In his speech on the 2022 budget, Paschal Donohoe announced that workers who work from home can claim 30% of their energy bills back from their income tax.

Previously, the subsidy for remote work in relation to electricity and heating costs was 10%, provided that the person who works remotely does not claim a daily allowance of up to 3.20 euros per day from their employer.

Broadband funding has already been set at 30%.

The Treasury Secretary said the withdrawal will help standards of living as the Irish economy begins to recover from the Covid-19 pandemic.

How much is it worth

Following Tuesday’s budget announcement, Tánaiste Leo Varadkar said the 30% of utility spending will be 220 euros per worker per year.

Mr Varadkar said the new allowance will be prorated to allow those who choose to do hybrid work, with their time split between the office and home.

Brian Keegan, director of public policy at Chartered Accountants Ireland, however, said the changes are “tokenist and will be worth less than € 60 a year for many individuals.

The accountants estimate that the existing system, worth $ 20 a year to individuals, will rise to $ 60 and “barely offset” the increase in the cost of heating a home and paying for broadband, Keegan said.

What can I claim?

Those who work from home can claim the remote working allowance as long as their employer does not pay the € 3.20 daily allowance.

With the recent change in the working from home tax deduction, teleworkers can claim:

30% of the electricity and heating costs incurred (allocated according to the number of home working days in the year) 30% of the broadband costs, divided according to the number of home working days in the year. Income says any amounts paid by your employer must be deducted from the claim.

Those who work from home can claim the remote working allowance as long as their employer does not pay the € 3.20 daily allowance.

Capital goods that you have purchased, such as laptops, computers, office equipment, and office furniture, are not eligible costs.

Do i need receipts?

As with any other tax claim, if you work from home and want to apply for tax deduction, it is important to keep a record of the expenses that you want to claim.

It’s enough to keep all of your receipts and bills, but you may also need a letter from your employer to confirm that you work from home.

How do I claim it?

The 2021 tax deduction application can be made via the MyAccount portal on the Revenue website using the receipt tracker in the PAYE Services section.

Pictures of your receipts must be clear and legible and show that you paid the required invoice amount.

According to Revenue, “you must complete your 2021 income tax return at the end of the year to file a claim.”

Caitriona Allis, director of the Irish Association of Chartered Certified Accountants (ACCA), said the group is calling for “a leaner process for drawing these tax credits to support maximum drawdown by PAYE workers”.

Can I and my partner / roommate each claim the deduction if we both work in the same household?

According to Revenue, if the cost of energy and broadband are shared between two or more people, the entitlement can be shared based on the amount each person paid.

For more information on how this will be broken down, please visit Revenue.ie.