The claiming of expenses as a tax deduction against PAYE income is almost impossible. Before an expense will be allowed for tax relief it must have been incurred wholly, exclusively and necessarily in the performance of the duties of employment. This is why there is no tax relief for the costs of travelling to and from work or for normal clothing, cost of lunch etc.
To compensate for this the Revenue has an agreed flat rate expenses allowance for certain categories of employment which is automatically allowed to you. There is no need to produce receipts etc in support of your claim. There is a full listing of the agreed amounts on the tax return section of our website. If you are employed in one of the qualifying categories you should check to ensure that the appropriate allowance is being given to you. This is something that is often overlooked and can lead to sizable tax refunds being due.
e-Working and home workers
Where an employee works at home on a full or part-time basis they can receive an extra payment of €3.20 per day without deducting PAYE,USC or PRSI.
This payment is to cover expenses such as heating and electricity costs.
- working for substantial periods outside the normal place of work
- logging onto a work computer remotely or sending and receiving email, data or files remotely