Wondering about your rights to keep e working?
Here’s what you need to know to stay safe, keep others safe, and handle your taxes.
Earlier this year, COVID-19 disrupted the whole world. It transformed the way we do things, quite possibly forever.
One of the most immediate changes was the transition from working in an office to e-working. This change sparked questions about what e-working will mean for employees regarding their taxes.
If you have questions about what e-working means for your finances, keep reading to find out how to get your tax back while working from home.
Many people may not realize that there are employee rights that protect them while working from home. When it comes to taxes, contrary to popular belief, e-workers can request a tax refund for employment expenses, as long as they meet the required criteria.
Employees can only deduct their home workspace if working from home is based on the convenience of the employer, and not employee preference.
This convenience must either be a condition of employment or necessary for business needs.
There must be a valid reason as to what caused the employee to have to work from home. Since COVID-19 was beyond anyone’s control, it does constitute as a valid business reason.
Do I Qualify As An E-worker?
E-workers are those individuals who work from home on a full time or part-time basis.
You qualify as an e-worker if you meet the following criteria:
- There is a formal agreement between the employer and employee, where the employee is required to work from home.
- The employee performs a substantive duty of their employment at home which is as per the employer’s requirement.
- The employer requires the employee to work from home for substantial periods.
You are not entitled to claim tax relief if you bring work home from the office outside of normal working hours, for example in the evenings or at weekends.
How Much Can Be Claimed?
During the work from home period, you may have extra costs on certain home expenses. Your employer can pay you an allowance towards these expenses or you can claim tax relief on the expenses incurred at the end of the year.
When 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 and if the allowance paid by the employer is more than €3.20 per day, tax (includes PRSI and USC) should be paid as normal to the amount above €3.20.
When your employer does not pay you an allowance, you can make a claim for tax relief on the expenses at the end of the year.
Your tax refund will be based on:
- The number of days you worked from home.
- The cost of the expenses
- Revenue’s rate for calculating the cost of running a home office.
Revenue’s rate for the cost of running a home office is 10% of the total cost of utility expenses, for the days that you worked from home and this does not include the days that you brought work from home outside your normal working hours.
What Expenses Can Be Claimed?
E-worker relief is tax relief on expenses that people may incur while working from home. These expenses include the following:
- additional broadband costs
- Additional electricity costs
- Additional heating costs
You do not have to pay tax on equipment provided by your employer for the purpose of performing your duties at work.
Tax Back Claiming Methods
You can apply to us to claim your tax refund by filling out our 1-minute tax rebate form.
You can also do this directly from the revenue’s online system.
Why applying to us is your best choice
- We will make sure that you receive the maximum tax refund by maximizing your tax credits.
- We make sure that all the possible tax relief has been claimed, these include claiming tax relief on your medical expenses, dental expenses, flat rate expenses, and others.
- Our average tax refund is €1060.
Get The Most Out Of E-Working
COVID-19 may have drastically changed your work-life, but there are ways to make sure that you get the most out of your e-working experience.
This starts by knowing and understanding your rights as an employee. Make sure there is a clear reason as to why working from home is for the betterment of the company.
Know the work from home parameters when filing.
Always keep detailed records of your working conditions. Recording your designated work areas and expenses as you go will make for an easy process when submitting your tax rebate inquiry.
E-working can be both a relief and a tax break once you understand the rules.
Still have questions? Contact us today to see how we can help you get your tax rebate.
Claire Garvey 2020-11-02
Do I have to wait until Oct 2021 to claim for e-worker tax relief during the COVID period (Mar-Dec 2020)? I do not receive any allowance from my employer.
Hi Claire. Sorry for the late response. No, you can claim it now.