General rule as to deduction of employment expenses

Revenue has updated the Tax and Duty Manual regarding the general rule as to the deduction of expenses in employment. New guidance is provided on how to make a claim for employment expenses in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of employment that are outside the flat rate expense (FRE) allowance regime (paragraph 3).

New detailed guidance is also provided on how to make a claim for a FRE allowance together with details of eight employment categories in which the FRE increased with effect from 1 January 2023 (paragraph 7).

The manual has also been updated as follows:

• the circumstances where expenditure on a course is regarded as relevant to the business of an employer for the purpose of deciding whether the cost of such courses is regarded as a taxable benefit when paid for or reimbursed by an employer (paragraph 5), and
• the deductibility of typical expenses (paragraph 6).