Remote Worker Tax Credits

If you've been working from home in Ireland, you could be entitled to significant tax relief that many remote workers simply aren't claiming. The Remote Worker Tax Credit allows eligible employees to claim back €3.20 per day for expenses incurred while working from home, potentially putting up to €352 back in your pocket each year. With the option to backdate claims to 2020, thousands of Irish remote workers are missing out on refunds they're legitimately owed. Let's explore everything you need to know about claiming this valuable tax relief.

What is the Remote Worker Tax Credit?

The Remote Worker Tax Credit, also known as the work from home tax relief, was introduced to help employees offset the additional costs of working remotely. When you work from home, you incur extra expenses for electricity, heating, and broadband that you wouldn't otherwise pay if working from your employer's premises. Revenue recognizes these genuine costs and provides tax relief accordingly.

The relief is calculated at €3.20 per day for each day you work from home, which translates to approximately €0.40 per hour for an 8-hour working day. This daily rate is designed to cover your proportionate share of household expenses that increase when working remotely, including:

• Electricity costs for lighting, computers, and other equipment
• Heating expenses to maintain a comfortable working temperature
• Broadband internet costs essential for remote work
• Phone costs related to work activities

How Much Can You Claim?

The maximum annual relief depends on how many days you work from home. For 2025, if you work remotely for 110 days or more, you can claim approximately €352 per year (110 days × €3.20). However, the actual tax refund you receive depends on your tax rate:

Practical Example 1: Full-Time Remote Worker

Sarah works from home 5 days per week throughout 2025 (approximately 220 working days). Her calculation would be:

• Days worked from home: 220 days
• Daily rate: €3.20
• Total eligible amount: 220 × €3.20 = €704
• Sarah's tax rate: 40%
• Tax refund: €704 × 40% = €281.60

Practical Example 2: Hybrid Worker

Michael works from home 3 days per week on a hybrid arrangement (approximately 132 working days from home in 2025):

• Days worked from home: 132 days
• Daily rate: €3.20
• Total eligible amount: 132 × €3.20 = €422.40
• Michael's tax rate: 20%
• Tax refund: €422.40 × 20% = €84.48

Practical Example 3: Backdated Claim from 2020

Emma worked from home throughout the pandemic but never claimed her relief. She can now backdate her claim from 2020 through 2024. Assuming she worked from home an average of 200 days per year for 5 years:

• Total days (2020-2024): 1,000 days
• Daily rate: €3.20
• Total eligible amount: 1,000 × €3.20 = €3,200
• Emma's tax rate: 40%
• Total tax refund: €3,200 × 40% = €1,280

Who Qualifies for Remote Worker Tax Credits?

To qualify for the working from home tax relief, you must meet specific criteria:

• You must be an employee paying Irish income tax (PAYE)
• Your employer doesn't provide you with a suitable alternative workspace
• You work from home on a regular basis (not occasionally)
• You incur additional expenses for electricity, heating, or broadband due to working from home
• Your employer doesn't already reimburse you for these specific expenses

It's important to note that this relief applies whether your remote work arrangement is mandatory or voluntary. As long as you're regularly working from home and incurring the associated costs, you're likely eligible to claim.

Backdating Your Remote Worker Tax Claim to 2020

One of the most valuable aspects of this relief is the ability to backdate claims. Under Irish tax rules, you can claim tax refunds for the previous four years. This means in 2025, you can submit claims for 2024, 2023, 2022, and 2021—and many people can still claim for 2020 before that window closes.

The COVID-19 pandemic saw millions of Irish workers suddenly transition to remote work in 2020 and 2021. Many continued working from home even after restrictions lifted. If you were among them but never claimed your relief, you could be sitting on a substantial unclaimed refund. Given the typical remote worker claims between €150 and €400 per year, a four or five-year backdated claim could amount to €600-€2,000 or more.

Making Your Claim: Why Professional Help Matters

While you might technically be able to submit a claim directly to Revenue, navigating the WFH expenses claim process can be complex. Professional tax specialists understand the intricacies of Revenue requirements and can ensure you receive the maximum refund available to you.

Tax professionals can help you:

• Accurately calculate your eligible days, especially for irregular work patterns
• Identify additional reliefs you may be entitled to claim simultaneously
• Navigate backdated claims across multiple tax years
• Ensure all documentation meets Revenue's requirements
• Handle any queries or correspondence with Revenue on your behalf
• Maximize your refund by identifying all eligible relief periods

Practical Example 4: Combined Tax Reliefs

David works from home and a tax specialist identified multiple reliefs he was entitled to claim:

• Remote worker tax credit (180 days): €576
• Flat rate expenses for his profession: €150
• Unclaimed medical expenses: €300
• Total eligible amount: €1,026
• David's tax rate: 40%
• Total tax refund: €410.40

Without professional assistance, David might have only claimed the remote worker credit and missed out on the additional €130 in refunds.

Important Considerations and Common Mistakes

When claiming remote worker tax credits, avoid these common pitfalls:

• Don't double-claim: If your employer reimburses you for specific home office expenses, you cannot claim tax relief for the same expenses
• Keep accurate records: Maintain documentation of your remote working days, even if it's just calendar entries or email confirmations
• Understand partial days: Only full days worked from home typically qualify; coming home early to finish work doesn't count
• Don't overlook partial years: Even if you only worked from home for part of a tax year, you can still claim for those eligible days

Frequently Asked Questions About Remote Worker Tax Credits