Are you aware of changes to the allowable subsistence rates from 1 July 2019?


Are you aware of changes to the allowable subsistence rates from 1 July 2019?

Where office holders and employees necessarily incur expenses of travel (and subsistence relating to that travel) in the performance of the duties of their office or employment, the reimbursement of such expenses may, within certain limits, be made tax-free.

The conditions under which the reimbursement to office holders and employees of the expenses of travel and subsistence may be made without deduction of tax are as follows –

The employer may reimburse the expenses of travel and subsistence by way of vouched receipts from the employee, or by way of ‘flat rate’ allowances.

The agreed ‘flat rates’ have recently changed and are contained in Tax and Duty Manual Part 05-01-06.  Click here for the new subsistence rates that apply from 1 July 2019 and the full detailed document. 

The following is a summary of some of the rates:

Some Domestic subsistence rates effective from 1 July 2019

Standard domestic subsistence rates – effective from 1 July 2019

Overnight rates Remain

Normal rate

Reduced rate

Detention rate

€147.00

€132.30

€73.50

 

Day rates

10 hours or more

5 hours or more but less than 10 hours

€36.97

€15.41

 

 

 

 

 

 

Vouched accommodation (“VA”) domestic subsistence rates (for use in Dublin only) - effective from 1 July 2019

Vouched accommodation ("VA") rate

Accommodation

 

Meals

VA Rate

Vouched Cost of Accommodation up to €147

Plus

€36.97

Standard motor travel rates effective from 1 April 2017

Motor travel rates per kilometre

Distance Bands

Engine capacity

Up to 1200cc

1201cc to 1500cc

1501cc 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

Where the amounts reimbursed by employers are in excess of the amounts referred to above, the excess is subject to tax, USC and PRSI in the normal way.

If you would like to discuss this topic further, please contact OSK Tax Advisers on 01-439 4200 or email advice@osk.ie

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