What
are the advantages of eWork for employees?
The main advantages from an employee's perspective
are:
What
are the disadvantages?
What
about planning permission and business rates
for working at home?
Planning
permission is rarely a problem in practice. Some
local authorities (for example, Dublin Corporation)
are moving towards allowing home-based economic
activity within dwelling houses as standard. It
is advisable to discuss the issue with council
planning departments. The Department
of the Environment has stated that:
Business
rates therefore could apply to home offices
in certain circumstances, so it may be useful
to seek professional advice.
Are
there any specific tax concerns related
to eWorking for employees?
There
are three main taxation issues:
-
Benefit-in-kind
(BIK);
- Capital
gains tax (CGT);
- Travel
expenses.
Currently
where an employer provides computer equipment
or facilities to an employee that could
be used for purposes other than work, a
liability for BIK tax arises. In practice,
the amounts are small and have not been
collected by the Revenue Commissioners. BIK
can also arise on payment for expenses such
as heat and light or cleaning of a home
office, where there may be some element
of profit to the employee.
A
CGT liability could arise if part of a property
has been used exclusively in connection
with employment and the property is later
sold at a profit. However, if no part
of the home is used exclusively for business,
no liability should arise.
If
an employee is instructed in writing to
work from home, expenses for travel to other
workplaces such as central offices or customer
sites may be allowable as business expenses. However,
this is a grey area where no general tax
guidance is available - each case must be
considered on its own merits.
What
are the insurance and liability implications
for the company?
