Working Remotely: Are you Entitled to Tax Relief?
Oct 29 . 3 m
What Can I Find in This Article?
· E-working and Tax Relief
· How to on claiming tax entitlements2020 the year of change!
Countless workers across Ireland have been affected by the new norm of remote working. Not to mention the financial and emotional burden that has been bestowed upon us by dare we mention it, the restricted lifestyle. Nonetheless, there is a silver lining. E-workers are now entitled to avail of tax relief on expenses such as heating, electricity, and broadband, and we are going to explain how. Buckle your seat belts and let’s dive in.
A Budget-Saving Buoy.
As of midnight, October 21st, the Covid-19 nightmare struck again. Not only are we burdened by the stress of the lockdown, but a spike in household bills loom over our paths. How can we ease the pressures that the lockdown brings? Can we cut costs, not increase expenses? The good news is yes. Luckily, a few budgetary measures for 2021 may provide some welcomed relief.
A large number of individuals are working from home and students are following their lessons online, so upgrading our broadband plans to meet these requirements is a necessity. Others are subscribing to streaming services, or TV bundles to beat the boredom. Gaming is on the rise, along with video chatting, and we are using our phones more to reach out to loved ones. Our lights are on longer, and we are heating our homes during the hours where we would normally be out. It’s an overwhelming feeling, almost like being drowned in bills, right? Thankfully we have been thrown a budget-saving buoy and can now claim some of it back.
We can look forward to tax credits for the self-employed, those working remotely, and reduced VAT on hospitality and tourism. The lower VAT rate of 9% will be in effect from November 1st, 2020, until December 2021. Every little bit will help us to stay afloat a little longer!
Tax Credits? Yes, Please!
Lockdown feels a lot like house arrest. We are working or studying from home, entertaining ourselves by staying inside when we are off, and the bills associated with being on lockdown are rising. Any governmental monetary support to help keep our heads above water is welcome. Although modest, the government is working hard to alleviate some of the pressure. Thankfully, Irish Finance Minister Donohoe recognised that remote working is an essential response to Covid. Workers may now claim tax deductions on utilities such as light, heating, and broadband. So keep those receipts!
Are you Self-Employed?
If you run your own business, the lockdown may be especially hard. Fortunately, you can look forward to increased tax credits too. Minister Donohoe announced: “For the self-employed, I will fully implement a Programme for Government commitment to equalise the earned income credit with the PAYE credit by raising it by €150 to €1,650.” This change can also be applied for 2020.
Along with the good news comes some of the unwelcome price hikes on things like petrol, diesel, and motor tax. This will be hard for those of us who are just getting by. So, think of it as a little nudge to re-evaluate those bills and see where you can save. Did you know you can save money by switching broadband and energy providers every year? You can! Once your contract comes to term, most providers raise the rates.
If you ever wondered how much you could save by switching broadband providers, the time is now! Or, if you are looking to upgrade your home office, WeCompare has the best broadband deals in Ireland, so go on, check your contract and start comparing!