Changes in taxation for people working from home as a result of Covid-19 welcomed

Changes in taxation for the increasing number of people working from home as a result of Covid-19 restrictions have been welcomed.

Speaking to Donegal Live, Donegal Cathaoirleach Rena Donaghey said the changes were important at a time when more people than ever are following the government advice to work from home when possible.

Cllr Donaghey said: “The Revenue has published new guidance for remote workers claiming tax relief on Working From Home expenses.

“It allows for a Covid-19 concession of a 10% deduction for electricity and heating bills and a 30% deduction for broadband bills. If a bill is shared, for example between flatmates, the cost can be apportioned based on the amount paid by each person.

“I welcome the fact, the Duty Manual on e-working and tax has been updated as of October 22, to include the new category of ‘Remote Working (e-Working) Expenses’ to be used by employees when making a claim. It also includes an example of the calculation of the allowable expenses.”

Further details on the taxation changes for remote workers can be found here.

The VAT rate for the tourism and hospitality sector will also drop from 13.5% to 9% from today. (Sunday, November 1, 2020).

Cllr Donaghey said: "This rate reduction will apply to: catering and restaurant services; tourist accommodation; cinemas and theatres; museums & historic houses; open farms; amusement parks; certain printed matter; and hairdressing. The change will apply to December 31, 2021."