Changes to Subsistence Rates from 1 July 2015

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The rates of subsistence allowances and standard distance requirements have recently been revised by Revenue. Both the rates and the minimum distance between the temporary workplace and the normal place of work or home have been increased.

Businesses should note the increased distance criteria as these changes will affect your employee’s subsistence allowances from 1 July 2015.

Note that there are detailed rules governing the payment of subsistence allowances and if applicable these expenses can be paid to employee’s tax free as an alternative to reimbursing receipted expenditure.

The rates effective from 1 July 2015 are outlined below:

Domestic subsistence rates from 1st July 2015

Overnight Allowances			Day Allowances
Normal Rate	Reduced Rate	Detention Rate	10 hours or more	5 hours but less than 10 hours
€125.00	€112.50	€62.50	€33.61	€14.01

Day subsistence allowance
From 1 July 2015, a day allowance is not payable for an absence on business that is within 8km of an employee’s normal place of work or home which has been changed from 5km.
 
Overnight subsistence allowance
From 1 July 2015, an overnight allowance will not generally be payable in respect of an absence on business that is within 100km of an employee’s home or normal place of work. The new rules allow for an overnight allowance in “exceptional circumstances” where the distance is in excess of 50km.

Contact Deirdre McDermott Audit Director OSK for further information on Subsistence Rates and for information on our tax and accounting services or call  01 439 4360.

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