COVID-19: Contractor Expense Questions

With many Contractors working from home, the biggest question we get is around what expenses they can claim.  In summary, it is possible to claim whatever extra costs that you have to incur whilst working from home during COVID-19.

Below is a list of the questions and our answers.

Can you give me an overview of the expenses I can claim?

• Office Furniture
• Computer & Office Equipment
• Cabling
• Broadband/Telephone
• Light & Heat (Apportionment)
• Upkeep of office
• Software costs
• E-worker allowance of €3.20 per day
• Additional insurance costs

I want to claim the e-workers allowance of €3.20 per day, how does this work?

You are allowed claim this as an allowable business expense. This allowance is to cover the cost of utility bills.

If I don’t claim the €3.20 per day can I claim a portion of my utility bills?

Yes.  You can claim a portion however, you need to come up with a calculation based on the actual costs versus the time spent in your home. Generally, Revenue will allow you claim 10%, if it’s more you need to provide a calculation.

Can I claim a portion of my mortgage as office rent?

No, this would make you a landlord and the amount received would be taxable in your hands.

Can I claim a portion of my Home Rent as office rent?

In the past Revenue have disallowed this as an allowable expense as the property is a residence.

I have bought a mobile heater for my home office, can I claim this as an expense?

Yes, once it’s a reasonable cost and necessary to enable you work from home.

Can I claim subsistence every day as it’s not my normal place of work?

No. It is not possible to claim subsistence whilst working from home.

During COVID-19 lockdown I am required to travel to a client’s site and I normally take public transport but for health and safety reasons. I am required to travel via taxi or private car by my client?

Revenue have stated that in these circumstances vouched taxi fares would be classed as allowable expenses. In relation to motor vehicles they haven’t given guidance but our advice is that any extra vouched costs you have to incur you can claim, e.g tolls, parking, fuel.

I am buying office furniture, can I claim the VAT back?

For larger items like Computer Equipment and office furniture you will be able to claim the VAT element back fully, providing you have a valid VAT receipt that includes the name of your limited company and a breakdown of the VAT paid.

I am purchasing Computer Equipment online from the UK, can I claim the UK VAT back?

If purchasing through the UK, you should give the vendor your Irish limited company VAT Number, they are not obliged to charge you the VAT if you are VAT registered. If you don’t know the company VAT number, please ask your Icon Accounting Account Manager and they will give it to you.

If you have any other questions relating to this, please feel free to contact your Account Manager.