Written answers

Tuesday, 19 October 2021

Photo of Paul McAuliffePaul McAuliffe (Dublin North West, Fianna Fail)
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382. To ask the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [51282/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As part of this year's Budget, I announced that the current concessional tax arrangements for working from home will be enhanced and formalised into legislation from 2022 onwards. An Income Tax deduction is proposed amounting to 30% of the cost of vouched expenses for electricity, heating and internet services for days spent working from home for remote workers.

By way of background information, Revenue currently operates an administrative practice, set out in its e-Working guidelines, to provide relief for remote workers who incur certain expenditure in the performance of the duties of their employment from home.  A tax deduction is provided for e-Workers for vouched expenditure incurred for electricity and heating at 10% of the cost, apportioned according to the number of days worked from home in the year.  Additionally, Revenue is willing to accept that 30% of the cost of broadband, apportioned according to the number of days worked from home over the year, can also be claimed.

However, 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.

A combination of both legislative provisions and administrative practices provide relief for remote workers who incur certain expenditure in the performance of the duties of their employment from home.  Employers are also currently permitted to make payments of 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. Furthermore, 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.

Finally, I am advised that Revenue practice is that where an e-Working employee uses any part of his or her home for remote work purposes, the CGT exemption for Principal Private Residences will not be restricted and, in addition, that there is no reduction of LPT due on a residential property in relation to the owner using a room in his or her home to carry out work-related activities. Detailed information on Revenue’s operation of remote working practices, including the policy in relation to CGT and LPT are available at .

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