If you are working from home, you may be eligible for tax relief on expenses like light, heat, telephone and broadband.
If your employer pays you an allowance towards these expenses, you can get up to €3.20 per day without paying any tax, PRSI or USC on it. If your employer pays more than €3.20 per day to cover expenses, you pay tax, PRSI and USC as normal on the amount above €3.20.
If your employer does not pay you an allowance for your expenses, you can make a claim for tax relief at the end of the year. You will get money back from the taxes you paid.
Should I pay tax on equipment from my employer?
If your employer gives you equipment that you need to do your work, like a computer or printer, and you mainly use it for work, it is not considered a benefit in kind. This means that you do not have to pay any tax for receiving the equipment from your employer.
Capital Gains Tax
If you use only part of your home for e-working, your home remains your Principal Private Residence and you are not liable for CGT when you sell it.
Can I continue to work from home when the COVID-19 restrictions have been lifted?
You do not have a right to work from home. Your employment rights are primarily set out in your contract of employment. Some employees may have already written into their contract of employment that they can work from home for a number of hours or days per week. Those entitlements will remain the same.
Most contracts of employment have a requirement that the employee must appear at a designated place of work. It is also common for employers to have a right to change the designated place of work. In those circumstances, employers can insist on you returning to the workplace.
You should talk to your employer first to see if you can continue to work from home. This will vary between employers.
To discuss the above in further detail, please contact us