Revenue have in recent days updated their guides to tax-free Travel & Subsistence expenses for employees and company directors, to take into account the new Civil Service mileage and subsistence rates.
The new rates apply from 1 April 2017.
There are now fifteen separate motor expense rates for cars,
The rate that applies to you depends on your annual distance travelled, the engine size of your car, and the purpose of each journey.
These are as follows:
|Band||Distance||Engine Capacity: Up to 1,200 cc||Engine Capacity: 1,201 cc to 1,500 cc||Engine Capacity: 1,501 cc and over|
|Band 1||0 – 1,500 km||37.95 cent||39.86 cent||44.79 cent|
|Band 2||1,501 – 5,500 km||70.00 cent||73.21 cent||83.53 cent|
|Band 3||5,501 – 25,000 km||27.55 cent||29.03 cent||32.21 cent|
|Band 4||25,001 km and over||21.36 cent||22.23 cent||25.85 cent|
A new set of “reduced mileage rates” has been introduced. These are payable “for journeys associated with an individual’s job but not solely related to the performance of those duties”.
|Engine Capacity: Up to 1,200 cc||Engine Capacity: 1,201 cc to 1,500 cc||Engine Capacity: 1,501 cc and over|
|16.59 cent||17.63 cent||18.97 cent|
This is intended to include:
- Attendance at “confined promotion competitions”
- Attendance at courses and conferences
- Return visits home at weekends “during periods of temporary transfer”.
Separate sets of rates apply also to motorbike and bicycle use – the latter, a frankly laughable 8 cent per km – why do they bother?
The new Subsistence rates are as follows:
|Overnight Allowances||Day Allowances|
|Normal Rate||Reduced Rate||Detention Rate||10 hours or more||5 hours but less than 10 hours|
A new system of “Vouched Accommodation Domestic Subsistence Rates”, for use in Dublin only, has also been introduced, up to the following maximum amounts:
|Vouched cost of accommodation up to €133.73||€33.61|
The payment of tax-free motor and subsistence expenses are each subject to detailed terms and conditions.
If you are paying or administering such expenses, you must study these carefully, as expense claims often give rise to Revenue audit problems, and the penalties for non-compliance can be severe.
If you’re in any doubt, consider getting professional advice.