Over €171 million remains unclaimed by Irish taxpayers for Remote Working Relief alone over the last two years. Only 10 per cent of remote Irish workers have availed of this tax relief to date, according to tax-back specialists, Irish Tax Rebates.
The Revenue Commissioners of Ireland have confirmed that only 58,157 claims have been received for working from home relief for 2021 at a value of €10.1 million, compared to 93,000 Working from Home claims in 2020 at a value of €13 million.
2022 reports show that 75 per cent of people working remotely are entitled to Remote Working Relief. A notable increase on 2021.
Increasing electricity and heating costs have had a significant impact on the utility bills of those working from home in recent months. Fortunately, they can claim back a proportion of these costs through the remote working tax credits.
"In line with current Revenue statistics, we have seen a 37 per cent drop in individuals claiming Remote Working Relief, despite the average working from home tax rebate increasing by 24 per cent," says Martin Brennan, managing director of Irish Tax Rebates. "We are working hard to ensure hard-working individuals do not overpay their Irish tax, with clients receiving an average tax rebate to the value of €1,092."
Are you eligible?
If you are working from home, either fully remote or operating on a hybrid model, you may be able to qualify for this tax relief.
Claiming remote working relief
There are two separate ways to get your tax back for working remotely.
- Your employer may choose to provide a tax-free contribution of up to €3.20 per workday to you as repayment for your expenses.
- If your employer does not reimburse you, you must claim it back as part of your annual tax rebate.
What can you claim for?
If you are not getting reimbursed by your employer, you can claim back up to 10 per cent of your electricity and heating costs, and 30 per cent of your broadband expenses.
Your claim must be in proportion to the number of days you have worked at home, as opposed to claiming against the total annual expense of these utility costs.
With utility bills increasing substantially, so too could the size of your tax rebate.
Steps to claim WFH tax credits
Step 1: Make note of the total number of days you worked from home last year.
Step 2: Calculate the annual bills for your electricity, heating, and broadband.
Step 3: Complete the 60-second form with Irish Tax Rebates and they will maximise your tax rebate for you.
Irish Tax Rebates have been in the tax rebate business for over 20 years and are trusted by 320,000 customers in Ireland. Their team of tax accountants understand the tax system in great detail and will claim back the maximum amount of tax to which you are entitled. They will request the above information from you and will assess other tax credits that you could claim a rebate for, all tailored to your personal circumstances.