I am advised by Revenue that 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. Where employers avail of this facility, they are not required to advise Revenue and therefore the number of employees reimbursed in this manner is not available. Where employers choose to pay more than €3.20, the excess is subject to deduction of PAYE, PRSI and USC.
Where an employee has suffered qualifying expenses that are not reimbursed by the employer, or where such reimbursement is treated as taxable income (i.e., the above €3.20 per week), the employee may make a claim to Revenue for a deduction in respect of these amounts. Qualifying expenses in this context are expenses incurred wholly, exclusively and necessarily in the performance of the duties of the employment. I am advised by Revenue that where a deduction in respect of expenses in relation to working from home is claimed in a tax return, the amounts are included in a general ‘Expenses’ field. Therefore, it is not possible to provide the number or value of specific claims in relation to these expenses.