Travel and subsistence

Reimbursement rates

Use of private vehicles

An employer can repay employees for expenses incurred when they use their private cars, motorcycles or bicycles for business purposes. It is a condition that the employee must be necessarily obliged to incur the expense to carry out their duties. This payment can be made, tax free, and is based on the amount of business kilometres travelled. The employer can either:

• use the current schedule of Civil Service rates
• use other rates not higher than Civil Service rates
• repay the actual cost of the travel to their employee.

If the employer repays the actual costs of travel to the employee, the repayment should be based on vouched receipts.

An employee may make a claim to Revenue for any travel expenses that were not covered by the employer. They should use the Car expenses and capital allowances claim form.

Subsistence expenses

The employer may repay an employee's expenses for their subsistence costs while they are temporarily away from their normal place of work. It is a condition that the subsistence must attach to travelling necessarily incurred when carrying out the duties of the employment. For absences within the State, this payment can be made, tax free, by either:

• using the current schedule of Civil Service subsistence rates
• using other rates not higher than Civil Service rates
• repaying the actual cost of the travel to your employee.

If the employer repays the actual costs of subsistence to the employee, the repayment should be based on vouched receipts.

If the employer pays subsistence expenses at rates higher than Civil Service rates, these must be approved by Revenue in advance.

Note

An employee may decide to personally claim expenses and allowances reflecting the actual costs incurred by them. Where this happens, and the employer has reimbursed their expenses, the amounts paid by the employer will be treated as taxable salary.

Next: Civil service rates