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Covid-19 Pandemic

Dáil Éireann Debate, Tuesday - 8 September 2020

Tuesday, 8 September 2020

Questions (274)

Alan Kelly

Question:

274. Deputy Alan Kelly asked the Minister for Finance his plans to assist workers with the higher household costs that arise from remote working arrangements in view of the increased prevalence of remote working as a result of the Covid-19 pandemic, for example, by raising the threshold of up to €3.20 per day which is payable by employers relating to increased costs due to remote working or by altering the amount claimable by workers under section 114 of the Taxes Consolidation Act 1997 in situations in which employers do not make the payment; and if he will make a statement on the matter. [21099/20]

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Written answers

Revenue operate an administrative practice relating to e-Workers (or remote workers), who incur certain expenditure in the performance of the duties of their employment from home. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-Workers.

Remote workers will incur certain expenditure in the performance of their duties from home, such as additional heating and electricity costs. Revenue allow an employer to make payments up to €3.20 per day to employees, subject to certain conditions, without deducting PAYE, PRSI, or USC.

Where an employer does not pay €3.20 per day to an e-Worker, or where an employee incurs costs in excess of the €3.20 per day paid by the employer, the employees concerned retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act 1997 in respect of actual vouched expenses they have incurred wholly, exclusively and necessarily in the performance of the duties of their employment. PAYE employees are entitled to claim costs such as additional light and heat in respect of the number of days spent working from home, apportioned on the basis of business and private use.

PAYE workers can claim e-working expenses by completing an Income Tax return at year end by logging into the myAccount facility on the Revenue website.

Revenue also advise that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a Benefit-In-Kind charge, where the equipment is provided primarily for business use. The provision of a telephone line, broadband and such facilities for business use will also not give rise to a Benefit-in-Kind charge, where private use of the connection is incidental.

Revenue have advised that they have published a Tax and Duty Manual entitled ‘e-Working and Tax’ on their website: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf . It contains detailed guidance on the subject of e-Working and tax and includes guidance for taxpayers on how to calculate and submit claims for expenses relating to e-Working.

I would like to acknowledge the flexibility that has been shown by both workers and employers in respect of working from home, and note that while some additional costs may be incurred for households there may also be savings; for example from reduced commute costs. I am satisfied that the existing provisions of the tax code are sufficient to take account of the changing nature of the work environment at present, but will continue to keep this matter under review.

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