Working from Home? Claim 30% of your Broadband Expenses?

Great news for all of you working from home! The 2021 Budget announced that e-workers can claim up to 30% of your broadband bill, along with 10% of your electricity and heating bill. 

This return is provided in the form of tax relief for anyone who has been asked to work from home (also known as remote working or e-working) during the Covid19 pandemic, starting from tax year 2020.

This scheme by the government has been in place for several years now. However, with the huge rise in e-workers, many were uncertain if this scheme would be continued in 2020 with more than 60% of employees in Ireland working remotely during the Covid19 pandemic.

Employers can choose to pay a contribution of €3.20 every day tax-free towards their employees working from home expenses. However Employers are not legally obliged to do so. This tax refund was put in place to support those who do not receive this contribution.

Even for those who do receive payment from their employer, if 30/10% of the expenses surmount the amount provided by your employer they can avail of this tax relief.

The tax relief takes into account that these utility expenses support everyone in the home, and the refund will be based on the portion of the expense that applied to the individual’s own personal expense.

Tax Relief is based on..

  • Cost of your expenses
  • The agreed rate by revenue: broadband 30% other expenses 10%
  • Amount of days working remotely
  • A formal agreement with your employer that you will be working from home, possibly a letter

What you need to do:

  • Keep a receipt of your all expenses paid that you wish to claim
  • Excess your myAccount on revenue.ie
  • Review your tax > Income Tax Return > Tax Credits and Reliefs page > PAYE Expenses > Amount Claimed section

For more information check out the article by TaxBack.com

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