What is the home office relief for self-employed in Ireland and how do I claim it?

Self-employed people in Ireland can claim a proportion of home running costs as a business expense when they work from home. Revenue allows a deduction based on the portion of the home used for business and the proportion of time. The most common method is an e-workers flat rate: Revenue's e-worker guidance sets an allowance for utility costs. However, for self-employed (as opposed to employees), you calculate actual costs based on: 1. Space proportion: business rooms ÷ total rooms 2. Time proportion: hours worked from home ÷ total hours in the period 3. Apply combined rate to: electricity, heating, broadband (apportioned), mortgage interest (not capital), or rent Example: 5-room house, 1 office, used 40% of the time for business: 1/5 × 40% = 8% of total annual utility bills is deductible. Note: if you own the property and exclusively use a room for business, you may have capital gains tax implications on that portion when selling — Revenue scrutinises exclusive business use claims.

• Calculate: (business rooms ÷ total rooms) × (% time used for business)
• Apply the combined rate to: electricity, heating, broadband, rent or mortgage interest
• Broadband and phone: claim the business-use proportion separately
• Exclusive business use of a room may trigger CGT issues on sale
• Keep utility bills and document your apportionment calculation