Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Remote working or e-working is defined by the Revenue Commissioners as when an employee works from his or her home on either a full-time or part-time basis, with the remainder of time spent in the normal place of work or working while on the move, with visits to the normal place of work. E-working involves working for substantial periods outside the normal place of work, logging on to a work computer remotely, sending and receiving email, data or files remotely, or developing ideas, products and services. E-working does not apply to workers who bring work home outside of their normal working hours.

While working remotely does not entitle e-workers to a tax credit, there is a Revenue administrative practice, which has operated since the early 2000s, which takes account of certain expenditure incurred by e-workers in the performance of their duties of employment from home including, for example, additional heating and electricity costs. Employers can make payments of up to €3.20 per day to their employees without deducting PAYE, PRSI or USC. This does not, however, prevent an employee who works remotely from making a specific expenses claim to Revenue where the actual expenditure incurred is in excess of this amount. These deductions are allowed to employees under the provisions of section 114 of the Taxes Consolidation Act 1997, which provides for tax deductions incurred wholly, exclusively, and necessarily in the performance of the duties of employment. Furthermore, employers may provide equipment to an e-worker for business use without the application of benefit-in-kind where private use of that equipment by the employee is minimal. Examples of such equipment include computers, laptops, printers, scanners, telephones, broadband, office furniture, and software which allows the e-worker to work from home. If an employee uses part of his or her home for e-working, the exemption from capital gains tax regarding the principal private residence will not be affected.

Having regard to the arrangements operated by Revenue, which I have just outlined, and to the fact that the introduction of a tax credit as proposed by the Deputy could potentially increase the proportion of earners who are exempt from income tax and result in a narrowing of the income tax base, I do not propose to accept the amendment.

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