# Minimum rate per mile (Travel allowance)



## djsim (23 Apr 2008)

Hey Guys, 

I have a quick question. I am based in Limerick and I have to travel to Cork once, maybe twice a month with work. I searched around the web and ABM but could not find a definate answer on this.

Presently, I get €60 euro for the round trip which I beleive is well below what I should be getting. Can anyone pls tell me how much should I get per mile\KM.

If I am getting below, I can demand more or is it up to my employeer?

P.S. The company that I work for give the absoulte min across the board.

Thanks,
James.


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## mathepac (23 Apr 2008)

djsim said:


> ...Presently, I get €60 euro for the round trip which I beleive is well below what I should be getting. Can anyone pls tell me how much should I get per mile\KM...


As in all such cases the answer is that "it depends". What you "should get" is whatever is agreed between yourself and your employers.

AFAIK, there is no such thing as a minimum rate, but there are maximum rates that the Revenue agree as free of tax based on the engine capacity of the car, whether the car is privately owned or a company-supplied vehicle and the number of miles travelled per annum, provided the rates and payments are agreed with Revenue in advance.


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## Purple (23 Apr 2008)

We pay €0.35 per km. That's the most Revenue let us give.


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## Staples (23 Apr 2008)

Purple said:


> We pay €0.35 per km. That's the most Revenue let us give.


 
........without incurring a tax liability perhaps but you're not actually precluded from paying any greater amount.

For a more comprehensive explanation, try the following.

[broken link removed]


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## Purple (23 Apr 2008)

Staples said:


> ........without incurring a tax liability perhaps but you're not actually precluded from paying any greater amount.
> 
> For a more comprehensive explanation, try the following.
> 
> [broken link removed]


Spot on.


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## djsim (23 Apr 2008)

thanks for the replies 

192@ .35 is €67.20, not worth causing the hassle between us for €7.20.


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## csirl (23 Apr 2008)

Your employer can also demand that you travel on public transport if it is cheaper


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## djsim (23 Apr 2008)

Limerick To Cork via Irishrail would take me about 3 times longer


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## Purple (23 Apr 2008)

djsim said:


> thanks for the replies
> 
> 192@ .35 is €67.20, not worth causing the hassle between us for €7.20.



While you are getting a little under paid I think you have the right attitude. I hope your employer thinks the same way.


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## shipibo (24 Apr 2008)

Djism,

      One thing not clarified. Do you have Company car or is it your car ??

       Rates above are for company cars.

       Loosely, if your own car

AA Rates = € 1.44 , less than 16K km = 1.26/ Km

Do a bit more checking on web, maybe ring AA.


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## Purple (24 Apr 2008)

crumdub12 said:


> Djism,
> 
> One thing not clarified. Do you have Company car or is it your car ??
> 
> ...


I think you are incorrect there. If you have a coompany car you don't get paid for each Km you drive since the costs are incurred by the company.


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## Murt10 (24 Apr 2008)

I'm not sure how far it is from Limerick to Cork or how long the journey takes but if you are away from base for more than 5 hours you may also be entitled to Subsistence Allowance of E16.32. If you are away for 10 hours it's even better E40.01. This is to cover the cost of lunch or meals etc and is in addition to your mileage allowance. 


http://www.finance.gov.ie/viewdoc.asp?DocID=3333&CatID=28&StartDate=01+January+2005


[broken link removed]


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## djsim (24 Apr 2008)

This is great, thanks for all your replies.

Just to confirm that it is my own car I use and I am away for the day, approx 8-9 hrs. Limerick to Cork 120miles. (60X2)

If I was to apporach my boss about a Subsistence Allowance, he would laugh. Lets just say that it is a family business and the perks are VERY basic.

So it seems I am getting well below the national average cos I am getting only €60 for the journey and no Subsistence Allowance.


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## shipibo (24 Apr 2008)

Purple said:


> I think you are incorrect there. If you have a coompany car you don't get paid for each Km you drive since the costs are incurred by the company.



Will get some more info to prove / disprove my statement, until then , civil service rates 2007

*Motor Travel Rates Update July 2007*

Motor Travel Rates 1st July 2007-This covers reimbursement of Motoring Expenses to Employees (including Directors)

INTRODUCTION 

Payments by an employer which are no more than reimbursement of allowable expenses actually incurred by an employee may be paid free of tax in certain circumstances, in accordance with legislation. The law provides that employees’ expenses qualify for deduction by them only where they are incurred “Wholly exclusively and necessarily” in performing the duties of the employment. Expenses which are incurred by employees in travelling to and from the place of employment are not allowance for tax purposes and any reimbursement of these expenses must be treated as pay.

Where an employee’s allowable expenses are reimbursed free of tax by an employer, the question of an income tax claim by the employee for those expenses does not of course arise.

REIMBURSEMENT OF FLAT-RATE TRAVEL ALLOWANCES

Where employees use their private cars for business purposes, reimbursement in respect of allowable motoring expenses can be effected by way of flat-rate mileage allowances.

Mileage allowances are a formula which attempt to arrive at likely allowance motoring expenses through a standard costs system. The system applies where the car is owned by the employee and all motoring expenses are met by the employee. If any specific motoring expenses (including finance costs and exceptional expenditures) are reimbursed by the employer, the tax office should be approached as to the appropriate tax treatment.



There are two types of mileage allowance schemes which are acceptable for tax purposes, if an employee bears all the motoring expenses:

    The prevailing schedule of Civil Service rates; or 
    Any other schedule with rates not greater than the Civil Service rates; or

Either of these two reimbursement rates may be applied without specific Revenue approval where a satisfactory recording and internal control system is in operation.

CIVIL SERVICE RATES

Following a general review of the Civil Service Motor Mileage Rates changes to the schedule were announced in November 2001. The changes bring into effect a simplified mileage rate structure involving a reduction in the mileage bands from six to two bands and streamlining the categories of car engine capacities. In addition, all Civil Service employees have a mileage year based on the calendar year. 

The new rates and car engine capacities, details of which are shown below, apply with effect from 01 July 2006. Please note the new rates are referred in kilometres.

Motor Travel Rates Update July 2007 

For individuals who are obliged to use their car in the normal course of their duties:
Motor Cars effective from the 1st of July 2007

                   Official Motor Travel in Calendar Year  
Engine Capacity up to 1200cc         Engine Capacity 1201cc to 1500cc         Engine Capacity 1501 cc and over                   Up to 6437km         52.16cent         61.66cent          78.32 cent                    6438 and over         27.08 cent         30.96 cent         36.65cent              
[broken link removed]


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## galwegian44 (25 Apr 2008)

Djsim,

I work for a large US multinational and the rate per KM increased from 0.38 to 0.60 last year....hopefully this will provide a reference point.

All the best.



djsim said:


> Hey Guys,
> 
> I have a quick question. I am based in Limerick and I have to travel to Cork once, maybe twice a month with work. I searched around the web and ABM but could not find a definate answer on this.
> 
> ...


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## Complainer (25 Apr 2008)

Purple said:


> I think you are incorrect there. If you have a coompany car you don't get paid for each Km you drive since the costs are incurred by the company.


It depends. I've seen cases where while the company car is provided, the driver pays some of the costs (petrol/insurance/tax) himself, and so gets some mileage rate (usually significantly lower than the rate for private cars) for travelling on company business.


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## goose2011 (30 May 2011)

*travel allowance*

hi just wondering is they're any government allowance that i can get if i travel more than 40 miles to work.or is that a dream i had.


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## Complainer (30 May 2011)

goose2011 said:


> hi just wondering is they're any government allowance that i can get if i travel more than 40 miles to work.or is that a dream i had.



Nope, you're dreaming!


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