Dáil Éireann Debate, Wednesday - 3 March 2021
184. Deputy Ged Nash asked the Minister for Finance if the Revenue Commissioners will review the list of eligible sectors from which workers can claim relief for expenses incurred by virtue of their job to include early years educators; and if he will make a statement on the matter. [11102/21]
Amharc ar fhreagraThe 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.
I am advised by Revenue that a submission was received from one body who represent 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. I am further advised that correspondence was received from a separate representative body who represent 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.
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 which the expenses are not reimbursed by the employer.
