Tax Tip: Employee Expenses

If your employees or directors travel for business purposes then they are entitled to be reimbursed for travel and subsistence costs incurred.

Under Revenue rules you can repay your employees when they use their private cars for business purposes. This payment can be made tax free and is calculated based on civil service rates by the number of business kilometres travelled.

Current Revenue practice also allows an employer to repay employee expenses for their subsistence costs while he/she is temporarily away from his/her normal place of work. Provided the payments are in line with the civil service subsistence rates they can be paid tax free.

Before you repay any money however, make sure that the employee concerned submits properly documented expense claims using the civil service claim forms as a model.

To find out more about reimbursable tax-expenses for employees, please arrange a consultation with one of our advisors.

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Joe McAvoy

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Dara Burke

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Shane Carroll

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