Government policy continues to support flexible working and remote working. However, Revenue practice as to what expenses employees are entitled to be reimbursed tax free is very restrictive. Current Revenue guidance states that if an employee works part-time in the office and part-time at home the normal place of work is considered to be the office. This may be relevant in the context of the reimbursement of travel expenses in the course of business – Revenue do not allow expenses to be reimbursed tax free in relation to travel between an employee’s home and his/her place, but where is the place of work?

Another area to consider is the level of expenses incurred in a home office that can be deducted against employment income. Revenue practice is to only allow a deduction for electricity, heating and broadband. The amount deductible is 30% of the expenses incurred based on the number of days an employee worked remotely.

Where and how we work continues to evolve. Revenue practice does not always keep pace with these changes. It continues to be our view that rather than relying on Revenue practice, the Government should introduce appropriate legislation in this area, to ensure that the tax system is aligned with current working practice.

It is our view that it is time to carry out a fundamental review of the current personal tax system and simplify the process.

To finish on a positive note. Finance Minister Michael McGrath, has confirmed he is examining cuts to USC and Taoiseach Leo Varadkar has indicated that he is in favour of cutting tax for the “squeezed middle”. We would be supportive of both measures and wait to see who will be the real beneficiaries and the net impact of such cuts on Budget day.

RBK will be holding its annual Breakfast Budget Briefing as a hybrid event in person at the Shamrock Lodge Hotel in Athlone and streaming live online on Wednesday 11th October. Mike Scanlan, Senior Tax Manager, RBK will be analysing the tax measures announced in Budget 2024 and Oliver Mangan, Chief Economist with AIB will look at the economic outlook. In the lead up to the Budget, RBK’s Business and Tax advisors will look at potential tax measures that the Government could consider and areas of concerns that are facing our clients.

Contact Us:

Should you wish to discuss any aspect of Remote Working, please contact our team:

• Michael Smith: +353 90 6480600
• Jackie Masterson: + 353 90 6480600