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Energy Bills

Employees working at home will be allowed claim back 30% of their energy bills against tax

Currently those working at home can only claim 10% against their gas and electricity bills.

EMPLOYEES WORKING AT home will be allowed to claim back 30% of their energy bills against their tax.

In his Budget 2022 speech, the Finance Minister Paschal Donohoe said many have experienced remote working during the pandemic, stating that it can become part of a better work/life balance. 

The government wants to facilitate and support remote work, he said, confirming that an income tax deduction amounting in 30% of the cost of vouched expenses for heat, electricity, and broadband. 

The rate you can currently claim is 10% of the total amount of utility bills against your taxes.

Donohoe said the increased measure will be formalised in the Finance Bill to be passed in the Dáil.

Tánaiste and business minister Leo Varadkar had previously flagged that workers could expect some kind of announcement today on how the government intends to promote remote working.

He said if someone is working from home, they incur costs, particularly utility costs. 

Speaking to reporters this afternoon in Government Buildings, Varadkar said workers can claim the 30% back if they have a hybrid work situation where they are splitting their time between the office and home.

He clarified that workers can claim the percentage back on their bills for the days they are working at home. 

The minister said the the daily working from home allowance that is paid by some employers remains in place, but has not been increased in the Budget. The rate currently stands at €3.20 and is an optional payment made by companies to cover costs incurred by their employees working from home.

Under the current rules, Revenue allows those working remotely to claim either the tax relief on the additional costs of working from home, including electricity and heat or opt for the employer daily payment, if it is available to them.

John Riordan, a director of support at Canadian e-commerce giant Shopify, said the Government’s decision is a step in the right direction.

Riordan has been working from his home in the Mizen peninsula for almost five years.

“The Government also said that remote work is a cornerstone of continued economic growth which is a strong statement,” he added.

“This is now the time to ensure that service and utility providers to take steps to facilitate this initiative.

“Thousands of people will start asking for an annual statement to claim tax relief, so let’s work now to enable that to go smoothly so we don’t end up having people scrambling around to try and claim tax relief and then having the benefit spoiled,” he said.

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