Flat-rate expense allowances

Flat-rate expenses are those that cover the cost of equipment your employee needs for work. This equipment may include tools, uniforms and stationery.

Your employee must incur these costs in performing the duties of their employment, and the costs must be directly related to the nature of their employment. Flat-rate expenses are available to a wide range of professions. You can find details on the flat-rate expenses list.

The amount of the deduction is agreed between Revenue and representatives of groups or classes of employees (usually trade union officials). All employees of the class or group in question can then claim the agreed deduction in their own tax credits.

Flat rate expenses can be claimed by completing a Form 12. You can find this form in PAYE Services in myAccountYou can do this by following these steps:

  • Sign into myAccount.
  • Click on ‘Review your tax’ link in PAYE Services.
  • Select the Form 12 for the relevant tax year.
  • In the ‘Tax Credits & Reliefs’ page select ‘Flat rate expenses’ and add it as a tax credit.

Revenue are currently carrying out a review of the flat rate expense allowances. This is expected to be completed by the end of 2019. The effective date for the implementation of any changes arising from the review is deferred until 1 January 2020.