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Chapter 3
Income Tax
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Deduction in respect of certain expenses of remote working
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3. (1) Chapter 2 of Part 5 of the Principal Act is amended by the insertion of the following section after section 114:
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“114A. (1) In this section—
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‘qualifying residence’ means a residential premises that is also used by a remote worker to perform the duties of his or her office or employment;
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‘relevant expenses’, in relation to a remote worker, means expenses incurred and defrayed by the remote worker in respect of the provision of electricity, heating or an internet service in his or her qualifying residence;
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‘remote worker’ means a person who is the holder of an office or employment of profit and who performs the duties of his or her office or employment—
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(a) by working from his or her residential premises on a full-time or part-time basis, or
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(b) by working some of his or her normal working time from his or her residential premises, with the remainder of that normal working time being spent in his or her normal place of employment or in some other place;
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‘residential premises’ means, a dwelling or part of a dwelling which is occupied by an individual as his or her residence;
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‘specified amount’, in relation to a year of assessment, means the amount of expenditure which qualifies for income tax relief in accordance with this section.
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(2) Where in any year of assessment a remote worker, having made a claim in that behalf, proves that he or she has incurred and defrayed relevant expenses out of the emoluments of the office or employment of profit, he or she shall be entitled to claim a deduction (in this section referred to as ‘remote working relief’) from the emoluments to be assessed in respect of the specified amount determined in accordance with subsection (4).
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(3) Subject to this section, where, for a year of assessment, an individual (in this section referred to as the ‘claimant’), on making a claim in that behalf, proves that relevant expenses were incurred by—
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(a) in a case in which the claimant is a married person assessed to tax for the year of assessment in accordance with section 1017 or a civil partner assessed to tax for the year of assessment in accordance with section 1031C, the claimant or his or her spouse or civil partner, or
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(b) in any other case, the claimant,
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then the claimant shall be entitled to remote working relief.
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(4) The specified amount, in relation to relevant expenses incurred by a remote worker in any year of assessment, shall be 30 per cent of an amount determined by the following formula:
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where—
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A is the amount of the relevant expenses incurred and defrayed by the remote worker in the year of assessment,
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B is the number of days in the year of assessment the remote worker performed the duties of his or her office or employment of profit from his or her qualifying residence,
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C is the number of days in the year of assessment, and
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D is any amount reimbursed or to be reimbursed, directly or indirectly to the remote worker in relation to those expenses by his or her employer.
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(5) Where the cost of incurring and defraying relevant expenses is shared by 2 or more persons (other than a person referred to in subsection (3)(a)) residing in a qualifying residence in a year of assessment, then, for the purposes of any claim for relief under this section, the total cost of incurring and defraying those expenses in the year of assessment shall be apportioned between each of the persons concerned by reference to the amount of those expenses that were defrayed by each such person.
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(6) On making a claim under this section, a claimant shall provide to the Revenue Commissioners, through such electronic means as the Revenue Commissioners make available, full particulars of the relevant expenses, including—
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(a) a copy of the statement issued by the service provider in respect of the service provided to the qualifying residence that constitutes the relevant expenses, and
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(b) any other relevant information that may reasonably be required by the Revenue Commissioners to determine whether the requirements of this section are met.
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(7) Where relief is given under this section to any individual in respect of relevant expenses, no relief or deduction under any other provision of the Income Tax Acts shall be given or allowed in respect of those relevant expenses.”.
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(2) This section shall have effect for the year of assessment 2022 and each subsequent year of assessment.
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