Revenue has decided to postpone changing flat rate tax expenses for hundreds of thousands of people.

Some workers can claim back up to €1,000 a year to cover equipment needed to do their job on the flat rate expenses (FRE) regime.

Flat-rate expenses are those that cover the cost of equipment an employee needs for work which could include tools, uniforms and stationery.

The costs must be directly related to the nature of their employment.

Flat-rate expenses are available to a wide range of professions.

A plan to scrap some of the rates has been delayed until January 1st 2021, while a review is carried out.

The review relates to the tax deductibility of expenses in employment by the Tax Strategy Group (TSG).

Revenue says its decision has been taken in light of Finance Minister Paschal Donohoe supporting plans to examine policy and legislative options in relation to several aspects around the entitlement to tax relief.

It adds: "A comprehensive review of the FRE regime by Revenue has been underway for the last 18 months and is scheduled to conclude shortly"

The review has highlighted a number of inconsistencies with the regime - including the different treatment between the self-employed versus employees, ineligible registration fees claimed and the nature of expenses claimed.

On Tuesday Minister Donohoe wrote to Revenue Chairman Niall Cody, noting: "The review has raised a number of aspects in the current FRE regime where further policy consideration may be warranted".

Minister Donohoe indicated his support that the TSG would be "an appropriate forum in which the issues in question can be fully considered".

Revenue says it will make its report on the review available to the TSG "as soon as it is finalised."