Dáil Éireann Debate, Tuesday - 10 February 2026
423. Deputy William Aird asked the Tánaiste and Minister for Finance if he will consider broadening the scope of professions included in the guidelines for flat-rate expenses for self-supplied uniforms; and if he will make a statement on the matter. [10109/26]
View answerRevenue have advised that the flat rate expense (“FRE”) regime is operated by them 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.
The FRE regime developed incrementally over the last 40 to 50 years and was established at a time when the numbers of employees/PAYE taxpayers filing an Income Tax Return was relatively low. This contrasts with the position today, whereby due to significant IT developments in Revenue systems in recent years, as well as the promotion of online channels, Revenue is now providing an easy to use, free, on-line Income Tax Return filing solution for taxpayers. For example, the number of PAYE taxpayers that filed an Income Tax Return for the 2023 tax year was over 1,100,000, when compared to the figure of under 300,000 in 2018.
Revenue have further advised that the FRE is generally determined following engagement between Revenue and the relevant representative body. Notwithstanding that an FRE is not available to a particular group, as for all employees, they retain their statutory right to claim a deduction under section 114 TCA 1997 in respect of actual vouched expenses 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.
If there is no FRE available for an employment category and the employee has incurred qualifying employment related expenses that have not been reimbursed by his or her employer, the amount incurred can be claimed by logging into the my Account facility on the Revenue website. A uniform bearing an employer logo or of a style that is identifiable as a uniform, which employees are obliged to supply, and wear will generally meet the conditions for claiming a deduction.
Further information in regard to the general rule as to deduction of expenses in employment for expenses and making a claim for such expenses is contained in Tax and Duty Manual Part 05-02-20: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-20.pdf.
