Ged Nash
Question:134. Deputy Ged Nash asked the Minister for Finance the estimated cost to the Exchequer of the e-worker tax relief for 2023; and if he will make a statement on the matter. [38628/22]
View answerWednesday, 13 July 2022
Questions (134)
Written answers
As the Deputy 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, 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. This relief is known as Remote Working Relief. 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.
At the time of Budget 2022, it was estimated that this measure would cost approximately €10 million in 2022 and €11 million in 2023.
As the Deputy may also be aware, employers may pay a tax-free amount of €3.20 per day to employees who satisfy the qualifying conditions for the Remote Working Relief. Revenue has confirmed that as this payment is made tax free, it does not have details of the number of employees involved. Any amounts paid exceeding the €3.20 daily rate are subject to tax, PRSI and USC in the normal manner. If employees claim Remote Working Relief, any payment by their employer for remote working expenses must be deducted from the claim.
Real time claims for Remote Working Relief became available on the 24th January 2022. I am advised by Revenue that for the year to June 2022, 1,401 individuals have submitted claims in ‘real-time’ in respect of Remote Working Relief. In monetary terms, relief of approximately €45,000 has been granted. It should be noted, however, that this is unlikely to be the final figure for such claims, as taxpayers have up to four years to claim expenses.