Taxes Consolidation Act 1997 section 115

Fixed deduction for certain classes of persons

Section 115 empowers the Minister for Finance to fix standard expense deductions (known as flat rate expense allowances) for classes of employees whose duties require them to incur work-related expenses.

• The Minister for Finance may set a fixed annual deduction for any class of employee who is obliged to spend money wholly, exclusively and necessarily in performing their duties.
• The fixed sum represents a fair equivalent of the average annual amount laid out by persons in that class and is deducted from their salary, fees or emoluments before computing the tax charge.
• Where an individual's actual qualifying expenses exceed the fixed sum, the higher amount may be claimed instead.
• Although the section refers to public revenue employees, equivalent flat rate expense allowances are available to private sector employees in agreed categories, with the amounts negotiated annually with trade unions.