Revenue eBrief No. 225/21

14 December 2021

COVID-19 measures related to personal tax matters

In March 2020, a range of concessionary measures related to personal tax matters were introduced, in light of the unprecedented impact of the COVID-19 pandemic.

In December 2020, Revenue confirmed that some of the measures introduced in March 2020 would cease to apply on 31 December 2020, while others would be retained for the 2021 year of assessment. In January 2021, Revenue further confirmed that a number of benefit-in-kind related concessionary measures would also be retained for the 2021 year of assessment.

Revenue continues to regularly review all COVID-19 related matters. It is noted that public health guidance has recently been updated and employees have once again been advised to work from home unless it is necessary to attend the workplace in person. Having regard to the recent changes in public health guidance, the position in respect of all measures retained for the 2021 year of assessment has been reviewed as follows:

• Transborder Workers’ Relief – this temporary, concessionary measure will continue to apply for the period of time in 2022 during which public health measures require an employee to work from home, unless their employment requires that he/she attends the workplace in person.  See section 11 of Tax and Duty Manual (TDM) Part 34-00-06 for further information.
• Benefit-in-kind on provision of COVID-19 testing and facilitation of flu vaccination – these measures will be retained for the 2022 year of assessment and subsequent years, and will be provided for on a statutory basis following enactment of the Finance Bill 2021. See section 16 of TDM Part 05-01-01l for further information.
• Benefit-in-kind on employer-provided vehicles and use of company cars by employees in the motor industry – these measures will remain in place while public health guidance advises employees to work from home. Once public health guidance no longer requires employees to work from home, the legislation will apply in the usual manner. See sections 8 and 9 of TDM Part 05-01-01b for further information.
• Payment of taxi fares by an employer – this measure will remain in place for now and will be subject to further review by 30 June 2022. See section 28 of TDM Part 05-01-01l and section 4.5 of TDM Part 05-01-06 for further information.
• Small Benefit Exemption – this measure (of allowing more than one voucher to be given to an employee) will be retained for the 2022 year of assessment. See section 3 of TDM Part 05-01-01e for further information.
• Benefit-in-kind on employer-provided accommodation – this measure will be retained for the 2022 year of assessment on the basis that ‘temporary’, for the purpose of this measure, means a continuous period of no more than 3 weeks. See section 4 of TDM Part 05-01-01c for further information.

Further guidance on each of the measures above is set out in the relevant Tax and Duty Manuals.

At present, it is not intended that any of the concessionary measures which ceased to apply on 31 December 2020 will be reintroduced. However, as previously noted, Revenue will continue to regularly review all COVID-19 related matters, and if any further measures are considered necessary in the future, published guidance will be updated accordingly.