Remote work tax credit: too much effort for just €61 back?

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Just 20% of those eligible have claimed the relief thus far for 2022, latest Revenue figures show

For 2022, just 75,321 people claimed the relief – far less than the estimated 400,000 or so people who should be entitled to it.Yes, despite soaring energy bills last year which put many households to the pin of their collars, Revenue figures show that the average benefit received from those who did claim the credit was just €61.Interestingly, Revenue says that almost 150,000 PAYE taxpayers filed a 2022 income tax return – for the first time ever – in the first quarter of 2023.

Ryan thinks this perception exists because the system was previously more onerous, noting that at one point you had to get a letter from your employer on headed paper confirming the exact number of days you worked from home. For reasons such as this – additional complications are if you’re in a house-share, for example – Ryan wonders whether people are claiming for the full amount of what they’re entitled to.So, let’s say John works from home three days a week, or 156 days a year. Take away 15 of those days for annual leave and he’s left with 141 days.

This is borne out in figures from Revenue, which show that the average benefit received for someone earning €20,000-€30,000 was just €41, as they pay tax at the standard rate, compared with a higher rate earner. The average benefit for someone earning €60,000-€70,000, for example, was €60, or €20 more.

 

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