileen to write off 30% of her bills for the 91 days i.e. €163, resulting in a tax saving of either €33 (if on the 20% tax rate) or €65 (if on the 40% tax rate).
WHICH SCHEME IS BETTER? Under the €3.20 per day scheme, Eileen could receive €291 tax-free, which would result in a much better saving for her.
CAN MY EMPLOYER ALSO PROVIDE ME A COMPUTER, PRINTER, OFFICE FURNITURE ETC? Yes, and there is no tax payable by you provided they are mainly used for business purposes.
WHAT IF I HAVE TO PROVIDE MY OWN LAPTOP AND PRINTER, OFFICE FURNITURE ETC. CAN I CLAIM A TAX DEDUCTION FOR THEM?
Unfortunately, no. Revenue have now clarified that where employees provide their own business equipment, no tax deduction is available.
Coll & Co offer financial and taxation advice for individuals or groups of employees on topics such as tax-saving opportunities, share plans, estate planning etc.
Contact us for a consultation. Tel: (091) 592 080 Email: info@coll.ie
Web: www.Coll.ie