Wednesday, 8 May 2019
Department of Finance
I am advised by Revenue that they operate the Flat Rate Expenses (FRE) regime on a concessionary basis, where both a specific commonality of expenditure exists across an employment category and the statutory requirement for tax deduction set out in section 114 Taxes Consolidation Act 1997 (TCA) is satisfied. To qualify for a deduction under that section, an expense must be wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment. FRE can only be allowed where it meets the criteria for deduction.
Following discussions with the representative body for the employees in question, Revenue agreed an FRE deduction for miners of €120 per annum. Revenue’s ongoing general review of the FRE regime involves a review of all FRE categories currently in place. In the interest of fairness to all sectors and employees currently benefitting from the regime, Revenue decided that the effective date for implementation of any changes to FRE deductions would be deferred until 1 January 2020. Revenue intends to have its review fully completed by that date. This approach will ensure that any changes to the FRE regime do not impact on any specific group earlier than the rest.
Outside of the FRE regime, employees retain their statutory right to claim a deduction under section 114 TCA for any expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent which the expenses are not reimbursed from any source.