Claiming mileage (when calling on the Plant on my way home)

Purple said:

But she is going home after the visit so she is on her way home.

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I sometimes have to go to Cork. When I'm done, can I not claim mileage for the trip home? Also, the OP is not heading home until they are finished on that site. It just happens to be closer to home than their main office.

rkeane said:

I sometimes have to go to Cork. When I'm done, can I not claim mileage for the trip home? Also, the OP is not heading home until they are finished on that site. It just happens to be closer to home than their main office.

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You're not on the way home from your normal place of work on your return journey from Cork so yes, you can claim mileage.

Purple said:

You're not on the way home from your normal place of work on your return journey from Cork so yes, you can claim mileage.

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But neither is the OP

As I understand it. If he drops into the plant on the way home revenue allow him claim for the additional milage incurred. Revenue dont allow him claim for a journey or part of a journey which was not solely related to business.

His employer might allow him claim expenses for his journey to and from work but any payments are taxable in the normal way through PAYE.

If, however, he drove from his base to the remote plant and then returned to base. Revenue allow him claim for the entire round trip. This now becomes an issue for his employer.

At the end of the day Revenue determine what expences can be paid tax free and which cannot.

aj

IMO if the OP travelled to the plant and back during working hours they would be entitled to claim mileage.

As the OP is travelling from their place of work to the plant and then on home I'd be inclined to argue that mileage should be claimed from the place of work to the plant only.

A quick call to Revenue should clarify the matter.

The revenue phone numbers are included in the [broken link removed] circular referred to above.

There are two similar and overlapping issues here.

1)Claiming tax free expenses for journeys not solely associated with business.

Strict interpretaion of the revenue rules would dictate that only the miles done solely on business can be claimed.

Recently I had a business meeting with a client in Kilkenny on the Friday afternoon of a long weekend. I took the family with me and we made a weekend of it. I confirmed with the HR Manager that I was not entitled to claim expenses as the trip was not solely undertaken for the purposes of business.

2)Claiming tax free expenses for journeys to and from home to work (base or remote site).

Long standing practice would dictate that these journeys never attract tax free expenses. Many companies pay employees 'call out' miles but these are taxed fully in the normal way through PAYE. Some companies may even 'gross up' these payments so as the employee is not out of pocket.

aj

IT51
Payments by an employer which are no more than re-imbursement 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 allowable for tax purposes and any re-imbursement of these expenses must be treated as pay.

Where an employee’s allowable expenses are re-imbursed free of tax by an employer, the question of an income tax claim by the employee in respect of those expenses does not of course arise.

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ajapale said:

As a rule employees cannot claim mileage expences incurred (wholly or partially) travelling to and from work.

The relevant circular is [broken link removed]

the business Kilometres should be calculated by reference to the lesser of -

* The distance between home and the temporary place of work or

* The distance between the normal place of work and the temporary place of work.

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This policy discriminates against those who don't normally drive to work. For instance, I had to attend a training course in Drogheda recently. My milage claim could only cover the distance from my normal office to Drogheda, which is about 15 miles shorter than the distance from my home. Presumably, the logic for this is that I would normally have been driving from home to work, but this is not the case. I would normally have cycled to work, and I only took the car as cycling to Drogheda for a 9am start would be a bit OTT.

So non-car-users are treated unfairly.