Reimbursement of motoring expenses incurred can be dealt with in various ways for employees that use their private cars for business purposes. Please note that round-sum motoring expenses payments are taxable in full and must be treated as pay.
Re-imbursement of Motoring Expenses by Flat-Rate Kilometric allowances
Where employees use their private cars for business purposes, re-imbursement in respect of allowable motoring expenses can be made by way of flat-rate kilometric allowances. There are two types of
kilometric 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
Please see IT 51- Employees Motoring Expenses for full details.
Expenses claims submitted to Revenue Any individual who uses his or her private car for business purposes and is not reimbursed by his or her employer can claim car expenses. Expenses must be incurred necessarily in the performance of the duties of the employment. A claim can be made under the following two headings:
- Wear and Tear (Capital Allowances)
- Running Expenses
This Revenue form (Car Expenses Claim Form) can be completed for an expenses deduction (and any wear and tear allowance in respect of the motor vehicle). However, where the employee decides to make such a claim, any reimbursement of expenses by the employer, including any scale allowances, must be treated as pay and taxed accordingly. Employees cannot claim from Revenue for any expenses that are or will be reimbursed by the employer.
- Date of purchase of car.
- Purchase price.
- Whether new/second-hand.
- Date from which car was used for business purposes.
- Mileage and percentage of business to private use.
- Running Costs – Repairs, Service, Tax and Insurance.
- Any reimbursement of running cost made by the employer.