Know your rights: Claiming tax relief on utility bills when working from home
I’m working from home because of COVID-19. Can I claim tax back on my utility bills?
If you are working from home (also known as e-working or remote working), you may be able to claim tax back on your broadband, heating and electricity bills.
You qualify for the tax relief if your employer formally requested you to work from home and you:
- Log onto a work computer remotely
- Complete your duties from home
- Work at home for substantial periods of time
This applies to part-time and full-time workers.
How much can I claim?
Some employers already pay their employees an allowance towards broadband, heating and electricity expenses. You can get up to €3.20 per day without paying any tax, PRSI or USC on it. However, you must pay tax, PRSI and USC as normal on any amount above €3.20.
If your employer does not pay you an allowance for expenses, you can make a claim for tax relief at the end of the year using Revenue’s myAccount service.
The amount you get is based on:
- How many days you worked from home (excluding non-working days and annual leave)
- The cost of the expenses
- Revenue’s agreed rate for calculating the cost of running a home office (10% of your electricity and heating bills and 30% of your broadband bill)
If you split your bills with someone else (such as a partner or house mate), you can only claim tax relief on your share of the bill.
Keep a record of all your receipts and bills so that you can account for each expense you intend to claim. You may also need a letter from your employer stating that you work from home.
How do I submit my claim?
You can see worked examples of how to calculate your claim. Example 1 covers a person who pays the bills on her own. Example 2 explains how to calculate e-working costs where you share your bills with someone else.
Claim your tax relief at the end of the year using Revenue’s myAccount service.
- Sign into myAccount
- Click on ‘Review your tax’ link in PAYE Services
- Select the Income Tax return for the relevant tax year
- In the ‘Tax Credits and Reliefs’ page (Page 4 of 5) select the ‘Your job’ tab. Select ‘Remote Working Expenses’ and insert the amount of expense at the ‘Amount Claimed’ section