The shift to remote work has transformed the Irish workplace, and thousands of employees are now entitled to valuable tax relief that many haven't claimed yet. If you've been working from home since 2020, you could be owed hundreds of euro in tax relief—and the best part? You can backdate your claim to recover what you're owed from previous years. In this comprehensive guide, we'll walk you through everything you need to know about Work From Home Tax Relief in Ireland for 2025.
Understanding Work From Home Tax Relief in 2025
Revenue's Work From Home Tax Relief scheme allows employees who work from home to claim a flat-rate expense deduction of €3.20 per day for days worked remotely. This relief is designed to offset the additional household costs you incur when working from home, including electricity, heating, and broadband expenses.
The relief applies to employees who are required by their employer to work from home and who don't receive an expense allowance covering these costs. If you work from home even one day per week, you're likely eligible for this valuable tax benefit through our working from home tax relief service.
How Much Can You Claim in 2025?
The maximum annual relief you can receive depends on how many days you work from home. If you work remotely for 110 days or more per year, you can claim the maximum relief of approximately €352 per year (based on working 110 days at €3.20 per day).
Key Numbers for 2025
- Daily rate: €3.20 per day worked from home
- Maximum annual days: 110 days (approximately 2 days per week)
- Maximum annual relief: Approximately €352
- Backdating: Available from 2020 onwards
- Tax saving: Based on your marginal tax rate (20% or 40%)
It's important to understand that the €352 figure is the relief amount, not the actual tax refund. Your actual refund depends on your tax rate. If you're on the higher tax rate (40%), you'll receive 40% of €352, which equals approximately €140.80. If you're on the standard rate (20%), you'll receive approximately €70.40.
Practical Examples: What You Could Claim
Example 1: Full-Time Remote Worker (5 Days Per Week)
Sarah works from home five days per week and has done so since March 2020. She's a higher-rate taxpayer earning €60,000 annually.
- Annual WFH days: 220 days (capped at 110 for relief purposes)
- Annual relief amount: €352
- Tax refund (at 40%): €140.80 per year
- Total backdated claim (2020-2024): Approximately €704
- Plus 2025 claim: €140.80
- Total potential refund: €844.80
Example 2: Hybrid Worker (2 Days Per Week)
Michael works from home two days per week on a hybrid arrangement since January 2021. He's a standard-rate taxpayer earning €42,000 annually.
- Annual WFH days: 104 days
- Annual relief amount: €332.80 (104 × €3.20)
- Tax refund (at 20%): €66.56 per year
- Total backdated claim (2021-2024): Approximately €266.24
- Plus 2025 claim: €66.56
- Total potential refund: €332.80
Example 3: Occasional Remote Worker (1 Day Per Week)
Emma works from home every Friday since September 2022. She's a higher-rate taxpayer earning €55,000 annually.
- Annual WFH days: 52 days
- Annual relief amount: €166.40 (52 × €3.20)
- Tax refund (at 40%): €66.56 per year
- Total backdated claim (Sept 2022-2024): Approximately €166.40
- Plus 2025 claim: €66.56
- Total potential refund: €232.96
What Expenses Does This Relief Cover?
The €3.20 daily rate is Revenue's flat-rate calculation designed to cover a portion of your increased household expenses when working from home. This includes:
- Electricity: Additional power usage for computers, lighting, and equipment
- Heating: Increased heating costs during working hours
- Broadband: Portion of your internet costs attributable to work use
The beauty of this scheme is that you don't need to provide receipts or calculate actual costs. Revenue has determined that €3.20 per day is a reasonable allowance for these combined expenses, making it straightforward to claim through our WFH expenses claim service.
Backdating Your Claim to 2020
One of the most valuable aspects of this relief is that you can backdate your claim to 2020—the year when remote working became widespread due to the pandemic. This means if you've been working from home since 2020 and haven't claimed yet, you could be owed significant refunds for multiple years.
Revenue allows you to claim for the current tax year plus the previous four years. For claims made in 2025, you can recover tax relief for 2021, 2022, 2023, 2024, and 2025. While you cannot claim for 2020 anymore (as it's now beyond the four-year limit), anyone who worked from home from 2021 onwards can still recover substantial amounts.
Important Note: Many employees miss out on hundreds of euro simply because they're unaware they can backdate their claims. Don't leave money on the table—our tax professionals can ensure you receive every euro you're entitled to from previous years.
Eligibility Requirements for 2025
To qualify for Work From Home Tax Relief in 2025, you must meet these criteria:
- You must be an employee working from home (not self-employed)
- Your employer requires or permits you to work from home
- You incur additional household costs due to working from home
- You don't receive an expense allowance from your employer that covers these costs
- You work from home on a regular basis (at least one day per week)
If you're unsure whether you qualify or want to maximize your claim including other remote working tax deductions, our tax experts can review your situation and ensure you receive your full entitlement.
How the Claim Process Works
While some taxpayers attempt to navigate Revenue's systems themselves, working with tax professionals ensures you receive your maximum refund without the stress of dealing with complex forms and calculations. The claim process involves:
- Calculating eligible days: Determining exactly how many days you worked from home each year
- Computing relief amounts: Applying the €3.20 daily rate correctly
- Determining tax refunds: Calculating the actual refund based on your tax rate
- Backdating claims: Ensuring all eligible previous years are included
- Submitting to Revenue: Filing the claim correctly through Revenue's systems
- Following up: Ensuring Revenue processes your claim and issues your refund
Our experienced tax team handles every step of this process for you, ensuring accuracy and maximizing your refund. We're familiar with Revenue's requirements and know exactly how to present your claim for fastest processing.
Common Mistakes That Reduce Your Refund
Many taxpayers inadvertently reduce their refund or face delays by making these common errors:
- Underestimating days worked from home: Not counting occasional remote days or forgetting about specific periods
- Failing to backdate: Only claiming the current year instead of recovering previous years' relief
- Incorrect calculations: Miscalculating the relief amount or tax refund due
- Missing documentation: Not maintaining adequate records of remote working arrangements
- Incomplete claims: Overlooking other eligible employment expenses that could increase your refund
Professional tax assistance eliminates these risks and often identifies additional reliefs you may be entitled to, resulting in significantly higher refunds than self-filed claims.
Frequently Asked Questions
Do I need to provide receipts for electricity and broadband bills?
No, that's the advantage of Revenue's flat-rate scheme. You don't need to provide receipts or calculate actual costs. The €3.20 per day rate is a standardized allowance that Revenue has determined to be reasonable for covering the additional household costs of working from home. You simply need to demonstrate that you worked from home for the claimed number of days.
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