Those working from home won’t get tax relief on bills until 2022

Finance officials have confirmed the change does not take effect until next year. This is in contrast to last year, when Budget 2021 introduced tax relief on broadband for the first time, but with a provision to allow workers to backdate the relief for 2020.

Finance Minister Paschal Donohoe said on Tuesday that those working from home will be able to claim 30pc on vouched electricity and heating bills instead of 10pc.

Asked when the enhanced tax relief will kick in, the Department of Finance said: “The full details of the Remote Working Relief will be outlined in the Finance Bill and the measure will apply for the 2022 tax year.

“For information, taxpayers can currently claim relief for 10pc of the cost of electricity and heat incurred and 30pc of the cost of broadband incurred.”

The relief can only be claimed if their employer is not paying the tax-free €3.20 a day discretionary payment.

The increase in what can be claimed by remote workers for heating and electricity will benefit a higher-rate taxpayer by about €100.

This is on the basis that the worker runs up electricity and heating bills of €1,000 a year, assuming they are working from home on a full-time basis.

Lower-rate taxpayers will be able to claim an extra €50.