What do I tell my staff about the new working from home tax relief?

Before Budget 2022 was announced there was a commitment from Government to improve the working from home tax relief for employees.

Employers have the option to pay their employees €3.20 tax free for the days that they work from home.

Where the employer does not reimburse the employee for the costs of working from home then the employee is entitled to claim a portion of the cost of light, heat and broadband against their tax bill.

Budget 2022 confirmed that the current tax arrangements for working from home would be enhanced so that a tax deduction of 30% of heat, electricity and broadband costs can be claimed in respect of the days employees spend working from home.

The exact detail of the enhanced tax relief will be announced as part of the Finance Bill which is expected to be published towards the end of next week.

 

 

Date published 13 Oct 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.