flat rate for travel expenses

J

James F

Guest
Hello,
Any thoughts on flat rates for travel expenses ?
I live in Cork, often go to Dublin on business (self-employment). I have previously claimed a flat rate of 110 euros per day, for each trip. Although I do not usually spend that much.
I'm think of doing a job in Dublin for 6 months. Any thoughts on whether the flat rate would still be allowed ?
thanks,
James F
 
Have you already seen the Revenue information on such expenses [broken link removed], in particular [broken link removed]?

Update: Sorry - those are for employees so may not be directly relevant to your situation.
 
Hi,
Thanks for the reply, and the links (I should probably read more of them!).
It looks like this question might come down to whatever my 'normal place of work' is, or whether I have one.

I'll just have to try persuading the tax guys!

James
 
If you are self employed then you should run it by your accountant as well.
 
The Revenue do not allow self-employed individuals to pay tax-free flat rate expenses to themselves. Tax deduction can be claimed for expenses actually incurred (normally evidenced by receipts). If in doubt on this, get professional advice. Otherwise you could face potentially serious tax problems if you have underpaid tax in this way.
 
thanks for the replies.

So, no flat rate. Though it was actually accepted in my 3 previous returns. According to my accountant, they tend it accept it when the number of trips is small-ish. Maybe I've just been lucky so far.
 
Just on that last point, James F, if Revenue accept it, without question, do they have the right to question it much later on, or is there some sort of time limitation in place for them query it?
 
flat rate

>do they have the right to question it much later on...

sorry mr Stringray, I've no idea! But I'm prepared to assume that they do.
 
Re: flat rate

Income tax is a self assessment tax

That means they do not assess you, they just calculate the tax due from the return

You are always open to be checked at a later date

Stu
 
Re: flat rate

Tommys piece for self employed is correct ..i.e. Revenue allow expenses on an 'incurred basis'. As this is self assessment, you should keep your receipts.
 
Re: flat rate

I'm a director of a ltd company and work from home. However I have to occasionally go to the offices of the company with whom I contract. I pay myself for mileage from my company each time I make a trip.
Is this not correct?

Thanks
 
Re: flat rate

Your company is allowed to pay flat rate expenses to its employees including yourself. You are subject to self assessment as a company director but your are not self employed.
It is one of the few advantages of working through a limited co that you can pay yourself flat rate expenses when working at client sites.
The rates allowed for daily allowances and overnight stays are linked to the salary you pay yourself and the lenght of time you are claiming.
 
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