Measures to contain the COVID-19 pandemic have caused many employees to work from home; a novel situation in which individuals used information systems (IS) more intensively to stay in touch with coworkers. This novel IS use situation affected individuals differently and resulted in both positive and negative outcomes. Recent calls for research advocate for clarification regarding the conceptualisation of appraisal, which explains different individual responses to objectively equal environments. In particular, challenge-hindrance-research does not differentiate between primary and secondary appraisal. Therefore, it remains unclear how individual capability beliefs, such as self-efficacy, affect challenge and hindrance IS use appraisal. We conduct an empirical study with 1,553 German employees to investigate these relationships and the positive and negative outcomes during the COVID-19 pandemic. We find that challenge and hindrance IS use appraisal, and remote working self-efficacy are interconnected, yet different constructs. We find that self-efficacy is related to challenge IS use appraisal, rather than hindrance IS use appraisal. Further, challenge IS use appraisal is a driver for performance in a remote working environment. We conclude that there are stressful aspects of IS use that are not influenced by an individual’s belief in their abilities. Our study emphasises the importance of remote working self-efficacy and IS use appraisal to mitigate techno-distress and increase performance during remote work.