Róisín Shortall (Dublin North West, Labour)
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Question 318: To ask the Minister for Finance the tax credits available where work related expenses are incurred by a PAYE worker such as clothing, uncompensated petrol expenses and so on; and if he will make a statement on the matter. [34339/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that, where a PAYE worker is not reimbursed in respect of the cost of his/her work related expenses, then he or she may claim a tax deduction in respect of — (a) the cost of expenses of travel necessarily incurred in the performance of the duties of an office or employment; and (b) the cost of expenses, other than expenses of travel, wholly, exclusively and necessarily incurred in the performance of the duties of an office or employment.

However, it is a long established principle of tax case law that the expenses of travelling from home to work and work to home are not expenses of travelling necessarily incurred by an employee in the performance of the duties of an employment and do not qualify for a deduction.

The cost of clothing does not, generally, qualify for tax relief. However, where the duties of his/her employment require an employee to incur the cost of protective clothing, then a deduction may be due in respect of the cost of such outlay.

I am further informed by the Revenue Commissioners that, as an alternative to employees submitting individual expenses claims to them, agreements have been entered into between Revenue and employee representative bodies (e.g. trade unions) resulting in what are known as 'flat rate' tax deductions in respect of qualifying employee expenses. The Revenue Commissioners publish such agreed flat rate expenses deduction on their website [Go to www.revenue. ie/publications/txbrefng/tb06supl — the list of agreed flat rate employee tax deductible expenses are on pages 30 to 32 of this Index].