Expenses - Flat rate Subsistence/Mileage

I

Inspiron

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I am a proprietary director working in the service industry for various clients, who are usually based in Dublin. I live in Galway.

I want to use the Civil Service Subsistence/Mileage flat rates for expenses.

Can somebody please clarify a point for me?

If I get paid PAYE and receive appropriate expenses from my company throughout the year:

In the ROS offfline Form11 there is a field for Expenses (Motor and Subsistence).

- Do I need to enter the amount of Expenses received into this field in Form11?
 
I am assuming that the correct approach should be as follows:

  • Income received from my company has PAYE/PRSI applied. Amounts as per my P60 entered into Form11
  • Authorized Expenses (mileage and subsistence at Civil Service rates) received from my company are tax free and do not need to be entered on Form11
  • Income received from other non-company sources, including directly as a Sole Trader, entered into Form11 as drawings
  • Expenses (mileage and subsistence at Civil Service rates) incurred as a result of Sole Trader work, entered into the Expenses field on Form11
When the tax on my total income is calculated by the ROS Offline application it will take into account my:
  • PAYE income and Tax/PRSI already paid
  • Untaxed income from outside my company
  • Expenses for non-company related work which are included in my untaxed income
Is this a correct assumption?
 
Sole traders cannot claim the mileage and subsistence rates, but can deduct expenses on an 'incurred' basis.

As regards the Company, the mileage can be paid tax free if within the civil service rates, but you need to be clear that the mileage itself is qualifying. Where in fact, is the office?

Also as a Director is it not Form 12 unless ALL your income is PAYE?
 
Thanks for the feedback.

My office is in Galway. Nearly all of my work is in various Dublin clients offices except for the odd day when I can work on documentation from my own office.

Form 12 states:
"This form is to be completed by a Company Director who pays all his/her Income Tax liability under the PAYE system. "

As I also have some sole-trader income, I am assuming that the correct form to use is Form 11.

Form12 is not available for ROS online/offline filing.

If all directors had to use Form12 this would force manual filing for a lot of tax payers.

I have used Form 11 for the last two years without complaint from the Revenue.
 
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