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E Working Allowance

February 10, 2021 e working 0 Comment

An employee can claim for allowable costs if these are not reimbursed by an employer.

       These are:

  • 10% of the cost of electricity and heat incurred (apportioned based on the number of days worked at home over the year)
  • 30% of the cost of broadband incurred, (apportioned based on the number of days worked at home over the year). This concession, commencing in the tax year 2020, will apply for the duration of the pandemic. 
  • Capital items such as laptops, computers, office equipment and office furniture purchased by you are not allowable costs

Calculation for 2020 and subsequent years.

Per Revenue to calculate your electricity and heat eWorking costs:

  • multiply your allowable utility bills by the number of eWorking days
  • divided by 365
  • multiply by 10% (0.1).

Per Revenue to calculate your broadband eWorking cost (2020 and subsequent years):

  • multiply your bill by the number of eWorking days
  • divided by 365
  • multiply by 30% (0.3).

 If the cost is shared between two or more people, it can be apportioned based on the amount each paid.

Remote Working Relief claim for 2020

Receipts and bills paid in 2020 can be uploaded using Receipts tracker your MyAccount. 

Complete your 2020 Income Tax Return via MyAccount.

  • On the ‘PAYE Services’ card Select ‘review your tax’ 2017-2020
  • Select the 2020 Income Tax Year and select submit
  • In ‘Tax Credits and Reliefs’ select ‘Your Job’ tab
  • Select ‘Remote Working Relief’
  • Enter total amount of electricity and heat bills paid by you in 2020
  • Enter total amount of broadband bill paid by your in 2020
  • Enter total amount of days you worked from home in 2020
  • Click Add, the Remote Working Relief will be automatically calculated
  • You must then confirm all the tax credits and reliefs claimed.

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Joe Cunnane Practice Owner TRA Professional Services       Qualifications:  FCA Chartered Accountant & AITI Chartered Tax Advisor Joe has over 20 years experience working in both private practice and industry ... Read More »