Over €171 million remains unclaimed by Irish taxpayers for Remote Working Relief alone over the last two years.
Only 10% of remote Irish workers have availed of this tax relief to date, according to tax back specialists, Irish Tax Rebates.
The Revenue Commissioners of Ireland have confirmed that only 58,157 claims have been received for working from home relief for 2021 at a value of €10.1 million, compared to 93,000 Working from Home claims in 2020 at a value of €13 million.
“In line with current Revenue statistics, we have seen a 37% drop in individuals claiming Remote Working Relief, despite the average working from home tax rebate increasing by 24%” states Martin Brennan, Managing Director of Irish Tax Rebates. “We are working hard to ensure hard-working individuals do not overpay their Irish tax, with clients receiving an average tax rebate to the value of €1,092.”
2022 reports show that 75% of people working remotely are entitled to Remote Working Relief. A notable increase on 2021.
Increasing electricity and heating costs have had a significant impact on the utility bills of those working from home in recent months. Fortunately, they can claim back a proportion of these costs through the remote working tax credits.
Are You Eligible for The Work from Home Tax Credit?
Most people working from home nowadays, whether their arrangement is fully remote or operating on a hybrid model are generally eligible for this tax credit.
What is The Procedure for Reclaiming This Tax?
There are two ways to claim your tax back for working remotely.
Your employer may opt to provide a tax-free contribution of €3.20 per workday to you as repayment for your expenses.
If your employer does not reimburse you, you must claim it back as part of your annual tax rebate.
What Can You Claim For?
If you are not getting reimbursed by your employer, you can claim back 10% of your electricity and heating costs, and 30% of your broadband expenses.
Your claim must be in proportion to the number of days you have worked at home, as opposed to claiming against the total annual expense of these utility costs.
With utility bills increasing substantially, so too will the size of your tax rebate. In addition, commencing in 2022 there has been an increase in the allowance on electricity and heating costs from 10% to 30%. That said, with this increase, Revenue is likely to be making additional audits on amounts that exceed their standard claim threshold.
How Do I Claim These Tax Credits?
Step 1: Make note of the total number of days you worked from home last year.
Step 2: Calculate the annual bills for your electricity, heating, and broadband.
Step 3: Complete the 60-second form with Irish Tax Rebates and they will organise your tax rebate for you.
Read additional information on working from home tax rebates.
About Irish Tax Rebates
Irish Tax Rebates has been in the tax rebate business for over 20 years and is trusted by 320,000 customers in Ireland. Their team of tax accountants understand the tax system in great detail and can claim back the maximum amount of tax you are entitled to. They will request the above information from you and will assess other tax credits that you could claim a rebate for, depending on your personal circumstances.
Company: Irish Tax Rebates
Contact: Eoghan O Searcoid, Marketing Manager
Mobile: 087 108 2485