You’ve been working from home for months, maybe years. Your electricity bills have jumped. Your heating runs all day. Your broadband strains under endless video calls. Yet you haven’t claimed a single euro of tax relief for working from home.
Here’s the reality that might surprise you: According to Citizens Information, Ireland’s working from home tax relief offers two straightforward paths – your employer can pay you up to €3.20 per day tax-free (€768 annually), or you can claim tax relief on 30% of your electricity, heating, and broadband costs.
With recent data showing 45% of Irish professionals working hybrid and 15% fully remote, nearly two-thirds of the workforce could claim this tax relief. Most don’t. Today, you’ll discover exactly how to claim working from home tax relief and maximise your tax savings.
What Is Working From Home Tax Relief in Ireland?
Working from home tax relief acknowledges that your home has become your office, with all the additional costs of working from home that entails. This e-worker tax relief helps offset increased utility bills when you work remotely.
Remote working relief comes in two forms – and you need to choose one:
Option 1: Employer Working From Home Allowance – Your company pays you €3.20 per day (€768 per year) completely tax-free. No income tax, no USC, no PRSI on this allowance.
Option 2: Remote Working Tax Relief – You claim tax relief yourself on 30% of utility costs for electricity, heating, and broadband, apportioned to days working from home. Your tax savings depend on your rate of income tax (20% or 40%).
The relief in Ireland operates under Section 114A of the Taxes Consolidation Act, making it permanent tax policy rather than temporary support. Whether you’re an employee or remote worker, understanding both options ensures you claim the maximum tax relief available.
Am I Eligible for Working From Home Tax Relief?
Qualifying Criteria for Remote Working Relief
Not everyone who occasionally works from home qualifies for e-worker tax relief. Revenue requires three specific conditions:
- An arrangement with your employer – This arrangement for working from home doesn’t require formal contracts. Even email confirmation suffices. But you need something demonstrating official remote working, not just deciding to skip your commute.
- Substantial periods working from home – You must work from home regularly, performing substantive duties like logging onto work systems, sending work emails, or developing products remotely. Think regular pattern, not random days.
- Actually performing your job from home – You need to complete main work duties at home, not just finishing bits after normal working hours.
Both employees working from home and self-employed individuals can claim tax relief, though rules differ slightly. The relief applies whether you work at home full-time or split your working days between home and office.
What Doesn’t Qualify for E-Worker Tax Relief?
Revenue draws clear lines about what doesn’t qualify for working from home relief:
You cannot claim relief if you bring work home outside normal working hours. Evening email sessions after a day in the office? Not covered. Weekend report writing? No tax relief. If you brought work home to do outside regular hours, that’s overtime, not remotely working from home.
Other exclusions for claiming working from home tax include:
- Public holidays (those 10 bank holidays)
- Annual leave (even if checking emails)
- Sick days working from bed
- Random days when you work home because the plumber’s coming
The pattern matters for remote working relief. Regular hybrid working beats random days scattered throughout the tax year.
Two Ways to Get Tax Relief When Working From Home
1. Employer Tax-Free Working From Home Allowance (€3.20 Daily)
Your employer can pay this working from home allowance without you paying any tax on it. The €3.20 per day allowance totals €768 per year tax-free, flowing straight into your pay packet – no forms, no receipts, no waiting until the end of the year.
The calculation for this tax allowance stays simple:
- Work from home 2 days weekly? That’s roughly €320 annual tax relief
- 3 days weekly? €480 in working from home allowance
- Full-time remote working? The full €768 allowance
Remember: employers aren’t legally required to pay this working from home allowance. But many companies implemented these payments during the pandemic. Ask your HR department – the worst they can say is no. If your employer offers more than €3.20 daily, you’ll pay tax on the excess, though it’s still worth taking.
2. Revenue Remote Working Relief (Utility Claims)
When your employer won’t pay the allowance, or your actual costs of working from home justify a bigger claim, you can claim remote working relief directly from Revenue.
You can claim tax relief on 30% of electricity, heating, and broadband costs for days you spent working from home. The relief works at your marginal tax rate:
- Pay income tax at 20%? You get tax relief of 20% on the eligible amount
- Pay tax at 40%? You get 40% tax back
For example, working from home 150 days with €2,500 annual utilities:
- Calculate proportion: €2,500 × (150 ÷ 365) = €1,027
- Apply 30%: €1,027 × 30% = €308
- Get tax relief: €308 × your income tax rate
You’d get €62 tax back at 20% or €123 at 40%. While not massive tax savings, every euro helps with the additional costs of working from home.
What Expenses Can I Claim for Working From Home?
Eligible Costs for Remote Working Tax Relief
Revenue keeps work from home expenses simple. Three categories qualify for tax relief:
Electricity – Every device charged, every light used during home working qualifies. Revenue accepts 30% of electricity bills relate to work.
Heating – Whether gas, oil, or solid fuel, keeping your workspace warm counts as costs of working from home. Relief for electricity and heating combined can add up significantly.
Broadband – Essential for remote working. Even bundled services qualify – you can extract the broadband portion to claim tax relief.
For bundles, if your provider breaks down costs, use those figures. Otherwise, make “reasonable apportionment” – generally splitting the bundle equally between services works for your tax relief calculation.
Non-Claimable Work From Home Expenses
Capital items like laptops, computers, office equipment, and furniture are not allowable home expenses for tax relief.
Also excluded from working from home tax credit:
- Mortgage or rent
- Home insurance
- Mobile phone bills
- Coffee (despite being essential!)
- Ring lights for video calls
- Office supplies
Revenue views these as capital items or personal choices rather than necessary additional costs of working from home.
How to Calculate Your Tax Savings from Working From Home
Step-by-Step Tax Relief Calculation
Revenue’s formula for calculating working from home tax relief looks complex but breaks down simply:
Step 1: Add annual utility costs (electricity + heating + broadband)
Step 2: Calculate proportion for days working from home (Total × Working days ÷ 365)
Step 3: Apply 30% rate for tax relief
Step 4: Subtract any employer allowance received
Step 5: Calculate your tax savings (Result × your tax rate)
This tax relief calculation ensures you claim the correct amount based on days worked at home. Getting these calculations right is part of good financial management – something that financial wellness programs for SME employees emphasise as crucial for overall financial health.
Examples for Different Working Patterns
Full-Time Remote Worker You work from home 230 days (excluding holidays). Utilities total €2,800.
- Proportion: €2,800 × (230 ÷ 365) = €1,764
- Allowable: €1,764 × 30% = €529
- Tax relief at 40%: €212 tax back
Hybrid Worker Working from home Tuesdays and Thursdays (100 working days). Utilities €2,400.
- Proportion: €2,400 × (100 ÷ 365) = €658
- Allowable: €658 × 30% = €197
- Tax relief at 20%: €39 tax savings
Part-Timer with Employer Allowance Three days working from home weekly (150 days) receiving €3.20 daily from employer. Utilities €2,600.
- Proportion: €2,600 × (150 ÷ 365) = €1,068
- Allowable: €1,068 × 30% = €320
- Less allowance: €320 – (€3.20 × 150) = -€160
- Tax relief: €0 (employer allowance exceeds claimable amount)
This shows why the employer working from home allowance typically beats claiming working from home expenses yourself.
How to Claim Working From Home Tax Relief in Ireland
Real-Time Claims During the Tax Year
You can now claim relief during the year using Revenue’s myAccount, getting real-time tax credits that increase monthly take-home pay – no waiting until the end of the tax year.
Your action plan to claim tax relief:
- Log into myAccount
- Navigate to ‘PAYE Services’
- Find ‘Receipts Tracker’
- Upload utility bills
- Select ‘Remote Working Relief’
- Enter days you spent working from home
- Submit your claim
Revenue processes claims quickly. You’ll get increased tax credits in your subsequent pay, meaning more in your monthly payslip. This tax relief during the year helps manage higher utility bills immediately. The shift to digital claiming represents how digital transformation is revolutionising accounting practices for Irish SMEs, making tax processes more efficient for everyone.
End-of-Year Income Tax Return Claims
The traditional year-end approach to claim working from home tax still works:
Sign into myAccount, select ‘Review your tax for previous 4 years’, complete your Income Tax Return, navigate to ‘Tax Credits and Reliefs’, select ‘Your job’ then ‘Remote Working Relief’.
Upload utility bills (Revenue requires evidence), and once submitted, refunds typically arrive within 1-2 weeks. This income tax return method suits those preferring to claim the relief annually rather than monthly.
Required Documentation and Record-Keeping
Revenue requires clear, readable receipts showing bill amounts paid. Keep these documents for claiming working from home relief:
- All utility bills
- Proof of payment if bills aren’t in your name
- Employer confirmation of remote working arrangement
- Record of days worked at home
Upload everything to Revenue’s system – once uploaded, you needn’t keep physical copies for six years. Revenue stores them, simplifying your tax return process. This documentation isn’t just about compliance – proper record-keeping is essential for risk management, something accountants increasingly help Irish SMEs navigate. Good records protect you during Revenue audits.
Common Mistakes That Reduce Your Tax Relief
After years helping clients claim working from home tax, these expensive mistakes appear repeatedly:
Forgetting utility components – People remember electricity but forget heating oil or that broadband qualifies for tax relief.
Including non-qualifying days – Those 104 weekend days don’t count for working from home relief, regardless of Sunday emails sent. Neither do annual leave or bank holidays.
Not requesting employer allowance first – The €3.20 daily allowance almost always beats claiming expenses yourself. Ask HR about your company’s working from home allowance policy.
Missing deadlines – You can claim back to 2021, but that window closes December 31, 2025. Don’t leave tax savings unclaimed.
Double-claiming – If your employer pays €3.20 for certain days, you cannot also claim tax relief for those same days working from home.
Claiming equipment – Standing desks and ergonomic keyboards aren’t covered work from home expenses for tax purposes.
Remote Working Tax Relief for Special Situations
Hybrid Workers and Flexible Arrangements
Most Irish employees who work from home are actually hybrid, and the relief handles this perfectly. Work home Monday, Wednesday, Friday? Count those working days (probably 150 annually) and claim proportionally.
Consistency matters to Revenue. Regular patterns beat random flexibility. If your schedule varies, keep detailed records of days working from home. A simple spreadsheet noting work-from-home days saves headaches at tax return time.
Shared Accommodation and Multi-Earner Households
Living with roommates? Each person can only claim their actual share of bills. Four people sharing equally? You claim one-quarter for your remote working relief.
For couples both working from home, each calculates relief separately based on individual working days. If jointly assessed for income tax, one person claims the combined amount. Two remote workers working 150 days each could potentially claim relief on full utilities for those days.
Maximising Your Working From Home Tax Savings in 2025
Want every legitimate euro of tax relief for working from home? Here’s your strategy:
Pursue the employer allowance first. Even if your company hasn’t mentioned it, ask HR directly. Many have policies for working from home allowance but don’t advertise them. The €3.20 daily almost always beats claiming actual expenses.
Backdate claims immediately. You may be able to claim for 2021, 2022, 2023, and 2024 if you haven’t already – potentially €500-800 in tax rebate waiting. Remember: 2021 claims must be submitted by December 31, 2025.
Use real-time credits for better cash flow. Why wait until end of the tax year for your refund? Claim during the year and get tax relief monthly instead.
Track everything meticulously. Create a spreadsheet: dates actually worked from home, utilities paid, amounts. This helps calculate your tax savings accurately.
Consider your overall tax position. Remote working relief stacks with other credits – medical expenses, tuition fees, pension contributions. Claim everything you’re entitled to claim tax relief on. Whether you’re running an established business or just starting out, maximising every available relief matters – it’s one of the ways accountants help startups succeed from their very first tax year.
Frequently Asked Questions About E-Worker Tax Relief
Can I claim for previous years?
Yes, you can claim back four tax years. For the 2021 tax year, you must claim by December 31, 2025. Many employees in Ireland have several hundred euros in unclaimed tax relief.
What if I only occasionally work remotely?
Occasional home working doesn’t qualify. You need regular patterns – even one day weekly consistently works, but random days won’t qualify for relief.
How much will I actually get back?
Most workers receive between €50-€384 annually, depending on utility costs, days spent working from home, and income tax rate.
Do I need receipts for everything?
For the €3.20 employer allowance, no receipts needed. For claiming actual expenses, yes – upload utility bills to Revenue’s system for your tax return.
What if my employer provides equipment?
Equipment from your employer for business use isn’t taxed as benefit-in-kind. But you cannot then claim relief for buying similar equipment yourself.
Can self-employed claim this relief?
Self-employed individuals have different rules and can potentially claim more through business expense deductions for home working. However, be careful about claiming “exclusive business use” – it can trigger Capital Gains Tax issues.
Does this affect other tax credits?
No, remote working relief adds to standard credits. You still get personal tax credit, employee tax credit, and other applicable reliefs.
What if I move house during the year?
Calculate separately for each address based on days worked and utilities paid. Keep bills from both for your income tax return.
How long does the tax rebate take?
Online claims typically process within 1-2 weeks, then 3 working days for bank transfer. Real-time credits apply to your next payslip.
What triggers a Revenue audit?
Claiming excessive amounts, inconsistent day counts, or obvious errors like claiming 365 days when you took leave. Be accurate – the amounts rarely justify creativity.
Get Professional Help With Your Remote Working Tax Relief Claim
While remote working tax relief isn’t particularly complex, many people still leave money unclaimed. Whether it’s uncertainty about eligibility, confusion over calculations, or simply not having time for Revenue’s systems – professional help ensures you’re maximising every legitimate euro of tax relief available.
At Coffey & Co, we don’t just process your claim for the days you worked from home. We review prior years, identify missed opportunities, and handle all Revenue correspondence. More importantly, we examine your entire tax position – remote working relief might be worth €150, but what about those medical expenses? That pension contribution room? The flat-rate expenses for your profession?
Ready to stop leaving money with Revenue?
Our team specialises in ensuring Irish workers and businesses claim every cent they’re entitled to claim when working from home. With over 35 years’ experience, we’ve seen every situation imaginable.
Call us today on +353 61 418560 or email info@coffeyandco.ie.
Your first consultation is free – we’ll quickly assess what tax relief you’re missing and explain exactly how we can help. No jargon, no pressure, just straight talk about maximising your tax savings.
