REMINDER – Subsistence Rates – REMINDER
For employers who reimburse travel and subsistence expenses using the civil service flat rate model the rates have been revised since January 2025.
Employers may reimburse employees on a tax-free basis for qualifying expenses incurred while performing their duties, provided certain conditions are met. Proper compliance is essential, particularly under the Enhanced Reporting Requirements (ERR) regime.
The Motor Rates in play since September 2022 have not changed.
Enhanced Reporting Requirements (ERR)
Please remember, the reimbursement of travel and subsistence on a tax-free basis must comply with ERR obligations. Proper records and timely reporting to Revenue are essential.
Here is a summary of the key current applicable rates:
Daily Allowances:
Note: The appointment/job must be 8km away from the employee’s home and normal place of work. A day and overnight allowance can be claimed only if the employee works five hours or more on the following day.
Overnight Rates:
The overnight allowance applies to assignments of up to 24 hours and must be at least 100km from both home and normal work location.
Assignment Duration Guidance:
- Normal rate: up to 14 nights
- Reduced rate: next 14 nights
- Detention rate: following 28 nights
- For periods exceeding 56 nights, an application must be made to Revenue.
- Subsistence at any one location is capped at six months.
Vouched Accommodation (VA) Rate for Dublin
A Vouched Accommodation (VA) rate continues to apply where employees encounter difficulty sourcing suitable accommodation in Dublin within the standard overnight rate.
In such cases, the VA rate will remain the vouched cost of accommodation (up to €205.53), plus €46.17 to cover meals (10-hour rate).
Motor Travel:
The motor travel rates in effect since 1 September 2022 are unchanged.
Mileage claims made in respect of journeys carried out in electric vehicles should use the rates applicable to engine capacity 1201cc–1500cc, as set out in the motor travel table.
Please remember, proper records and timely reporting to Revenue are essential. All reimbursements of travel and subsistence on a tax-free basis must comply with ERR obligations.
As always contact your accountant, tax adviser for advice on this or any Tax matter.
MF August ’25.
