Dáil Éireann Debate, Wednesday - 14 September 2022
167. Deputy Ged Nash asked the Minister for Finance the cost to the Exchequer of increasing the remote working from home relief from €3.20 per day to €5 per day; and if he will make a statement on the matter. [44705/22]
View answerAs the Deputy is aware, there is a Revenue administrative practice in place that allows employers to pay a tax-free amount of €3.20 per day to employees who work remotely and satisfy certain conditions. As this payment is made tax free, details of the number of employees involved is not available. As such, I am advised by Revenue that it is not possible to provide an estimated cost to the Exchequer for increasing the tax-free payment from €3.20 to €5 per day.
It should be noted that any amounts paid exceeding the €3.20 daily rate are subject to tax, PRSI and USC in the normal manner.
If the employer does not make a payment of €3.20 per day, (or pays less than €3,20 per day) Remote Working Relief can be claimed, deducting any payment made by the employer.
As the Deputy will also 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, Remote Working Relief provides 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.
