You can pay your employees’ expenses when they travel on business journeys. You can also pay subsistence if employees are working away from their normal place of work. You can repay your employees when they use their private cars, motorcycles or bicycles for business purposes. Below explains the types of travel that can qualify for these repayments.

Normal Place of Work

The normal place of work is where your employee works on a day to day basis. This may not always be your (the employer’s) base. Your business may have additional bases elsewhere. In this case, the normal place of work may not be the same for all of your employees. Usually, you will provide the facilities your employees need to perform their duties at the normal place of work. Your employee’s home is not usually regarded as their normal place of work. An exception to this is where there is an ‘objective requirement’ that their duties be carried out at home. Their duties have to be carried out at home because they cannot be carried out elsewhere. It is not an objective requirement if:

•Your employee merely carries out, or chooses to carry out, their duties at home

•The duties carried out are incidental (minor or administrative).

Business journeys

Business travel is when your employee travels from one place of work to another place of work as part of their duties. This includes:

•Travel between Ireland and other countries

•Travel to a place that is not their normal place of work. For business travel, the distance in kilometres is calculated by the lower of either:

◘ The distance between your employee’s home and the temporary place of work

◘ The distance between your employee’s normal place of work and the temporary place of work. Travel to and from work is your employee’s own private travel. It is not a business journey.

Reimbursement Rates

You can repay your employees when they use their private cars, motorcycles or bicycles for business purposes. This payment can be made, tax free, by the amount of business kilometres travelled. You 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 your employee. If you repay the actual costs of travel to your employee, the following conditions must apply:

◘ Your employee was necessarily obliged to pay the costs to carry out their duties

◘The costs were repaid on the basis of vouched receipts. Your employee may make a claim to Revenue for any travel expenses that were not covered by you

Subsistence Expenses

You may repay your employee expenses for their subsistence costs while they are temporarily away from their normal place of work. For absences within the State this payment can be made, tax free, by either:

•Using the current schedule of Civil Service subsistence rates

•Use other rates not higher than Civil Service rates

•Repay the actual cost of the travel to your employee. If you repay the actual costs of subsistence to your employee, the following conditions must apply:

◘Your employee incurred them wholly, exclusively and necessarily when carrying out the duties of their employment

◘The costs were repaid on the basis of vouched receipts.

If you pay subsistence expenses at rates higher than Civil Service rates, these must be approved by Revenue in advance.

Why Work with Gallagher Keane Chartered Accountants? 

Why Work with Gallagher Keane Chartered Accountants? 

Gallagher Keane provide professional accounting, tax, and financial advice. We can help you to make better informed business decisions to reach your goals effectively.

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