Information Circular No 27/2016 Flat Rate Expense Up-Date


PDFORRA has been advised by the Revenue Commissioners that amended tax certificates have been issued to members of the Defence Forces who submitted their PPS Numbers for the inclusion of the 300 Euro Flat Rate Expense for 2015/2016.


Having spoken with the Revenue Commissioners they confirm that they have undertaken calculations for in excess of 4500 personnel.


The Flat Rate Expense will be applied to all personnel remaining in the employment of the Defence Forces on an annual basis hereafter who have had the Flat Rate Expense applied to their income. The appropriate income tax relief at the individual’s highest tax rate should be incorporated by the Department of Defence in their next payroll run.


Revenue confirmed that it was not possible to apply the auto-update process for all individuals who may be entitled to this Flat Rate Expense. Accordingly, where a qualifying individual doesn’t receive the benefit of the Flat Rate Expense for 2015 and 2016 in their next pay, they should apply online from January 2017 using myAccount, Revenue’s online service, which can be accessed on Revenue’s website.


Once logged-in to myAccount they should submit an online Form 12 in respect of the years 2015 and 2016 claiming the appropriate Flat Rate Expense. Separately they can submit a claim for the appropriate Flat Rate Expense for 2017 using PAYE Services. Note in this respect that the PAYE Services facility is a new service which will only be available from 03/01/2017


The inclusion of this Flat Rate Expense will  give rise to a  return of various   payments, which are dependent on the tax liabilities of personnel concerned, taking into account percentage income payable at 20% and whether personnel are married/single and if  their spouse/partner is  working etc.


Under the foregoing circumstances it is not possible to determine exactly the net gain for personnel resultant from the introduction of this Flat Rate Expense, on an individual basis.


PDFORRA is in the process of circulating a vouched expense claim form to our members through District Committees to assist them reclaim vouched expenses, where those sums exceed the amount provided for by way of the Flat Rate Expense. Additionally, this claim form can be used to recoup expenses where the expense is one incurred, wholly exclusively and necessarily in your employment. This proforma can be used by personnel regardless of current tax liabilities.

Please Display on Notice Boards                                                                                                                              Issued on 7/12/2016

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