Tax Free Subsistence Expenses

Subsistence Expenses

You may repay your employee or directors 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:

1. using the current schedule of Civil Service subsistence rates
2. use other rates not higher than Civil Service rates
3. 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:

1. your employee incurred them wholly, exclusively and necessarily when carrying out the duties  of their employment
2. the costs were repaid on the basis of vouched receipts.

The day rates that can be claimed are:

Between 5 to 10 hrs            €14.01

Over 10 hrs                          €33.61

The assignment must be outside eight kilometres of the employee’s home or normal place of work.

You can only claim both a day and overnight allowance if you work five hours or more the next day.

The overnight allowances that can be claimed are:

Normal            €147

Reduced         €132.30

Detention       €73.50

Overnight allowance covers an overnight assignment of up to 24 hours. This must be at least 100km from the employee’s home and their normal place of work.

The rate category depends on the period of an assignment:

1. normal rate is for up to 14 nights
2. reduced rate covers the next 14 nights
3. detention rate covers each of the next 28 nights.

For assignments over 56 nights, you must make an application to Revenue to confirm subsistence is still available.

The period of subsistence at any one location is limited to six months.

Subject to qualifying conditions

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie