This GMS Flash Alert reports on the new maximum rates of motor travel and subsistence allowances in Ireland.
Ireland’s Minister for Public Expenditure and Reform recently published circulars containing revised maximum rates of motor travel and subsistence allowances.1
These apply from 1 April 2017.Where certain conditions are met, motor travel and subsistence allowances based on Civil Service rates and criteria can be paid to employees tax free.
The revised maximum rates set out in this newsletter apply from 1 April 2017. In light of this, employers might wish to review their policies and the level of motor travel and subsistence allowances that they pay. Flat-rate allowances paid in excess of these rates are taxable via employer payroll tax withholding.
|Domestic subsistence allowances from 1 April 2017|
|Overnight rates||Day rates|
|Normal rate||Reduced rate||Detention rate||10 hours or more||5 hours but less than 10 hours|
Employers are reminded that the daily subsistence allowance is not payable for an absence on business that is within 8 kilometres of the employee’s normal place of work or home. The overnight allowance will not generally be payable in respect of an absence on business that is within 100 kilometres of an employee’s home or normal place of work.
|Motor Travel Rates per Kilometre from 1 April 2017|
|Distance Bands||Engine Capacity
up to 1200cc
|Engine Capacity 1201cc to 1500cc||Engine Capacity 1501cc and over|
|Band 1||0 – 1,500 km||37.95 cent||39.86 cent||44.79 cent|
|Band 2||1,501 – 5,500 km||70.00 cent||73.21 cent||83.53 cent|
|Band 3||5,501 – 25,000 km||27.55 cent||29.03 cent||32.21 cent|
|Band 4||25,001 km and over||21.36 cent||22.23 cent||25.85 cent|
1 Department of Public Expenditure and Reform, Circular 06/2017: Domestic Subsistence Allowances, 6th March 2017; Department of Public Expenditure and Reform, Circular 05/2017: Motor Travel Rates, 6th March 2017.
For further information or assistance, please contact your local KPMG International member firm GMS or People Services professional or one of the following professionals with the KPMG International member firm in Ireland:
Tel. + 353 1 410 2759
Tel. + 353 1 410 1768
The information contained in this newsletter was submitted by the KPMG International member firm in Ireland.
© 2017 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.