Neasa Hourigan (Dublin Central, Green Party)
Link to this: Individually | In context | Oireachtas source

64. To ask the Minister for Finance if employees of public bodies qualify as e-workers for payments of up to €3.20 per day; and if he will make a statement on the matter. [32033/20]

Neasa Hourigan (Dublin Central, Green Party)
Link to this: Individually | In context | Oireachtas source

65. To ask the Minister for Finance his plans to review the 10% threshold for heating, electricity and broadband bills on which employees can claim tax relief when working from home; and if he will make a statement on the matter. [32034/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 64 and 65 together.

The administration of the tax code is exclusively a matter for Revenue.  Section 101 of the Ministers and Secretaries (Amendment) Act 2011 has specifically provided that Revenue is independent in the performance of its functions under, or for the purposes of, the tax code.  Consequently, I am precluded from giving any direction or instruction to Revenue in regard to the review of any threshold relating to e-working.

However, I am advised by Revenue that while working remotely does not entitle PAYE workers to a tax credit, there is a Revenue administrative practice in place relating to e-workers who incur certain expenditure in the performance of the duties of their employment from home. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-workers.

e-Workers will incur certain expenditure in the performance of their duties from home, such as additional heating, electricity and broadband costs. Revenue allows an employer to make payments up to €3.20 per day to employees, subject to certain conditions, without deducting PAYE, PRSI or USC. This payment is at the discretion of the employer.  Public bodies or the public sector in general do not, as a matter of course, pay this daily allowance and this is a matter for the Department of Public Expenditure and Reform.

Where an employer does not pay €3.20 per day to an e-worker, employees retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act 1997 in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment. The existing e-working guidelines provide a tax deduction for e-workers for vouched expenditure incurred for electricity and heat at 10%, apportioned according to the number of days worked from home in the year. Additionally, Revenue is willing to accept that 30% of the cost of broadband, apportioned according to the number of days worked from home over the year, can also be claimed. This concession, commencing in tax year 2020, will apply for the duration of the pandemic.

PAYE workers can claim e-working expenses by completing an Income Tax return at year end. Revenue advise that the simplest way for taxpayers to claim their e-working expenses and any other tax credit entitlements is by logging into the myAccount facility on the Revenue website.

Finally, I am advised that Revenue has published detailed guidance on this subject and on the question of how claims for e-working expenses should be calculated and submitted – see Tax and Duty manual TDM 05-02-13 e-Working and Tax, which is available on the Revenue website.