The Revenue Commissioners has updated their Tax and Duty Manual and issued a new eBrief No. 45/17 in accordance to the changes that the Department of Public Expenditure and Reform has published to the motor travel and subsistence rates for civil servants from 1st April 2017.
The motor travel and subsistence rates for civil servant are commonly used by the private sector and accepted by the Revenue Commissioners, where the actual cost of travel method has not been used.
The new motor travel expenses changed: the number of distance bands from two to four, the rates for the first band up to 1,500 km have been reduced and an increase in rates will apply from 1,501 km to 5,500 km which will be more beneficial to the employees who do significant business travel. The new rates are also more beneficial for cars with lower engine sizes and emission.
Mileage between 1 January 2017 and 31 March 2017 will not be affected by the introduction of the new bands and rates, therefore any business travel from 1 January 2017 will count towards aggregated mileage for the year. For example, an individual who had claimed 1,500km up to 1 April 2017 at the old rate will be able to move into the second band without any penalties from 1 April 2017.
In regard to changes to the Civil Service Subsistence rates, the ‘five hour’ and ‘ten hour’ rates remain the same, but a new overnight rate of €133.00 will apply from 1st April, in recognition of the increasing costs of overnight accommodation.
Also due to very high cost of hotel accommodation in Dublin, a new vouched rate for Dublin only will be allowed up to a maximum of €167 – consisting of the overnight rate plus the ’10-hour’ subsistence rate – for which a hotel receipt must be provided.
The current civil service rates are as follows:
Motor cars effective from 1 April 2017
|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|
Reduced Motor Travel Rates per kilometre
|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|
Reduced mileage rates are payable for journeys associated with an individual’s job but not solely related to the performance of those duties. Examples include:
- Attendance at confined promotion competitions
- Attendance at approved courses of education
- Attendance at courses or conferences
- Return visits home at weekends during periods of temporary transfer
Motorcycles effective from 5 March 2009
|Official Motor Travel in a calendar year||Engine Capacity: Up to 150 cc||Engine Capacity: 151 cc to 250 cc||Engine Capacity: 251 cc to 600 cc||601cc and over|
|Up to 6,437km||14.48 cent||20.10 cent||23.72 cent||28.59 cent|
|6,438km and over||9.37 cent||13.31 cent||15.29 cent||17.60 cent|
Kilometric Rates for Bicycles
|Operative Date||Rate per Kilometre|
|From February 1st 2007||8 cent|
Rates per Kilometre (1 mile = 1.609 kilometres)
Domestic Subsistence Rates effective from 1 April 2017
|Overnight Allowances||Day Allowances|
|Normal Rate||Reduced Rate||Detention Rate||10 hours or more||5 hours but less than 10 hours|
|€ 133.73||€ 120.36||€ 66.87||€ 33.61||€ 14.01|
Vouched Accommodation Domestic Subsistence Rates (for use in Dublin only)
|Vouched cost of accommodation up to €133.73||€ 33.61|
Records to be kept – Audit of Records
As regards the reimbursement of expenses based on an acceptable flat rate allowance the employer must retain a record of all of the following-
- the name and address of the employee;
- the date of the journey;
- the reason for the journey;
- the distance (km) involved;
- the starting point, destination and finishing point of the journey; and
- the basis for the reimbursement of the travel expenses (e.g. temporary absence from an individual’s normal place of work).
As regards the reimbursement of actual expenses vouched by receipts, the employer must retain such receipts, together with details of the travel and subsistence. The period of retention of records is 6 years after the end of the tax year to which the records refer.
Jarek Walerowicz – Irish Tax Team at PKF-FPM Accountants.