Tax Tips

Working From Home Tax Relief – Claim Your Tax Rebate

Remote working can be liberating for many employees in Ireland – but working from home can also raise the cost of your energy bills. By claiming working from home tax credits, you can make some savings on these rising costs.

In the last two years, €171 million in tax remains unclaimed by Irish taxpayers for Remote Working Relief alone! This is because only 1 in 10 remote workers are claiming these tax credits.

Revenue has confirmed that only 58,157 applications for WFH relief have been received for 2021, totalling €10.1 million. This is down from 93,000 claims totalling €13 million in 2020.

Statistics show that in 2021, 75% of e-workers working remotely are eligible for Remote Working Relief. This represents a significant increase from the previous year’s figure of 25%. Despite this, there has been a 37% year on year drop in the volume of WFH tax relief claims.

With power and heating expenses skyrocketing in recent months, people who work from home are feeling the pinch on their utility bills. Fortunately, you can now receive a portion of the expenses back through remote working tax credits.

 

CONTENTS

Do I Qualify for The Working from Home Tax Credit?
Options for Claiming Working from Home Tax Allowance
What Expenses Can E-Workers Claim?
Steps To Claim WFH Tax Relief

 

Do I Qualify for The Working from Home Tax Credit?

Most people who work from home qualify for this tax credit, whether they work entirely remotely or on a hybrid model.

 

Options for Claiming Working from Home Tax Allowance

There are two ways to get your tax refunded if you work from home.

  1. Your employer may choose to reimburse you for your expenses with a tax-free contribution of up to €3.20 each workday.
  2. You must get it back as part of your annual tax rebate if your employer does not reimburse you.

 

What Expenses Can E-Workers Claim?

If your employer does not compensate you, you can claim back 10% of your power and heating expenses, as well as 30% of your broadband bills.

Rather than claiming against the overall annual value of these utility costs, your claim must be proportionate to the number of days you worked from home.

As your utility expenses continue to rise, so will the size of your tax rebate. Additionally, from 2022, the allowance for energy and heating bills will increase from 10% to 30% – increasing your rebate amount further still.

 

Steps To Claim WFH Tax Relief

  1. Identify how many days you worked from home last year.
  2. Calculate your annual electricity, heating, and broadband bills.
  3. Fill out our 60-second form, and Irish Tax Rebates will take care of the rest.

 

Irish Tax Rebates has over 20 years of experience in the tax rebate industry and has over 320,000 customers in Ireland. Our staff of tax accountants are very knowledgeable about the tax system and can help you claim the maximum amount of tax you are entitled to.

Existing customers: Apply for Working from Home Relief today.

New Customers: Sign up to Irish Tax Rebates here first.

 

 

Claim your tax back

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