Dáil Éireann Debate, Tuesday - 22 February 2022
27. Deputy Neale Richmond asked the Minister for Finance if he will consider raising the €3.20 per day work from home allowance given the rise in the cost of electricity and utility bills; and if he will make a statement on the matter. [9457/22]
View answer73. Deputy Alan Dillon asked the Minister for Finance if consideration will be given to additional tax relief measures in budget 2023 for those working from home; and if he will make a statement on the matter. [9669/22]
View answerI propose to take Questions Nos. 27 and 73 together.
Where e-workers incur certain extra expenditure in the performance of their duties of employment remotely or from home, such as additional heating and electricity costs, there is a Revenue administrative practice in place that allows an employer to make payments up to €3.20 per day to such employees, subject to certain conditions, without deducting PAYE, PRSI, or USC.
Revenue is statutorily independent in the performance of its functions under, or for the purposes of, tax laws. Consequently, I am precluded from giving any direction or instruction to Revenue in regard to the review of any threshold relating to e-working.
However, Revenue advises me that there are currently no plans to increase the €3.20 allowance. The value of relief allowed under the administrative arrangements is already considered sufficient to cover any legitimate additional costs incurred by workers. The level of support allowed also compares favourably internationally.
As the Deputies will be aware, in the Finance Act 2021, I enhanced and formalised the tax arrangements for working from home in line with Government policy to facilitate and support remote working. Accordingly, 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 their marginal tax rate. This measure will provide some relief for those with additional expenses arising from working from home.
While I have no immediate plans to increase the tax relief for working from home, I would point out that the Government recently announced a €505 million package of measures to mitigate the cost of living, including a once-off energy credit of €200 including VAT. These measures will support all payers of domestic electricity bills to help to off-set rising prices. This is a measure that will benefit all households regardless of whether they have an income tax liability or not.
