Cathal Crowe
Ceist:113. Deputy Cathal Crowe asked the Minister for Finance if the rules in relation to flat-rate expenses will be amended to include podiatrists and chiropodists (details supplied). [46651/22]
Amharc ar fhreagraTuesday, 27 September 2022
Ceisteanna (113)
Freagraí scríofa
Section 114 of the Taxes Consolidation Act 1997 (TCA) provides for a tax deduction in respect of expenses incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.
The 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.
Chiropodists and podiatrists
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 sector 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 to apply a FRE, in respect of chiropodists and podiatrists has not been made to them. Should such a submission be submitted from the representative body, outlining the expenses incurred by chiropodists and podiatrists, which satisfy the legislative conditions, it will be considered by Revenue.
Notwithstanding that an FRE is not in place for chiropodists or podiatrists, as for all employees, they 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 or not already included in the relevant FRE amount.
The quickest and easiest way to claim tax relief for qualifying employment expenses (including any FRE) is to complete an online Income Tax Return. This return can be found in the PAYE Services tab in myAccount on the Revenue website.
Detailed guidance on membership fees paid to a professional body is available on Revenue’s website:
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-18.pdf.
Further guidance on the general rule of deduction of expenses in employment is also available on Revenue’s website: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-20.pdf.