Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The taxation treatment of travel and subsistence expenses incurred by self-employed individuals is well established by provisions contained in tax law and principles laid down in case law. The general position is that travel expenses incurred in furtherance of business are deductible, whereas expenses incurred in travelling between work and home are not.

In regard to subsistence expenses, the general position is that expenditure incurred on food in the course of a business is not deductible.

In the case of expenditure incurred by self-employed contractors, unlike employees and office holders, self-employed contractors are entitled to a tax deduction in respect of all expenditure incurred by them wholly and exclusively for the purposes of their trade. As already stated, this includes travel expenses incurred for business purposes. In addition, whereas officeholders and employees must necessarily incur travel expenses and subsistence relating to that travel in the performance of their duties in order to qualify for tax-free reimbursement, there is no requirement that self-employed contractors must necessarily incur the expense. The necessity of the expense is irrelevant once it is incurred in furtherance of the trade, subject, of course, to the restriction on travel to a place of work, as I have already mentioned. In the case of a contractor engaged by an enterprise to deliver services at its place of business, that place of business will generally be the place of work of the contractor for the duration of the contract.

Therefore, on the basis that self-employed contractors are already permitted to take tax deductions for a wide range of business expenditure, and that the tax treatment of travel and subsistence expenditure is well established and based on long-standing principles, I do not propose to accept the amendment.