Written answers

Tuesday, 30 June 2020

Department of Finance

Covid-19 Pandemic Supports

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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54. To ask the Minister for Finance the supports and or tax credit support PAYE workers can avail of as a result of having to use their primary residence as a workplace during Covid-19 restrictions; and if he will make a statement on the matter. [13207/20]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that while working remotely does not entitle PAYE workers to a tax credit, there is a Revenue administrative practice in place relating to e-workers who incur certain expenditure in the performance of the duties of their employment from home. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-workers.  

e-Workers will incur certain expenditure in the performance of their duties from home, such as additional heating and electricity costs. Revenue allows an employer to make payments up to €3.20 per day to employees, subject to certain conditions, without deducting PAYE, PRSI or USC.

Revenue has also advised me that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a Benefit-In-Kind charge, where the equipment is provided primarily for business use. The provision of a telephone line, broadband and such facilities for business use will also not give rise to a Benefit-in-Kind charge, where private use of the connection is incidental.

Where an employer does not pay €3.20 per day to an e-worker, I am advised by Revenue that employees retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act 1997 in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment. PAYE employees are entitled to claim costs such as additional light and heat in respect of the number of days spent working from home, apportioned on the basis of business and private use. PAYE workers can claim e-working expenses by completing an Income Tax return at year end by logging into the myAccount facility on the Revenue website.

Finally, I am advised that Revenue have published detailed guidance on this subject and on the question of how claims for e-working expenses should be calculated and submitted - see  their Tax and Duty manual TDM 05-02-13 e-Working and Tax, which is available on their website.

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