Dáil Éireann Debate, Tuesday - 10 February 2026
399. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance if he would consider introducing tax relief for PAYE individuals who engage the services of an accountant for the purposes of their tax return and incur fees. [9357/26]
Amharc ar fhreagraI am advised by Revenue that no deduction or relief is available against employment income except to the extent expressly permitted by the Tax Acts. The legislation governing the deductibility of expenses from employment income is contained in section 114 Taxes Consolidation Act 1997 (“TCA 1997”). To qualify for tax relief under this section, the expenses must be wholly, exclusively and necessarily incurred in the performance of the duties of the relevant employment.
The provisions of section 114 TCA 1997 are strictly applied, with a body of case law supporting the interpretation and application of this section. Under this section, the expense must be incurred in the actual performance of the duties of the office or employment or as a direct consequence of those duties and should not arise because of the personal circumstances or preference of the individual. Accountancy fees incurred solely for personal tax compliance, do not meet the test of wholly, exclusively and necessarily incurred in the performance of the duties of the employment. This means that such expenses are not deductible against employment income.
As the Deputy will appreciate, proposals for the amendment of tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
Furthermore, any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
