The Chief Inspector of Taxes has issued a guide to e-working and tax. E-working is defined by the Revenue as a method of working using information and communication technologies in which work is carried out independent of location.

Where an individual's employer provides computers and other equipment for working at home, a benefit in kind charge will not be imposed on the employee in respect of incidental private use.

Distance workers will incur certain expenditure in the performance of their duties at home, such as additional heating and electricity costs.

Revenue will allow an employer to make payments of up to £2.50 per day to employees without deducting PAYE and PRSI.

This does not prevent an employee making a specific expenses claim where the actual expenditure is greater than this amount. Where an e-working employee uses any part of his or her home for e-work purposes, the capital gains tax exemption for principal private residences will not be restricted. These arrangements only apply to e-working employees. They do not extend to employees who, in the normal course of employment, bring some work home in the evening.