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remote working relief

How to claim tax back for energy if you worked at home in 2022

While it is possible to claim the relief in real time, remote workers can also make their 2022 claim from today.

EMPLOYEES WORKING FROM home are able to claim back 30% of their utility bills against their tax.

This figure was 10% in 2021, but increased to 30% last year.

The Remote Working Relief is in respect of the provision of electricity, heating or broadband in a “qualifying residence”.

A qualifying residence is defined by Revenue as a “residential premises that is also used by the remote worker to perform the duties of his or her employment”. There is no relief available to employees for the use of a remote working hub.

The relief is apportioned on the number of days an employee spent working from home over the year and any remote working reimbursements paid out by your employer is deducted.

While it was possible to claim this relief throughout the course of last year, remote workers can also make their 2022 claim from today.

This is done by completing an Income Tax Return.

A document from the Revenue Office explains: “The total amount of relief received in respect of a year of assessment will be the same, irrespective of whether the relief is claimed in year or following the end of the year of assessment.

It adds that the “only difference is one of timing”.

How is it calculated?

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

Meanwhile, the Remote Working Relief calculation will offset any reimbursements by your employer.

It can seem complicated, but here is how it is worked out.

The Remote Working Relief uses a formula that multiplies your utility bills by the number of remote working days.

This figure is then divided by 365 (or by 366 in a leap year), and then multiplied by 30% (0.3).

Meanwhile, any remote working allowance reimbursed by your employer is deducted from the above figure.

It sounds complicated, but Revenue provides a few examples of how it all adds up.

Take Jane. Last year, she worked 50 days from home and the cost of her electricity, heating and broadband for 2022 was €1,890.

So using the formula provided, Jane will be able to claim back €77.67:

  • €1,890 x 50 = €94,400
  • Divided by 365 = €258.90
  • Multiplied by 0.3 = €77.67

But recall that employers claim the relief against their tax.

Suppose that in the case of Jane, she pays the higher rate of 40%,

She will therefore receive 40% of the above figure, which equals €31.07.

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