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Tax perks for people working from home

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Tánaiste Leo Varadkar

Tánaiste Leo Varadkar

Tánaiste Leo Varadkar

A new package of tax incentives to encourage people to work from home will be rolled out in the next Budget, the Tánaiste has confirmed.

Leo Varadkar promised improvements in the current regime that allows workers claim tax reliefs worth an average of around €30 to €100 per year.

Employers can pay a €3.20-per-day allowance, but most do not.

Mr Varadkar outlined details of a new Government strategy on remote working that will include a legal right for employees to ask to work from home permanently.

It also promises better protections for workers to enable them to disconnect from work after hours.

"At the moment, you can receive a tax-free payment of €3.20 a day from your employer for home working, or you can have some of your expenses - utilities, for example - reimbursed," Mr Varadkar said.

"But it's intended that as part of the Budget package in October, there will be a new package of tax incentives and expenses to encourage people to work from home.

"So you will see an improvement there in what's currently in place."

The Tánaiste said the Government also needs to examine ways it can help out employers.

He said in the medium to long-term, remote working could reduce business costs.

However, a lot of employers had told him they are "kind of stuck with both" costs of renting office space and supporting employees working from home.

"At the moment, they have the cost of the rent and utilities on the office, and they're also covering some of the costs of people working at home," he said.

Meanwhile, workers who refuse to check emails and take calls out of hours are promised better legal protection in the new Government plan.


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