Revenue Checks People Claiming Tax Relief on Remote Work Expenses
Revenues carry out checks on workers who claim tax relief on remote work expenses and request calculations to support the relatively small amounts claimed.
ax officials have reached out to taxpayers and accountants in recent weeks via the Revenue online service to request verification of claims on tax returns for 2020.
Accountants say the cost of detailed relief calculations outweighs the benefit of a refund for most customers – between $ 100 and $ 200 per year, according to Taxback.com.
They also warn that people who work from home and seek a tax refund on remote work expenses must have the proper documentation in order to support the claim or risk an audit.
To date, just over 800,000 PAYE taxpayers have filed a tax return for 2020. Only 10% of these returns contain a request for remote work assistance with a gross value of over $ 10.8 million. euros, despite the fact that many other employees worked remotely in 2020 and 2021.
The checks arrive as self-assessed taxpayers and their tax agents prepare for the payment and filing deadlines of October 31 for paper returns and November 17 for electronic filing.
The Accounting Bodies Advisory Committee – Ireland (CCAB – I) has been pushing for extensions to these deadlines in light of disruptions to accounting practices and their clients due to Covid.
But Revenue has advised late filers to either file a “best estimate” return that will be revised later, or to individually ask Revenue for an extension.
However, tax officials say it’s impractical in light of the burden of paperwork this year.
“Unfortunately, as Revenue refuses to grant a filing extension beyond November 17, we will not be able to include any remote work allowance requests for clients in their 2020 tax return,” said Jeffrey Case, member. from a group of accountants in the Midlands who have called for later deadlines.
“Following Revenue’s advice for submitting a best estimate will not work if Revenue searches for the supporting documents within 10 days of filing the return. “
A spokesperson for Revenue said remote work relief calculations should be done before submitting a tax return anyway so that tax officials can accurately determine the value of the claim.
The spokesperson also said receipts should be made available to Revenue’s online receipt tracking service or kept by the taxpayer for six years.
“It is a common practice of the tax administration to constantly monitor the risks, to carry out verification checks to confirm the eligibility of the claims made and to recover the sums paid on the basis of a claim that is
subsequently deemed ineligible, ”Revenue said in a statement to the Independent Irish.
Employees who work from home and do not receive an allowance from their employer can claim 30% of the guaranteed broadband, heating and electricity charges to help cover the personal costs of remote working.
The 2022 budget increased the amount that can be claimed on heating and electricity from 10pc to 30pc after
speeches by Tánaiste Leo Varadkar.
However, critics have
rejected the increase as insufficient because it only puts € 50 back into the pocket of a worker on the lower tax bracket and around € 100 for an employee on the higher rate.
The Irish Trade Union Congress has called the relief “cumbersome to use” and hardship for workers who need money when utility bills come due, rather than after filing a return for the money. .