Remote Working Tax Relief in Ireland: Revenue Guide to e-Working Costs

Remote working relief is the Irish tax treatment of the extra home costs of working from home, and it comes in two parts that work together: an employer can pay a tax-free daily allowance, and an employee can claim relief for certain costs the employer did not cover. If you run payroll for a Dublin team with hybrid staff, you need to know where the employer's responsibilities start and stop, and how the allowance is reported through PAYE reporting.

This guide is based on Revenue's own pages. Rates and limits can change, so any figure below is given as it appeared on the dated Revenue page, and you should check the page on the day you rely on it.

The two routes in outline

Revenue's guidance sets up two separate routes:

• Employer-paid allowance. The employer may pay a daily amount to a qualifying remote worker without deducting income tax, PRSI or USC.
• Employee claim. The employee claims Remote Working Relief on certain household costs, after taking account of anything the employer has already paid.

The Tax and Duty Manual (Part 05-02-13, "Document last updated May 2026") states that there is "no legal obligation on the employer to make such a payment." Paying the allowance is at the employer's discretion. An employee who receives no allowance cannot claim a tax-free daily amount, but can still claim relief for the relevant additional costs.

Who counts as a remote worker

The manual defines remote working as a way of working, using information and communication technology, where the work is not tied to a particular location. It can mean working at home full-time or part-time, or splitting time between home and the office. Taking some work home in the evenings or at weekends does not count.

To qualify, the manual lists three conditions:

• there is an arrangement between employer and employee for working from home, which can be a policy or an agreement, verbal or written, and no formal letter is required;
• the substantive duties of the job are performed at home; and
• work is done at home for substantial periods.

The manual gives examples of people who do not qualify, such as an employee who only does ancillary work at home and an employee whose substantive duties are elsewhere. Directors, including proprietary directors, can be covered where they pay the relevant costs out of the emoluments of their office, according to the manual (paragraph 4, updated by Revenue eBrief No. 042/24 of 20 February 2024).

The employer-paid allowance

Revenue's employer page on remote working (published 9 April 2026) says employers can pay "€3.20 per workday" to remote working employees without deducting income tax, PRSI or USC. It says the allowance is intended to cover costs such as broadband, heating and electricity, and that any amount above that figure must have tax deducted. The tax-free treatment applies only where the three conditions above are met.

The same page sets out the employer's housekeeping duties:

• records of the payments made must be retained by the employer; and
• employers must report the total number of days worked remotely, the amount paid and the date paid, under the enhanced reporting requirements.

The manual adds that since 1 January 2024 the allowance has been a "reportable benefit" under the enhanced reporting rules, and refers to a separate manual (Part 38-03-33) for the detail. The €3.20 figure is a Revenue administrative practice rather than a figure you will find set out as a statutory entitlement, so check the current wording before updating a policy.

The employee claim: what is covered

Revenue's page "What costs can you claim for?" (published 12 May 2026) says you can attribute 30% of the cost of electricity, heating and broadband to remote working, apportioned by the number of days worked from home over the year. The manual is explicit that only electricity, heating and broadband in the qualifying residence are covered. No other expenses are relieved.

For broadband bundles, such as a package that includes television and phone, the page says that if the supplier provides a breakdown, the broadband part can be used. If there is no breakdown, Revenue says it will accept a reasonable apportionment of the bundle cost as the broadband cost.

What is not allowable, according to those pages:

• capital items such as laptops, computers, office equipment and office furniture; and
• the cost of renting a desk in a hub, which the manual says only the employer may deduct.

The manual notes that employer-provided equipment may fall under a separate benefit-in-kind exemption, and our guide to benefit in kind for employers covers how employer-provided items are generally treated.

How employer payments reduce the claim

The manual says the relief is worked out by apportioning the annual bills by days worked from home, deducting any employer payments for those costs, and taking 30% of the result. Revenue's page "Allowance paid to you by your employer" (published 12 May 2026) says that an employee who claims relief should deduct any remote working expense payments the employer made. In practice, that means an employer's tax-free allowance and the employee's claim do not both give full relief on the same cost.

Because the specified amount is deducted from taxable emoluments, the manual says relief is given at the individual's marginal rate. The manual's examples show the relief at both the 20% and 40% rates.

How employees claim

The manual says claims are made online and free of charge. Receipts must be provided, and utility bills must be uploaded electronically. It describes two timings:

• in-year, through the Real-Time Credit facility in myAccount; or
• after the year end, through the annual Income Tax Return, or for PAYE-only taxpayers the "Review your Tax" card in myAccount.

According to the manual, the total relief for the year is the same either way, and only the timing differs. It also says that where a bill is in one person's name but several people pay it, each person may claim the portion they actually paid, and they should keep proof of their own contribution.

What employers should do

Employers are not the ones who make the employee's claim, but they affect it. Our suggestions, which are not legal requirements:

• Our suggestion: write a short remote working policy that records who is a remote worker, how many days are worked from home, and whether the employer pays the daily allowance.
• Our suggestion: keep a record of days worked remotely that matches what you report to Revenue, since the reporting asks for the number of days.
• Our suggestion: tell employees what the employer has paid for each year, so that they can deduct it properly from their own claims.
• Our suggestion: if you also fund other development costs for remote staff, keep those separate from the allowance. Our post on the tax treatment of employer-funded staff training looks at that different area.

What this guide does not cover

This guide does not cover the self-employed position in detail, other tax credits, or equipment purchases beyond the points above. Revenue's manual also deals with capital gains tax and local property tax points for people who work from a room at home, which this guide does not go into.

Learnsignal's offices are off Baggot Street in Dublin, and we offer in-person training from there. For current details, see our CPD pages.

Frequently asked questions

Must an employer pay the remote working allowance?

No. The Revenue manual says there is no legal obligation on the employer to make the payment. It is at the employer's discretion.

Can an employee claim if the employer pays nothing?

Yes, according to the manual. An employee who receives no allowance cannot claim a tax-free daily amount but can still claim relief for the relevant electricity, heating and broadband costs.

Does the relief cover a laptop or desk?

No. Revenue says capital items such as laptops, computers, office equipment and furniture are not allowable under the employee claim.

Does the employer need to report the allowance?

According to Revenue's employer page, employers must report the days worked remotely, the amount paid and the date paid, and keep records of the payments.

Where can I check the current figures?

On Revenue's remote working pages and the Tax and Duty Manual Part 05-02-13. Figures can change, so check them on the day you rely on them.

Remote working relief is simple in outline but depends on records. Keep them tidy on both the employer and employee side, and go back to Revenue's pages for the current position.