Working from Home (WFH) Tax Deduction

How to Claim the Working from Home tax deduction

Are you eligible?

If you were working from home and your employer did not pay you a flat rate €3.20 working from home tax free daily allowance, you can claim a portion of your Light, Heating and Broadband  costs instead through a tax return.

What’s allowed?

You are allowed to claim:

  • 10% of your heating costs
  • 10% of electricity costs
  • 30% of broadband costs

These are allowed pro-rata for the number of days you worked from home.  So if you worked from home 200 days in the year, your are allowed 200/365 = 55% of 10% of your heating costs – Effectively 5.5% of your heating costs.

How much tax will I save?

Once the allowed costs have been calculated, these can be claimed against your taxes as an income deduction. If you pay income tax at 40%, you will save €40 for every €100 of allowed costs, whereas the benefit is only 20% if that is your marginal tax rate.

How to Claim?

In order to claim the Working from Home tax deduction, we need the following information:

  • Number of working from home days
  • Amount spent on Light and Heat
  • Amount spent on Broadband

We can calculate your allowed income deduction based on the above and make a claim.