There is a commitment in the Programme for Government to index-link tax bands and USC rates to wage inflation to prevent a real increase in workers’ tax burden.

The paper estimates that wage inflation may currently be 1.5-2%.

It also considers tax relief for remote workers.

The paper notes that pre-pandemic, an estimated 22% of the labour force worked remotely.

The percentage who said they ‘usually or sometimes’ worked remotely rose to 38% at the end of 2020.

It lists a number of options including a per-day working-from-home allowance which would remove the necessity to keep track of utility bills.

Alternatively, an increase in the percentage of utility bills which can be claimed as an expense to 20 or 30%.

There is also the option of a working-from-home tax credit.

The paper also examines the Trans-Border Workers’ Relief which is a concession applied to workers resident in the Republic who work in Northern Ireland.

The paper concludes that “…it appears unworkable and challenging…” to put this relief on a statutory basis and apply it to all workers who may be resident here and working for a company based abroad.