eWorking and Tax - IT69
This leaflet deals with tax implications of eWorking employees.
eWorking is regarded as a method of working using information and communication technology in which the work that is carried out is not bound to any particular location. Ways of eWorking include:
- Working at home on a full time or part time basis
- Working some of the time at home and the remainder in the office
- Working while on the move, with infrequent or occasional visits to the office.
eWorking involves:
- Working for substantial periods outside the employer’s premises
- Logging onto the employer’s computer remotely
- Sending and receiving email, data or files remotely
- Developing ideas, products and services remotely.
The number of employees eWorking is increasing and this leaflet addresses some of the more important issues that affect them.
Income Tax
Provision of Computers & other Additional Equipment
An individual’s employer may provide equipment, such as computers, printers, scanners, fax machines, etc. and software to enable him or her work from home. Where the provision of such items is primarily for business use, a benefit-in-kind charge will not be imposed on the employee in respect of incidental private use. The provision of a telephone line for business use will not give rise to a benefit in kind charge.
Provision of Other Equipment
Likewise, the provision of other equipment, such as office furniture, etc., by the employer to enable the employee work from home will not attract a benefit-in-kind charge where the equipment is provided primarily for business use.
Home Expenses
eWorkers will incur certain expenditure in the performance of their duties from home, such as additional heating and electricity costs. Revenue is prepared to allow an employer make payments up to €3.20 per day to employees without deducting PAYE and PRSI. This does not prevent an employee making a specific expenses claim where the actual expenditure is in excess of this amount.
Other Expenses
The tax treatment of motor expenses and subsistence payments which may be made by an employer without attracting a tax liability is set out in Income Tax leaflets IT51 - Employees' Motoring/Bicycle Expenses and IT54 - Employees’ Subsistence Expenses, respectively. In relation to eWorkers, the determination of the individuals base may cause an element of difficulty. In practice, if the employee works part time in the office and part time at home, the base is the office.
Note: These arrangements only apply to eWorking employees. They do not extend to employees who, in the normal course of employment, bring some work home in the evening, etc.
Capital Gains Tax
Where an eWorking employee uses any part of his or her home for eWork purposes, the capital gains tax exemption for Principal Private Residences will not be restricted.
Further Information
If you need further information or clarification on any point, please contact your Regional Revenue Office the LoCall number for which is listed below
| Region | Area Covered | Telephone No. |
|---|---|---|
| Border Midlands West Region | Cavan, Donegal, Galway, Mayo, Monaghan, Leitrim, Longford, Louth, Offaly, Roscommon, Sligo, Westmeath | 1890 777 425 |
| Dublin Region | Dublin (City and County) | 1890 333 425 |
| East & South East Region | Carlow, Kildare, Kilkenny, Laois, Meath, Tipperary, Waterford, Wexford, Wicklow | 1890 444 425 |
| South West Region | Clare, Cork, Kerry, Limerick | 1890 222 425 |
All calls are charged at local rates.
If you are calling from outside the Republic of Ireland, please phone 00 353 (1) 702 3011.
Revenue Commissioners
April 2004
PDF Version of IT69 - eWorking and Tax (PDF, 342KB)
While every effort is made to ensure that the information given in this leaflet is accurate, it is not a legal document. Responsibility cannot be accepted for any liability incurred or loss suffered as a consequence of relying on any matter published herein.