In recognition of the fact that e-workers can incur certain expenditure in the performance of their duties from home, such as additional heating and electricity costs, an employer may make a payment of up to €3.20 per day to such employees without deducting PAYE, PRSI or USC. However, this does not prevent an employee making a specific expenses claim under Section 114 of the Taxes Consolidation Act (TCA) 1997 where the actual expenditure incurred wholly, exclusively and necessarily in the performance of the duties of the office or employment is in excess of this amount.
Where such a specific expenses claim by an e-worker relates to the cost of utilities, section 886A of the TCA 1997 obliges taxpayers to retain appropriate records in support of the claim and to retain those records for a period of 6 years after the year of assessment to which the claim relates. As with most tax reliefs, claims are processed on a self-assessment basis but Revenue may select particular claims for verification check as part of its compliance management process.
