Due to the covid-19 pandemic, workers are forced to stay and work at home. During this work from home period, workers can claim tax relief on their additional home expenses including electricity, broadband and heat.
The work-from-home allowance scheme is not only beneficial to company employees, it can be claimed by self-employed contractors using personal limited or PAYE umbrella companies. According to revenue, workers can claim an allowance up to €3.20 per day which is exempted from paying tax, prsi, and usc. However, if you are getting above that rate, you will be liable to pay for tax, PRSI and USC.
On the other hand, contractors can claim their tax back from home office expenses at year-end. out of the total expenses, only 10% of the bills are allowable to claim for tax relief. Contractors can claim the tax relief based on the PAYE tax rate that they pay. However, if you have already received the allowance from your employer, the amount received must be deducted from your tax relief claim.
For contractors who work from home, the claimable expenses include electronic equipment such as a laptop, printer, scanner, and modem. Office furniture such as a desk and chair are also acceptable to claim tax back. Furthermore, the additional cost of mobile phone bills, broadband costs and utility bills are also allowed in the claimable list.
Every expense claim must relate to a work or business purpose and there must be an acceptable reason to claim. If you have any questions about what expenses are claimable or not claimable, please contact us. We would be happy to help or give guidance.
Accounting Pro is Ireland’s premier contractor accounting service. We are here to help the busy contractor and company, with all your accounting and payroll needs. We are both an umbrella company and umbrella corporation and we can create your limited company. We are experts in contractor pensions, contractor health insurance, illness and sick benefit for the self-employed and contractor expenses. To learn more about what we do please review https://www.accounting-pro.ie/ and contact us by email: email@example.com or phone us 01 592 1199. for the uk see accounting-pro uk. “how to maximise your net pay when contracting in ireland” is an article written by accounting-pro ireland for the benefit of everyone. Feel free to share it but please give attribution on a CC by-SA license.