Remotely working from home

How to calculate allowable remote working costs

You can only claim for the days you worked from home as a remote worker. You cannot include:

  • weekends or public holidays when you did not have to work
  • days you took as annual leave
  • and
  • days that you brought work home outside of normal working hours.

Cost shared by more than one person

If the cost is shared between two or more people, it can be apportioned based on the amount each paid.

Calculation for 2022 and subsequent years

Your relief is calculated using the formula ((A x B) ÷ C - D) x 30%, where:

  • (A) is your allowable utility bills for electricity, heating and broadband.
  • (B) is your number of remote working days.
  • (C) is the number of days in the relevant year of assessment.
  • (D) is any remote working allowance reimbursed by your employer.

The relief is given at your highest rate of tax.

Calculation for 2020 and 2021

To calculate your electricity and heating remote working costs:

  1. Multiply your allowable utility bills by the number of remote working days.
  2. Divide by 365 (when calculating relief for 2020 divide by 366).
  3. Multiply by 10% (0.1).

To calculate your broadband remote working cost:

  1. Multiply your bill by the number of remote working days.
  2. Divide by 365 (when calculating relief for 2020 divide by 366).
  3. Multiply by 30% (0.3).

Note

The Income Tax Return will calculate the relief when relevant information is entered for 2020 and subsequent years.

Next: How to claim Remote Working Relief