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In a country that boasts iconic road trips such as the Copper Coast and the Wild Atlantic Way, it\u2019s incredibly important to have a thorough understanding of civil service rates for mileage allowance.\u00a0<\/p>\n
However, it can be more complicated than you might think. In this guide, we\u2019ll tell you everything you need to know about the car mileage allowance in the land of shamrocks, Guinness, and stunning coastline.<\/p>\n
Let\u2019s get started.<\/p>\n
How does mileage allowance work?<\/p>\n<\/h2>\n
If you\u2019re frequently driving a private car for business purposes, you might already know and understand what car mileage allowance is. In case you don\u2019t, it\u2019s the amount employees can claim to cover the cost of fuel, insurance, road tax, and the general wear and tear<\/strong> of their personal vehicle on account of business trips and purposes. This does not<\/em> include personal journeys or daily commutes.<\/p>\n The \u2018approved mileage allowance payment\u2019 (AMAP) is the maximum amount that an employee can claim per mile\u2013or kilometre in Ireland\u2013tax-free. The amount paid will be tax deductible for the business as long as it doesn\u2019t exceed the AMAP established in the country.<\/p>\n To sum up, car mileage allowance benefits workers who might otherwise end up spending their own money on travel expenses. It also helps businesses pay less corporation tax: a win-win situation.\u00a0<\/p>\n However, to benefit from this arrangement, both employees and employers must fully understand the rates and procedures since they vary from country to country. Here we\u2019ll explain civil service mileage allowance rates in Ireland for 2023, so that you and your business can claim and pay in a stress-free and compliant manner.<\/p>\n What are the mileage allowance rates in Ireland for 2023?<\/p>\n<\/h2>\n Below you\u2019ll find tables that show the civil service rates for mileage allowance in Ireland<\/a> for 2023 for cars, motorcycles, and bicycles. These tables show you the new rates for the year starting from 1st September 2022, the distance bands, and the mileage allowance rate in euros per kilometre depending on the engine capacity of the vehicles.<\/p>\n For electric vehicles: <\/strong>mileage claims of these vehicles will abide by the rate applicable to engine capacity 1201cc-1500cc.<\/p>\n Reduce mileage rates: <\/strong>these reduced rates apply to journeys that are associated with work but are not solely related to the performance of one\u2019s job. For example, travel to confirmed promotion competitions or attendance at approved courses or conferences.<\/p>\n For bicycles, the flat rate per kilometre stands at 8 cents.<\/p>\n It\u2019s crucial for all businesses to clearly state the policies and procedures that employees will need to follow in order to claim mileage allowance. Further information will also be needed for subsistence expenses like detention rates, and day and overnight allowances for subsistence costs.<\/p>\n What\u2019s not included in the mileage allowance?<\/p>\n<\/h2>\n It\u2019s important to remember that not all journeys will be covered by the civil service mileage allowance in Ireland. The most common trips which aren\u2019t <\/em>included are:<\/p>\n A normal place of work is understood to be the location where an employee performs their job on a day-to-day basis. For example, if an employee lives in Dublin and has to go to the Dublin office to complete their job, these commuting trips will not be included in the mileage allowance. However, if they need to travel to the offices in Cork to complete a task, this will not be their ‘normal place of work\u2019 and so they can claim mileage allowance for this journey.<\/p>\n How to file a mileage allowance claim in Ireland?<\/p>\n<\/h2>\n In order to receive a reimbursement on the employee expenses for business journeys, employees will need to fill out a claim form provided by the company or Revenue<\/a> as well as provide evidence of the journeys made in their personal car.<\/p>\n Important evidence to keep:<\/strong><\/p>\n Businesses must keep reliable records of the employee\u2019s claims<\/strong> and full evidence for these to comply and avoid any problem with Revenue. If an employee chooses to claim for the full costs of the travel they must fill out a form provided by the Irish Revenue.<\/p>\n It\u2019s important to note that if an employer has already paid employee expenses at civil service mileage rates there will be no additional tax relief due to the employee.<\/p>\n One of the simplest ways to manage travel expenses at your organization is to connect your expense management solution to a dedicated business travel management platform like TravelPerk. This enables you to keep track of all expenses in a single location, have granular control over your budget, and provide a great travel experience to all employees.<\/p>\n\n
Civil service motoring and bicycle rates<\/strong><\/h3>\n
Cars (rate per kilometre)<\/strong><\/h4>\n
Motor travel rates (from 1 September 2022)<\/em><\/strong><\/h5>\n
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\n Distance band<\/strong><\/td>\n Engine capacity up to 1200cc<\/strong><\/td>\n Engine capacity 1201cc – 1500cc<\/strong><\/td>\n Engine capacity 1501cc and over<\/strong><\/td>\n<\/tr>\n \n Up to 1,500 km(Band 1)<\/td>\n 41.80 cent<\/td>\n 43.40 cent<\/td>\n 51.82 cent<\/td>\n<\/tr>\n \n 1,501 – 5,500 km(Band 2)<\/td>\n 72.64 cent<\/td>\n 79.18 cent<\/td>\n 90.63 cent<\/td>\n<\/tr>\n \n 5,501 – 25,000 km(Band 3)<\/td>\n 31.78 cent<\/td>\n 31.79 cent<\/td>\n 39.22 cent<\/td>\n<\/tr>\n \n 25,001 km and over(Band 4)<\/td>\n 20.56 cent<\/td>\n 23.85 cent<\/td>\n 25.87 cent<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n Reduced motor travel rates per kilometre<\/strong><\/h5>\n
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\n Engine Capacity up to 1200cc<\/strong><\/td>\n Engine Capacity 1201cc to 1500cc<\/strong><\/td>\n Engine Capacity 1501cc and over<\/strong><\/td>\n<\/tr>\n \n 21.23 cent<\/td>\n 23.80 cent<\/td>\n 25.96 cent<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n Motorcycles (rate per kilometre)<\/strong><\/h4>\n
Motorcycle rates (from 5th March 2009)<\/em><\/strong><\/h5>\n
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\n Distance<\/strong><\/td>\n Engine capacity up to 150cc<\/strong><\/td>\n Engine capacity 151cc – 250 cc<\/strong><\/td>\n Engine capacity 251 cc – 600 cc<\/strong><\/td>\n Engine capacity 601cc and over<\/strong><\/td>\n<\/tr>\n \n Up to 6,437 km<\/td>\n 14.48 cent<\/td>\n 20.10 cent<\/td>\n 23.72 cent<\/td>\n 28.59 cent<\/td>\n<\/tr>\n \n 6,438 km and over<\/td>\n 9.37 cent<\/td>\n 13.31 cent<\/td>\n 15.29 cent<\/td>\n 17.60 cent<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n Bicycles (rate per kilometre)<\/strong><\/h4>\n
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Streamline travel expenses with TravelPerk’s business travel management platform<\/h2>\n