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23 May 2022

83% of people working from home are missing out on tax relief

83% of People Working from Home are Missing Out on Tax Relief

83% of People Working from Home are Missing Out on Tax Relief

More than 8 in 10 people in Ireland’s new mobile workforce could be missing out on up to €100 per year by not claiming Work from Home tax relief. This is according to the latest Taxback.com taxpayer sentiment survey which sought to understand why most of those who work from home have not availed of the relief.

The tax refund specialists also questioned the understanding of 1,200 taxpayers from their own database of how the relief works in practice, and it was found that the majority (77%) do not fully understand its application when it comes to a house-share situation.

Barry Cahill of Taxback.com spoke of the findings: “According to a Revenue Tax Strategy Group (TSG) paper on working from home released in 2021, 875,000 people are estimated as having been remote workers. However, just 90,000 people made a claim for tax relief for working from home expenses as of May this year – so just 10% of those who are eligible."

In Taxback.com's survey, only 17% of the respondents who work from home said they had claimed the relief.

"We have been advising any clients working from home to collate their bills and claim this relief. Anyone not doing so is missing out on ‘free money’, and while the amounts may be small, it’s hard to understand why anyone would not want this money in their pocket instead of leaving it with the taxman.”

The Taxback.com survey asked:

Of those who have worked from home - have you claimed the working from home tax relief?
-          No I don’t claim/ haven’t claimed the relief (42%)

-          No, I haven’t claimed because I don’t really know how to (33%)

-          No, I haven’t claimed – no intention to do so (8%)

-          Yes, I have claimed (17%)

Remote workers are entitled to a tax-free payment of €3.20 per day from their employer to cover the additional costs of their utility and broadband bills. For those whose employers have not been in a position to make this payment, a claim on Remote Working relief allows people to claim back a portion of their utility and broadband bills for each day they work from home.

Remote working relief allows people to claim for tax relief of 10% of the cost of electricity and heating incurred and 30% of the cost of broadband occurred – apportioned over the number of days a person worked from home over the course of the year.

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