Some employees use their private cars for business purposes. Re-imbursement of motoring expenses incurred can be dealt with in various ways. Employers are reminded that round-sum motoring expenses payments are taxable in full and must be treated as pay. '.
Where employees use their private cars for business purposes, re-imbursement in respect of allowable motoring expenses can be made by way of flat-rate kilometric allowances. There are two types of kilometric allowance schemes which are acceptable for tax purposes, if an employee bears all the motoring expenses:
Please see IT 51- Employees Motoring Expenses for full details.
Please see IT 54 - Employees Subsistence Expenses for full details regarding subsistence rates for absences within the State, absences outside the state and the rules, etc. in relation to the application of these rates.
Employers are reminded that round-sum subsistence expenses payments are taxable in full and must be treated as pay. '.
Payments by an employer which do no more than re-imburse an employee for allowable subsistence expenses which were actually incurred, may be made tax-free in certain circumstances, in accordance with legislation. The expenses concerned must have been incurred "wholly, exclusively and necessarily" in the performance of the duties of the employment.