Dáil Éireann Debate, Tuesday - 20 September 2022
219. Deputy Emer Higgins asked the Minister for Finance his views on the feasibility of adding beauticians, hairdressers and childcare workers to the existing list of workers who can claim flat-rate expenses; and if he will make a statement on the matter. [45770/22]
View answerThe flat rate expense (FRE) regime is operated by Revenue on an administrative basis where both a specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 of the Taxes Consolidation Act (TCA) 1997 is satisfied, namely, that the expenses are wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment by the employee concerned and that such expenses are not reimbursed by his or her employer.
The FRE regime was established to apply a uniformity of approach to tax deductibility for expenses of large groups of employees and to facilitate ease of administration for both Revenue and employees. The expense should apply to all employees in that category and not be discretionary. Revenue has advised me that it will consider FRE applications where a large number of employees incur broadly identical qualifying expenses which are not reimbursed by their employer.
Applications are generally made by the representative bodies in the employment sectors concerned and are considered by Revenue based on the specific commonality of expenses within the employment category and compliance with the strictly applied statutory requirement for a tax deduction.
Childcare workers
I am advised by Revenue that a submission was received from one body which represents early years educators in 2017, and having considered the submission, Revenue was not in a position to apply a flat rate expense, as the expenses were not wholly, exclusively and necessarily incurred in the performance of the duties of the employment. Furthermore, correspondence was received from a separate representative body which represents early years educators in 2018 requesting a flat rate expense, however, to date no submission has been received. Should Revenue receive a submission it will be considered.
Beauticians and hairdressers
I am advised by Revenue that they received correspondence in 2021 from the Hair and Beauty Industry Confederation (HABIC) which is the representative body for the personal grooming industry (beauticians, hairdressers, barbers, nail tech, spa therapists, skin specialists etc.). However, to date no submission has been received. Should Revenue receive a submission it will be considered.
A flat rate expense for cosmetologists was introduced many years ago following engagement between Revenue and a society representing qualified therapists, providing skin care treatments, who were obliged to supply and launder their own white uniforms. This FRE allowance however is specific to employees in this category only.
Finally, Revenue advises me that it remains committed to the FRE regime and encourages all taxpayers to avail of their full tax relief entitlements. It should be noted that all employees retain their statutory right to claim a deduction under section 114 of the TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent to which the expenses are not reimbursed by the employer.
