As we are now at the mid-point of the calendar year, it is worth revieiwng the rate that you are claiming for any mileage costs you are incurring for business journeys which you make in your own car when you operate through a limited company or umbrella company.
As a reminder, if you are using what is known as the Civil Service Rates, the rate for mileage claims should reduce after you have travelled a cumulative total of 6,437km in the calendar year.
MILEAGE RATES UP TO 6,437KM PER YEAR
The applicable rates for journeys up to a cumulative total of 6,437km in the year are:
Engine size Rate per km
Up to 1,200 cc 39.12 cent
1,201 to 1,500 cc 46.25 cent
1,501 cc and over 59.07 cent
MILEAGE RATES FOR TRAVEL EXCEEDING 6,437KM PER YEAR
Once you exceed more than a cumulative total of 6,437km travelled in a calendar year, subsequent mileage claims must be made at the reduced rate of:
Engine size Rate per km
Up to 1,200 cc 21.22 cent
1,201 to 1,500 cc 23.62 cent
1,501 cc and over 28.46 cent
At the start of the next calendar year, you can revert to claiming the higher mileage rates once again.
NORMAL PLACE OF WORK RULES
It is important to be aware that you are not entitled to claim for mileage to and from your home and your normal place of work. Only mileage relating to business journeysaway from your normal place of work are allowable. In addition subsistence can only be claimed for time spent away from your normal place of work. It is important to ensure you understand where your normal place of work is, in order that you claim your mileage and subsistence correctly.
REVENUE GUIDELINES
If you need to recap on the rules surrounding mileage and subsistence claims and normal place of work rules, take a look through Revenue’s Leaflet IT51 and IT 54.
For contractors, there is an additional important Revenue document now available, known as Tax Briefing 03/13, which is essential reading for contractors trying to understand Revenue’s opinon on where their own normal place of work is.
Revenue Guide to Mileage Expenseshttp://www.revenue.ie/en/tax/it/leaflets/it51.html
Revenue Guide to Subsistence Expenses http://www.revenue.ie/en/tax/it/leaflets/it54.html
Tax Briefing 03/13 http://www.revenue.ie/en/practitioner/tax-briefing/2013/no-032013.html
