Revenue today announced its decision to defer the implementation of any planned changes to flat rate expenses until 1st January 2021, pending the outcome of a review relating to the tax deductibility of expenses in employment by the Tax Strategy Group (TSG).
In its lobbying on the issue, TUI has always made clear that reduction or abolition of flat rate expenses could only be seen as a pay cut.
It beggars belief that such a move would be considered at a time when the Government still fails to ensure that large corporations pay anywhere near their fair share of taxes. Meanwhile, the take-home pay of public servants has yet to recover from its savaging under FEMPI legislation.
Clearly, a cut to flat rate expenses would have a significant and disproportionate effect on those already struggling on discriminatory salary scales and low hours.