Ireland: A Tax Budget Package To Encourage Long-Term Remote Working

long-term remote working

Tánaiste and Enterprise Minister Leo Varadkar promotes long-term remote working, pushing for a tax budget package. If an employer doesn’t pay for allowances, employees can claim up to 10% for electricity and heating costs. In addition, remote workers can receive 30% of broadband costs from their income.

After the 2020 General Election, Leo Varadkar took the lead to manage the COVID outbreak in Ireland. Now, the Minister covers the new role of Tánaiste and Minister for Enterprise, Trade, and Employment. To help Ireland through the economic crisis, Varadkar promotes long-term remote working.

The first step to encourage hybrid and remote options is to reduce homework costs. According to the tax office, 54,000 people have already asked for an existing tax break working from home, worthed an average of € 183 this year.

During the first year of the pandemic, the government placed almost 10 million euros in tax breaks for remote work. At that time, 835,200 people were working from home with 2.2 million employees. The Central Statistical Office recorded an increase of 206,300 in the first quarter of last year.

Following this trend, the Tánaiste targets 20% of funds for long-term remote working, with a workforce of over 340,000 civil servants. Extending hybrid models, remote work will remain a permanent option after COVID. The government also aims to invest in remote work centers across Ireland to promote towns and villages.

Tax Budget Package To Encourage Long-Term Remote Working

For last year’s tax return, the tax office’s deadline was October 31, 2020. By middle July, almost 720,000 taxpayers had completed their application for the 2020 tax return. Of these applications, 7.5% of returns are eligible to ask for a remote work allowance for a gross value of over 9.9 million euros.

The amount of relief for a taxpayer depends on the tax rate. When a remote worker reaches the higher tax rate of 40%, the relief is granted at this tax rate. For those under the higher tax rate, the government allows the standard price of 20%. 

This tax-free package for remote workers aims to help cover electricity, heating, and broadband costs. When employers contribute to remote work expenses, the agreement must start from € 3.20 per day.

Even with a slow return to post-pandemic life, governments promote long-term remote working to stabilize the economic situation.


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