E-Working and Tax
In general, e-Working is regarded as a method of working using information and communication technology in which the work-related activity that is carried out is not bound to any particular location.
i. Working at home
ii. Working some time at home and the remainder in the office
iii. Working while on the move with infrequent visits to the office
The provisions noted below do not include employees who bring some work home in the evenings/weekends in the normal course of their employment.
Provision of equipment and expenses
An employer may provide an e-worker with a phone line, broadband, laptop, printer, scanner or other software devices to enable the employee to work from home. Where the provision of these items are primarily for business use a Benefit-In-Kind charge will not apply with regards to the incidental private use.
The provision by an employer of other office equipment such as office furniture will not be subject to Benefit-In-Kind where the equipment provided is primarily for business use.
E-workers will incur additional heating and electricity costs while performing their employment duties at home. Revenue allows employers to make payments up to €3.20 per day to employees without deducting PAYE, PRSI or USC. Records of payments made to an employee should be maintained in the event of a Revenue Audit.
Capital gains tax and Local property tax
Where an e-Working employee uses any part of his or her home for e-Work purposes, the CGT exemption for Principal Private Residences will not be restricted.
There is no reduction to LPT due on a residential property in relation to the owner using a room in their home not to carry out work-related activities.
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