In the latest published Tax Briefing (Issue 03 of 2013) Revenue summarise their position on the circumstances in which expenses of travel and subsistence may be reimbursed free of tax. The Tax Briefing appears to be a by-product of the Revenue Services Contractors Project. As part of this project Revenue is examining expenses claimed by individuals providing their services through a company. As we reported in the July issue of tax.point, Revenue issued letters to taxpayers under this project in June.

The Tax Briefing summarises Revenue's position as currently stated in a number of Revenue guidance publications on expenses; Revenue Statement of Practice SP IT/02/2007 and Revenue Leaflets IT51 and IT54. The Tax Briefing looks at the key features of these publications as applied in the case of a company providing the services of the employee/director to an end –user. The meaning of “normal place of work” and travel to and from such a place is examined.

A number of examples are also included in the Tax Briefing which set out the circumstances Revenue will accept the reimbursement of travel and subsistence expenses free of tax. The examples are less than clear-cut. We will be engaging with Revenue under the TALC forum on their view as illustrated in these examples and will report any developments in tax.point.

In this issue of tax.point on page 3 Mark Doyle writes on the Revenue Service Contractors Project and highlights some of the areas that are the focus of Revenue's review under this project.

Tax Briefing Issue 03 of 2013 is re-published here.