Working From Home Tax Relief 2023: Can You Claim It

Updated on 04/10/2023

min reading

Computer and cup of someone working from home

The government debates are finally over and homeworkers will be relieved to hear about the 30% working from home tax relief approved for heating, electricity, and broadband in the Budget 2022. But, is it enough, and how can you claim it?

On the 12th of October 2021, parliament announced that tax relief will be available for remote working in 2022. The timing couldn’t be better.

With the requirement to work from home being lifted on the 22nd of October, the expectation is for remote working to be a more permanent fixture.

Tánaiste and Minister for Enterprise, Trade, and Employment Leo Varadkar recently said that the pandemic has changed the business world and has shown new possibilities for remote working. He added that the Government wants to make remote working a permanent option in Ireland.

Mr Varadkar said:

“I hope we can learn something from what worked for workers and employers during that time and incorporate it post-Covid. We really want to see remote working become a permanent fixture of Irish working life. I hope employers are speaking to their staff to figure out what works best for them and the business as this phased return begins.”

What exactly is the working from home tax relief?

As many of us have noticed by working from home during this time, household costs have naturally risen. Obviously, with the higher energy and water use, but also with the necessity of a fast, reliable broadband connection in order to work efficiently from home.

The 30% tax relief will not only be a breath of fresh air for those impacted by the energy crisis, but it will also help those affected by the following recent broadband price increases:

Eir increased its broadband to an average of €6 a month in September, followed by their 2022 price increase announcement.
Vodafone Ireland announced an average increase of €5 a month.
Sky Ireland announced an increase on their TV bundles effective October 1st 2021 on top of their earlier April price increase.
Virgin Media increased its broadband plans to an average of €54 a month in March of 2021, with further increases likely in 2022.

A spokesman for Vodafone Ireland said the annual price increase “reflects our ongoing investment in upgrading our network and services and supporting the ever-growing demand we see from customers”.

He said that since entering the Irish market, the company has made a “significant investment in its network as well as in supporting technologies and infrastructure”.

This is indeed true as Vodafone launched SIRO back in 2015 as a collaboration between Vodafone and ESB. The goal is to provide faster and more stable broadband as SIRO broadband doesn’t rely on telephone wires.

SIRO Broadband can deliver download speeds up to 1 gigabit per second (that’s 1,000 megabits), truly revolutionising the broadband market in Ireland.

Since its inception, SIRO has laid over 9,000 km of its optic fibre and established over 402,000 connections. It is available via 16 different retail partners, including Vodafone, Blacknight, and Pure telecom.

Is 30% tax relief enough?

The key phrase in the Budget 2022 tax relief for working remotely is “for days spent working from home”. This clearly doesn’t mean a straight 30% off your monthly broadband or energy bill.

Let’s use Virgin Media’s €54 a month plan as an example. Should you work half the month from home, this would only equal 10 working days. The 30% discount would, therefore, only reduce your bill by €5.40. This is a lower refund than Virgin media’s price increase earlier in the year.

This government help will be welcomed by many in 2022; however, nothing will ever beat taking the time to compare the market to get a good energy and broadband plan for your home.

How can I save even more?

Despite the energy prices continually rising and broadband pricing seemingly following a similar trend, the best thing you can do is shop around for both.

Many energy providers offer fixed rates that protect you from any price increase for a set period. Broadband providers also do the same where you can choose a contract for up to 24 months at times.

Locking yourself into these tariffs today will protect you from any further price increases for both of these utilities, thus making your Budget 2022 an easy one to plan.

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How can I qualify for the 2022 tax rebate?

In order to qualify for the 2022 tax rebate, you must fulfil certain criteria, such as having a formal written agreement with your employer stating that you are required to work from home. Working from home can be classified as:

Undertaking work-related tasks consistently from home within your allocated shift time
Logging into your work accounts/computer remotely
Receiving and sending work files, emails and data remotely
Generally undertaking tasks directly related to your employment from home

A caveat, however, is that you must be told to work from home by your employer, as previously mentioned. If you choose to work from home yourself, despite having the option to work from your designated office or place of work, you will not be entitled to claim the tax rebate, as appropriate facilities have been made available.

How can I claim the tax rebate 2022?

Those wishing to avail of the working from home tax relief Ireland offers, you can do so in one of two methods:

Receive a working from home tax relief allowance from your employer
File for a tax relief claim at the end of the year

Those in receipt of an allowance from their employer can receive up to €3.20 for each day you have worked from home, without having to pay tax, PRSI or USC on it. If your employer exceeds €3.20 per day, tax, PRSI and USC apply. Employers, however, are not obliged to make this payment to their employees, and so you may have to file for a tax relief claim at the end of the year instead.

How is the tax rebate worked out?

As we have mentioned previously, a claim can be made to cover the costs of broadband, heating, and energy costs for those days that you have worked at home (to the value of 30%). To calculate what you are eligible to claim, the following calculation:

image of a magnifying glass inspecting a document

Total your annual broadband/energy/heating bill, and multiply this by the number of days you have worked from home (€500x150=€75,000 for example)
Divide the result by 365 (€75,000÷365=€205.47)
Divide the result by 100, and times by 30 to work out 30% (€205.47÷100=€2.05. €2.05x30=€61.64)

The final figure will be your tax relief 2022 entitlement. To claim this, head over to the Revenue website and complete an online application. On this site, you will also find further guidance on eligibility criteria, and assistance in filling out your application. For further details of tax calculations refer to the revenue.ie tax relief form