Flat Rate Expense Claims. What is happening?

Nov 21, 2018

Revenue are currently reviewing flat rate expense claims for employees and have said that entitlement to these expenses will be removed for over 80,000 workers from 1 January 2019.  These expenses are a form of compensation to workers who incur necessary costs in carrying out their work and include the costs of cleaning uniforms, the purchase of tools and the likes. Despite comments by the Taoiseach during Leader’s Questions this week that the review could perhaps be delayed until 2020, we have had no confirmation from Revenue that this will be the case.

We asked Revenue for the details of the changes and Revenue have said that employees working in the following industries will see their entitlement to flat rate expenses removed from 1 January 2019:

  • Shop assistants
  • Journalists in employment
  • Agricultural Advisers
  • Cardiac Technicians
  • Professional valuers in the Valuation Office
  • Freelance actors in employment 

Revenue said that the flat rate expense categories initially selected by Revenue for review in 2018 were based on a combination of two factors, the quantum in terms of number of claimants and the value. Revenue will continue its work in this area during 2019.  

Chartered Accountants Ireland released a press statement on this issue last weekend, which was widely reported in the media, voicing considerable concern that this review could impact over 500,000 workers.  Read the full press statement.