More than a million workers to benefit from remote-working tax breaks

With the return to the office for a majority of workers expected to commence in September, many will seek to work on a hybrid model over the course of the week.

Such a move will have a profound impact on city life and transport infrastructure, as well as seeing major proposed office developments repurposed for accommodation, senior Government sources say.

At the launch of his remote-working campaign, Tánaiste Leo Varadkar said: “We don't want to go back to the old normal. We want the new normal, and we want that to be based on personal choice.

We will have in the budget, a package around remote working. Paschal Donohoe, the finance minister and I are working on it, and it'll be a change to the existing tax and expenses regime to support people who are remote working and also to help businesses.” 

The idea is that between the rollout of so-called 'hubs' in town centres or high-quality broadband connections, people can work from or as close to home as possible, unencumbered for part or all of their working week.

“Most people appear to want to do is some form of blended working where sometimes you might be in the office and the rest of the time working remotely at home or in a hub somewhere closeby,” said Mr Varadkar.

Mr Varadkar said that all going to plan, level two restrictions provide for a return to the workplace for training, for induction, and for meetings from September.

Level one would allow for a staggered return to the workplace, he said.

We'd certainly anticipate that come September, when all adults are fully vaccinated, that we'll be in the position to make this a choice for the future,” said Mr Varadkar. 

"Hopefully, maybe a little bit earlier in August, depending on how things develop."

There are potential costs and savings for employers and employees in the plan, he said, but added that it is going to depend on the individual and the workplace in terms of equipment, costs, etc.

Such a move, it is hoped, could see many smaller, struggling rural towns rejuvenated. That is seen as a major driver of rebalancing the economy away from Dublin.

Some of the world's biggest firms such as Microsoft, Apple, and Google have said they will be using a hybrid work model, albeit that Apple had pushback from its staff when Tim Cook said he wanted them back in the office for three days a week. 

When Amazon said it wanted its employees back five days a week, staff were vocal in their disapproval. The company relented and reduced that to three days.

Grant Thornton Ireland managing partner Michael McAteer said: “One lasting effect of the pandemic will be the shift we have seen in how we work, and how we have embraced remote working. 

A shift that has started and that will continue to see the move of people from cities to regional locations.

“This the new dynamic of how we work and operate should bring with it a rejuvenation of Irish regional businesses and we want to ensure that they have the tools and advice necessary to navgate any challenges, leverage new opportunities and to return to an era of success and growth.” 

The Irish Congress of Trade Unions general secretary Patricia King said the flexible working model must become a mainstream feature of work post-pandemic. 

“While the 15-month working from home ‘experiment’ has been fraught for some workers, for the vast majority it has been a positive experience and there is a huge appetite for remote and blended working arrangements when the Covid-19 restrictions end,” she said.