19 Jun Working from Home? How to get €730 or more towards your new bathroom
If you are like thousands of other workers in Ireland and now working from home due to the COVID 19 pandemic then this could be a way to get up to €730 tax free.
You see the Revenue has a special eworking tax relief which means that your employer can pay you €3.20 per day without making any deductions. €3.20 might not seem a lot, and was probably the price of your pre lock-down cappuccino, but surprisingly over the course of the year it can add up. If on average you work 19 days per month (after deducting holidays) for 12 months that is 228 days. 228 days x €3.20 = €730. This is essentially free money.
So how do I go about getting this I hear you ask. Well first of all you need to meet the definition of eWorking that is laid out by the revenue. They deem it to be eWorking when you work:
- at home on a full- or part-time basis
- part of the time at home and the remainder in your normal place of work.
Revenue states that eWorking involves:
- working for substantial periods outside your normal place of work
- logging onto a work computer remotely
- sending and receiving email, data or files remotely
- developing ideas, products and services remotely.
So if you meet these criteria you can get your €3.2o per day without incurring any PAYE tax, PRSI or USC.
If you speak to your employer they should be able to make the adjustment for you on their payroll. If they won’t do that for you then you can claim on your income tax return at the end of the year.
And what if you were buying that cappuccino each day, and perhaps your lunch, well the chances are you could have been spending a good €15 per day, and that is before we even look at travel costs which could easily have come to another €5 per day. So that’s probably a saving of €20 per day or €4560 (20 x 228 days). Add that to the tax reabate and that is a whopping €5290 that you are not spending – definitely enough for your bathroom upgrade!
So now you have an extra €5k burning a hole in your pocket so get in touch with us today and we can work with you on planning your new bathroom. After all with all the extra time you are now spending at home, having a new luxury bathroom could be the treat you deserve.