Increasingly many contractors are spending time outside of Ireland during a contract.

Where a contractor employed in Ireland is obliged to travel to a foreign location to temporarily perform the duties of his/her employment there, both the outward and the return journey home may be regarded as a business journey, and associated costs may be claimed.

In addition to the cost of the journey, Irish contractors are also entitled to claim a flat rate tax free foreign subsistence payment when spending time overseas for work purposes.

FOREIGN SUBSISTENCE RATES ARE OFTEN HIGHER THAN IRISH RATES

 

We have found that many contractors are not aware that different flat rates apply for subsistence claims for time spent outside of Ireland. If you are required to travel abroad as part of the duties of your contract in Ireland, it’s important to ensure you are claiming the correct tax free foreign subsistence expenses rate.

As these rates are typically much higher than the subsistence rates applicable when you are working within Ireland, it is very worthwhile to make sure you check the rate relevant for the country you are in. This will enable you to maximise your tax free expense claims.

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DIFFERENT RATES APPLY FOR TIME SPENT AWAY

As is the case with subsistence rates payable whilst you are working in Ireland, there are different rates of payment applicable depending on how long you are outside of Ireland. A different rate applies where you are away:

  • for over 5 hours but less than 10 hours
  • for over 10 hours but not overnight
  • overnight

 

FULL LIST OF CURRENT RATES

The rates currently in force as those as last adjusted in 2010.

The full list of foreign subsistence allowances available to Irish contractors and other employees can be downloaded here: Tax Free Foreign Subsistence Rates for Irish Contractors

These foreign subsistence rates apply equally to umbrella company directors, umbrella company employees, contractors with their own private limited company and PAYE employees.

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