Revenue eBrief No. 321/24

16 December 2024

General Rule as to Deduction of Expenses in Employment

Tax and Duty Manual Part 05-02-20 – General Rule as to Deduction of Expenses in Employment - has been updated as follows: 

• A new paragraph 3 - Claiming Employment Expenses (other than FRE allowances) - has been added to provide guidance 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 their employment, that are outside of the Flat Rate Expense (“FRE”) allowance regime.
• Paragraph 5 - Continuous Professional Development (CPD) - has been updated to explain the circumstances where 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.
• The guidance in paragraph 6 pertaining to the deductibility of typical expenses has been expanded upon to provide greater clarity.
• A new paragraph 7 - Flat Rate Expense (“FRE”) allowances – has been included in the manual. This paragraph provides detailed guidance on how to make a claim for an FRE allowance, including how to claim the increase in the FRE allowance available for eight employment categories - effective from 1 January 2023.