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 (increasing to 30% in 2022)
  • 10% of electricity costs (increasing to 30% in 2022)
  • 30% of broadband costs

These are allowed pro-rata for the number of days you worked from home.   There are typically 260 Monday to Fridays in the year, less 30 holiday days (including bank holidays), working from home full time entails 230 days.

So if you worked from home 230 days in the year, your are allowed 230/365 = 63% of 10% of your heating costs – Effectively 6.3% 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
  • All annual receipts on Light and Heat
  • All annual receipts on Broadband

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