Moving work from office to home

G

Gordanus

Registered User
Messages
685
I'm a sole trader. I've had a huge switch-around in work. Previously all work would have been in person, and I have an office in town that I worked in. But since lockdown in March, everything has moved online, and it's been quite a success.

So I'm asking myself why am I paying rent on an office that I no longer use - why don't I stay as I am, working from home, forever? Seeing it's working really well and most people find it more convenient.

But of course my home isn't set up as a workplace so I've been using a spare room. Except that others would like to use it too.

So if I were to convert the attic into a dedicated workspace.... would that be tax-deductible? It'd keep me away from inadvertent interruptions, and give the family back the spare room, and I'd be happy to have a proper office again. Anyone know?
 
Thirsty said:
I was interested in this myself (not the attic conversion but a 'Shomera' type thing.)
came across this which might be a start:

Building a Home Office | Home Office Expenses | Icon Accounting - Accountancy Services for Contractors

Have you needed a home office? Here is the description of the Building a Home Office - Home Office Expenses. Do you have any questions about claiming for your home office? Contact us at the Icon Accounting Advisory team.
www.iconaccounting.ie www.iconaccounting.ie
Click to expand...

That link is specific to the situation of a Ltd Company. The OP is a sole trader, so not all of the advice in that article is applicable to them. In particular, the bit about it not affecting one's CGT exemption for a PPR.
 
The daily tax free allowance only applies if you are paid it by your employer. Not sure how that would work out being a sole trader.
Your employer can give you €3.20 per day as an allowance which is tax free.

Working from home and tax relief

You may be able to claim tax relief on the additional costs of working from home, including electricity, heat and broadband.
www.citizensinformation.ie www.citizensinformation.ie

If your employer does not pay a daily allowance you can claim a tiny amount back through your tax.
e.g If your heating/electricity bills come to 2k per year you can claim an allowance of 10% of this which is taxed so it's only worth you about 100 euro per year if on the higher tax bracket.

Allowable utility bills x No. of e-working days / 365 days

so somebody in revenue has calculated that it can cost an additional €3.20 per day to work from home if your employer gives you an allowance but that it only costs you about 0.40 cent a day if you don't get a subsidy from your employer. It's even lower if you are on the lower tax bracket.

I think this is an unfair treatment on those who do not get subsidized by their employer for the additional heat, electricity and wear and tear on your home.
 
Last edited:
You must log in or register to reply here.
Back
Top