Income Tax (Earnings and Pensions) Act 2003 section 368

Fixed sum deductions from earnings payable out of public revenue

Section 368 allows certain employees paid from public funds to claim a standard deduction for work-related expenses, based on a fixed amount set by the Treasury.

• Employees whose earnings are paid out of public revenue may deduct a fixed sum for expenses related to their duties
• The fixed sum is set by the Treasury based on the average annual expenses that employees in similar roles are obliged to incur wholly, exclusively and necessarily in performing their duties
• The deduction applies only to expenses connected to the specific duties that give rise to the public revenue earnings
• The deduction cannot be claimed if the same expense is already deductible under the general earnings deduction rules, to prevent double deductions