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Tax Credits

Dáil Éireann Debate, Tuesday - 22 September 2020

Tuesday, 22 September 2020

Ceisteanna (241)

Emer Higgins

Ceist:

241. Deputy Emer Higgins asked the Minister for Finance if the process for claiming tax credits when working from home will be simplified by automatically providing a tax credit or part thereof for each day a person works from home; and if he will make a statement on the matter. [24945/20]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that while working remotely does not entitle PAYE workers to a tax credit, there is a Revenue administrative practice in place when e-workers incur certain expenditure in the performance of their duties of employment from home. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-workers.

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

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.

Where an employer does not pay €3.20 per day to an e-worker, I am advised that employees retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act (TCA) 1997 in respect of actual vouched expenses 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. Revenue advise that the simplest way for taxpayers to claim their e-working expenses and any other tax credit entitlements is by logging into the myAccount facility on the Revenue website.

I am advised that detailed guidance on e-working and how claims for e-working expenses should be calculated and submitted to Revenue, are set out on the Revenue website 05-02-13.

Having regard to the foregoing, there are no plans at the present time to automatically provide a tax credit, or part thereof, where a person works from home.

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