Working From Home – Tax Benefits

Do you work full time or part time from home and only occasionally visit the office? Are you an employer and want to provide equipment to your employees so that they can work from home? Have you looked into eWorking?

As well as the work/life balance benefits and time savings, there are some great tax benefits to eWorking.

What is eWorking?

Revenue’s guidelines state that eWorking involves:

  • Working for substantial periods outside the employer’s premises
  • Logging onto the employer’s computer remotely
  • Sending and receiving email, data or files remotely
  • Developing ideas, products and services remotely.

No Benefit in Kind

An employer can provide computers, printers, office furniture and telephone lines to an employee to enable them to carry out work from home, without a benefit in kind charge.

Electricity and Heating Costs – Tax Free

Revenue understand that eWorkers will incur additional heating and electricity costs due to working from home. They will allow an employer to make tax-free payments of up to €3.20 per day to employees working from home.

Anything paid above this amount is subject to tax.

Capital Gains Tax: Principal Private Residence Exemption

eWorking should not affect the capital gains tax exemption for Principal Private Residences.

Local Property Tax (LPT)

There is no reduction of LPT due on a residential property in relation to the owner
using a room in his or her home to carry out work-related activities

For further information, check out the Revenue’s guidelines.

Taking the next step in growing your business? Need up-to-date tax advice and invaluable insights into how your business works?

Contact us today to arrange your consultation – 021 240 9120

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The Fidelia Team

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