No change to flat rate expenses regime for now

Dec 09, 2019

According to the Revenue press statement concerning the flat rate expenses review, any planned changes are deferred for another year until January 2021. The deferral is pending the review by the Tax Strategy Group (TSG) of tax policy and legislative options in relation to several aspects around the entitlement to tax relief for expenses incurred in employment.   

As we reported in Tax eNews bulletins, Revenue have been reviewing the flat rate expenses for the past 18 months and changes were expected to be introduced from 1 January next. In response to questions before the Public Accounts Committee last week, the Revenue chairman signalled that the flat rate expenses review might not happen on 1 January 2020.  

Now, to allow time for the Tax Strategy Group (TSG) to consider the matter of flat rate expenses as part of their review of the tax policy and legislative matters relating to employment expense. Any changes are deferred. 1 January 2021 is now the expected date.  

The review by the TSG is due to also include two matters; reinstatement of tax relief for trade union subscriptions and tax relief for professional subscriptions.  

Correspondence between the Revenue chairman and the Minister for Finance provide details on deferral of any changes to the flat rate expenses.  

The Institute welcomes this announcement and update from Revenue. We will keep members informed of any developments.