Revenue has announced that employees who qualify for the Flat Rate Expense (FRE) allowance will remain eligible to claim this benefit in 2025. The FRE regime, managed administratively by Revenue, is designed to provide tax relief for specific employment-related expenses.
Examples include tools, uniforms, and statutory registration fees. These expenses must meet the conditions outlined in Section 114 of the Taxes Consolidation Act (TCA) 1997.
Who is eligible?
To qualify, expenses must be:
- Wholly, exclusively, and necessarily incurred during the performance of duties for the employment or office.
- Not reimbursed by the employer.
How to claim the FRE allowance
Revenue emphasises that employees must submit a claim annually to avail of the FRE allowance. The quickest and most convenient way to apply is through Revenue's online service, myAccount. There are two ways to proceed:
- In-Year Claims: Using the PAYE Services tab in myAccount, employees can claim the allowance for the current tax year. Once submitted, the FRE allowance is reflected in an amended Tax Credit Certificate (TCC), and the benefit is processed via payroll.
- Out-of-Year Claims: For allowances related to previous tax years, employees can file a claim by completing an annual Income Tax return through myAccount.
The details of FRE rates for years up to and including 2025 can be accessed here. Additionally, comprehensive guidance on the FRE regime is available via the following links:
Employees are encouraged to use the detailed resources provided by Revenue to ensure they can claim their allowances effectively and maximise their tax benefits under the FRE scheme. Revenue is working to ensure employees in eligible employment categories are supported in managing their work-related expenses effectively.
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