I propose to take Questions Nos. 103, 108 and 111 together. The programme for Government includes a commitment to facilitate and support remote working. As part of the national remote working strategy, in 2021, the tax strategy group reviewed the tax arrangements for remote working in respect of both employees and employers. That paper is now available on my Department’s website.
Taking into account all these different factors, as announced in budget 2022, the tax arrangements for remote working were enhanced and formalised in line with Government policy to facilitate and support remote working. Accordingly, for the tax year 2022, an income tax deduction amounting to 30% of the cost of vouched expenses for electricity, heat and broadband in respect of those days spent working from home can be claimed by taxpayers. The amount of the relief will depend on the particular circumstances of the remote worker in terms of the level of costs incurred and his or her marginal tax rate. However, this measure provides some relief for those with additional expenses arising from working from home. At the same time, it ensures that the traditional burden of employer-related costs are not transferred from the employer to the State and by doing so, to the wider body of taxpayers.
As Deputies will be aware, as the current deduction relates to a proportion of the cost of the relevant expenses, the amount that may be claimed will, of course, increase as the value of those expenses increases too. As Deputy Carroll MacNeill referenced a moment ago, the environment regarding working from home has, of course, changed over the past number of months for reasons the House well knows. I look forward to hearing the views of Deputies regarding the operation of this policy in the time to come.