Leo Varadkar (Dublin West, Fine Gael)
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Question 203: To ask the Tánaiste and Minister for Finance the different types of worker or employee who may claim expenses against income tax; the amount allowable for each employee or worker for each of the past three years; his views on whether these employees or workers are generally claiming expenses; and if he will make a statement on the matter. [23939/07]

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. 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 on their website the agreed flat rate expense deductions for the different categories of employee. For ease of reference, the relevant details are set out in the annexed table.

I am informed by the Revenue Commissioners that in addition to details of flat rate expenses due to employees being available on their website, representative bodies (including trade unions) generally circulate their members with information on the amount of the expenses due for the various categories of employee and the employees, in turn, make a claim to their Revenue office. Employees were reminded that they could claim flat rate expenses by using the ROS PAYE Self- Service System in early 2007. This reminder was contained in the PAYE Notice to Employees sent to all taxpayers with their tax credit certificate for 2007. A similar reminder will be included in the 2008 Notice.