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

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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 –

• Firstly, the office holder or employee must be temporarily away from her/his normal place of work in the performance of the duties of her/his office or employment;
• Secondly, the travel expenses must be necessarily incurred in the performance of the duties of the office or employment and
• Thirdly, arising from a long-accepted position supported by tax case law, the expenses of subsistence must attach to travelling necessarily incurred in the performance of the duties of the office or employment.

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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