A Complete Guide to Claiming Household Expenses as an Employee in Ireland

If you work from home, whether full-time, hybrid, or a couple of days a week, you're paying extra for electricity, heating, and broadband that your employer's office would otherwise cover. The good news is that Revenue allows you to claim tax relief on those additional costs. The less good news is that most employees either don't know they can claim, or they claim incorrectly.

This guide explains exactly what household expenses employees can claim, how to calculate the relief, what your employer can do to help, and how to submit the claim to Revenue without making the mistakes that trigger queries.

What Household Expenses Can Employees Claim Tax Relief On?

The relief covers the additional costs you incur because you work from home. Not your entire household bills; just the portion that's directly attributable to working from home instead of in the office.

The costs you can typically claim:

• Electricity: The additional electricity used during your working hours at home.
• Heating: Additional heating costs for the room you work in during work hours.
• Broadband/Internet: A proportion of your broadband bill, based on work use.

What you generally cannot claim:

• Rent or mortgage payments. Working from home doesn't make your housing costs a business expense.
• Home improvements, renovations, or general maintenance.
• Food and drink consumed at home during work hours.
• General household bills that aren't connected to your work use (water rates, property tax, home insurance).

The key word is "additional." If you'd have been paying for heating and broadband anyway, you can only claim the incremental cost that working from home creates. Revenue expects a reasonable apportionment, not a claim for your entire utility bill.

Who Is Eligible to Claim E-Working Expenses?

You're eligible if you work from home as part of your employment duties and you incur costs that aren't fully reimbursed by your employer. Revenue uses the term "e-working" to describe employees who perform their duties from home.

Eligible arrangements include:

• Full-time remote workers: Employees who work from home every day.
• Hybrid workers: Employees who split their time between home and office. You claim for the days worked from home only.
• Part-time employees: Full-time or part-time status doesn't affect eligibility. What matters is whether you work from home and incur additional costs.

You are not eligible to claim if:

• You choose to work from home when your employer provides an office. The relief is for employees who work from home as part of their job arrangement, not personal preference.
• Your employer fully reimburses your expenses. If you've already been made whole, there's nothing additional to claim.
• You're self-employed. Sole traders and company directors have different rules for home office expenses.

Keep a record of your work-from-home days. You'll need this for the calculation and potentially to support your claim if Revenue queries it.

How Does the €3.20 Per Day Employer Allowance Work?

Your employer can pay you €3.20 per day for each day you work from home without it being treated as a taxable benefit. This is the simplest route for both parties.

How it works:

• The employer pays €3.20 per day worked from home.
• This payment is exempt from income tax, PRSI, and USC.
• No receipts or detailed calculations are required from the employee.
• The employer must keep a record of the days the employee worked from home.

For an employee working from home three days a week (roughly 144 days a year), that's approximately €461 per year tax-free.

If your employer pays you less than €3.20 per day, or nothing at all, you can claim the difference (or the full amount) as a tax deduction directly from Revenue. If your employer pays the full €3.20, you cannot make an additional claim for the same costs.

How Do You Calculate Your Household Expense Claim?

If your employer doesn't pay the €3.20 allowance (or pays less), you can claim tax relief on 30% of your vouched electricity, heating, and broadband costs, proportioned to the days you worked from home.

Here's the step-by-step method:

1. Gather your utility bills for the relevant tax year. You need the annual totals for electricity, heating (gas or oil), and broadband.
2. Calculate the work-from-home proportion. If you worked from home 3 days out of 5, the proportion is 60%. Apply this to 365 days to get your home-working days (roughly 144 working days out of 240 working days = 60%).
3. Apply the 30% rate. Revenue allows a deduction of 30% of the proportioned costs for electricity, heating, and broadband.
4. Subtract any employer reimbursement. If your employer paid some of the costs, deduct that amount from your claim.

Example: Hybrid Employee Working 3 Days From Home

Cost	Annual Bill	WFH Proportion (60%)	30% Deduction
Electricity	€2,100	€1,260	€378
Heating (gas)	€1,400	€840	€252
Broadband	€720	€432	€130
Total deduction			€760

The €760 is not a refund; it's a tax deduction. At the marginal income tax rate of 40%, the actual tax saving would be approximately €304 (plus USC savings). At the standard rate of 20%, it would be approximately €152.

Example: Employee With Partial Employer Reimbursement

If your employer pays €2.00 per day for 144 days (€288 total), you subtract that from your calculated deduction. So €760 minus €288 = €472 net claim. The tax saving is then based on €472 rather than the full amount.

Can Employees Claim for Home Office Equipment?

This depends on the circumstances. If your employer provides equipment (laptop, monitor, desk, chair), there's no claim because you haven't incurred the cost. If you purchased office furniture or equipment yourself specifically for work, you may be able to claim a deduction, but this is assessed on a case-by-case basis.

Revenue's general position is that equipment provided by the employer for business purposes is not a taxable benefit. If the employer requires you to have a specific setup and doesn't provide it, the cost may be allowable as an expense. Keep receipts and document the business purpose.

For items with private use as well (a desk in a shared room, for example), only the business-use proportion is deductible. Be reasonable with apportionment. A claim for 100% of a desk that your children also use for homework won't hold up.

How Do You Submit Your Claim to Revenue?

You claim the tax relief through your annual income tax return (Form 12 for PAYE employees) on Revenue's myAccount portal.

1. Log in to myAccount.
2. Go to "Manage Your Tax" and select the relevant tax year.
3. Under employment expenses, select the e-working / remote working relief.
4. Enter the number of days worked from home and the costs incurred.
5. Submit the claim.

Revenue processes most claims within a few weeks. The refund (if any) is paid directly to your bank account or adjusted against your tax credits for the following year.

Keep your utility bills, broadband invoices, and a record of your work-from-home days for six years. Revenue can request supporting documentation at any time.

What Are the Most Common Mistakes When Claiming Household Expenses?

1. Claiming for days not worked from home: If you were in the office, on annual leave, or on sick leave, those days don't count. Only actual work-from-home days qualify.
2. Not apportioning correctly: Claiming 100% of your broadband bill when you share the house with a partner who also uses it is not reasonable. Apportion based on work use.
3. Double-claiming: If your employer pays the €3.20 per day allowance, you can't also claim the 30% deduction for the same costs. It's one or the other.
4. Including ineligible costs: Rent, mortgage, food, water, and general maintenance are not claimable. Sticking to electricity, heating, and broadband keeps the claim clean.
5. Not keeping records: If Revenue queries your claim, you'll need to produce utility bills and evidence of your work-from-home pattern. "I work from home sometimes" is not sufficient documentation.
6. Forgetting to claim at all: Many employees are entitled to this relief and simply don't know about it. If you've been working from home and haven't claimed for previous tax years, you can submit claims going back four years.

Frequently Asked Questions About Household Expense Claims

Can I claim for previous years if I didn't claim at the time?

Yes. You can submit claims for up to four previous tax years through myAccount. If you've been working from home since 2022 and never claimed, you could potentially claim for 2022, 2023, 2024, and 2025 (once that tax year is complete).

What if I rent and my landlord pays the utility bills?

If the utility bills are in your landlord's name and you don't pay them directly, you generally can't claim the relief because you haven't incurred the expenditure. If you pay a contribution towards utilities as part of your rental agreement, keep evidence of those payments.

Does working from home affect my employer's tax obligations?

If your employer pays the €3.20 per day allowance, they must keep records of the days you worked from home. The payment itself is exempt from payroll taxes, so there's no additional PAYE, PRSI, or USC to deduct. If the employer pays above €3.20 per day without matching receipts, the excess is taxable.

Can I claim if I'm a company director who works from home?

Company directors are typically office holders and may have different rules. The e-working relief is primarily for employees. Directors should take advice on whether the relief applies to their specific arrangement, or whether the company can pay the expense directly as a business cost.

Need Help Claiming Your Household Expenses?

If you're not sure whether you're claiming correctly, or you haven't claimed at all, we can help. We review your eligibility, calculate the deduction, and submit the claim through myAccount. For employers, we set up the €3.20 per day allowance through payroll and ensure compliance with Revenue's record-keeping requirements.

Get in touch today with your utility bills and work-from-home schedule. We'll calculate what you're owed and get the claim submitted.

Contact First Accounts

Disclaimer: This guide is for general information purposes only and does not constitute tax advice. Tax rules and thresholds can change. Always consult a qualified accountant or tax adviser for advice specific to your circumstances.