Revenue is to further defer changes to the flat rate expenses regime to 2022 because of the impact of the Covid crisis on the labour market.

Last year, Revenue carried out a comprehensive review into flat-rate expenses and concluded that some of the existing allowances were no longer valid. The review also highlighted that several aspects of the regime warranted consideration from a tax policy and legislative perspective.

Minister for Finance Paschal Donohoe wrote to Revenue chairman Niall Cody late last month in which he voiced concern over the appropriate timing of introducing changes to the regime in light of the pandemic. Mr Cody said in response he had no issue with a further deferral until January 1st, 2022.

Revenue also said on Friday that it intends to write next week to approximately 131,000 PAYE taxpayers who, in the last five years have paid tax but have not claimed any additional tax credits or reliefs. These taxpayers are being reminded that there is a four-year time limit for claiming tax refunds and the deadline for 2016 claims is December 31st.