Mileage and petrol from employer question

Cianos

Hi,
Just a quick question. A friend is waiting on some expenses to come through. Her boss said that they will give her 40cent per mile for mileage, or pay for her petrol. Is this the normal way of doing things? Should she be entitled to petrol and mileage? And is 40cent per mile ok?

This is in relation to merchandising trips that she was sent on, not commuting to and from work.

Thanks:)

Occidental

Not the greatest of rates, but I'm sure not the worst either. Mileage would be expected to cover petrol and wear and tear on the car. Why he's giving her the option of petrol only, I find baffling as unless she's driving a tank shes not going to be above 40c a mile.

BoozyBabe

Yes, the amount a company pays you per mile, is for petrol used & wear & tear on the car.

I get 59c per mile, so 40c does seem a little low.

Wishbone Ash

Wife gets 75c AFAIK.

Big Nelly

I get 1.24 per mile:D

Wishbone Ash

Big Nelly wrote:

I get 1.24 per mile:D

€1.24 or 1.24c ?

NeMiSiS

I get 650 euro a month. So I could drive more.. I could drive less... Ii dunno how much sense it makes

TK

Henry Ford III

You can be reimbursed up to the civil service mileage rates, without tax.

These are quite high iirc. I googled this......


You are here : Home > Services > Revenue Subsistence and Motor Travel Rates July 2005

Subsistenence Allowance Rate Update July 2005

Domestic Subsistence rates from 1st July 2005

Please read Notes on Schedule featured below:

Overnight rates

Class of allowance Normal Rate Reduced Rate Detention Rate
A Class €138.41 €127.60 €69.19
B Class €127.49 €109.04 €63.77


Day Rates


Class of allowance 10 hours or more 5 hours but less than 10 hours
A Class €40.01 €16.32
B Class €40.01 €16.32


Notes on Schedule:
There are detailed rules and conditions governing the payment
of subsistence allowances in the Civil Service. The following
notes are indicative of some of the relevant provisions
(i) Class of Allowances
The rate of allowance depends on the grade of officer. The
approximate grade levels, and present minimum annual
salaries, are broadly as follows:
Class A:
Assistant Principals, higher grades and equivalents. All grades
with the same salary scales as Engineer Grade 11 (Civil).
Full PRSI - £50,698.00 Modified PRSI - £48,166.00
Class B:
Higher Executive and Executive Officers, Administrative
Officer, Staff Officer, whose pay is above the maximum of the
Clerical Officer, Clerical Officers on and above the CO
standard scale maximum, and equivalents.
Full PRSI - £28,285.73 Modified PRSI - £26,873.22
(ii) Overnight Allowance
Overnight Allowance (over 24 hours absence)
An overnight allowance covers a period of 24 hours from the
time of departure, as well as any further period not exceeding
5 hours, which is necessarily spent away from the normal place
of work.
Where an absence exceeds 24 hours, a day allowance at the
appropriate rate may be paid only if the last period of 24 hours
is exceeded by 5 or more hours.
Normal Rate
This is payable for absences up to 14 nights.
Reduced Rate
This is payable for each of the next 14 nights.
Detention Rates
This is payable for each of the next 28 nights.
Absences Over 56 Nights
Employers should make application to the appropriate
Revenue Office with a view to agreeing the rate to be applied.
The period of subsistence at any one location is limited to six
months. Any departure from this position e.g. for continuation
of the subsistence period for a short duration, is considered on
the circumstances of the individual case.
Continuous Absence
Certain absences from a particular temporary location would
not be regarded as breaking the continuity of stay for the
purpose of reducing the subsistence allowance. These
absences would include absences of not more than two nights
due to a return on official business to the employee’s normal
place of work, plus any nights of a weekend or public holidays
or return visits home or annual leave. These absences would
not, of course, qualify for subsistence allowance.
5 kilometres of the employee’s home or normal place of work.
There are two categories of day allowance, namely, 5 to 10
hours absence and over 10 hours absence.
Appendix 11
Schedule based on current Civil Service Subsistence
Rates for absences outside the State
Details of quantum of Civil Service subsistence rates for certain
foreign countries are available from any Regional Revenue
Office.
The Civil Service schedule of rates may be applied in the
following manner in respect of temporary (up to six months)
absence:
Period of Assignment Abroad % of Subsistence Rate for
relevant location
First month 100%
Second and Third month 75%
Fourth, Fifth and Sixth month 50%
The rates may be used only in respect of the reimbursement of
allowable subsistence expenses where the employee is
working abroad on a foreign assignment. “Working abroad on
foreign assignment” means that the employee is actually
performing the duties of the employment abroad for a
temporary period. Where actual vouched expenses exceed the
flat rate allowances such vouched expenses may be used
instead of flat rate allowances.
Long term Absences
For long term absences (where assignment period is greater
than six months), reimbursement of allowable subsistence
expenses may be in the following manner:
Period of Assignment Abroad Allowable Subsistence
First month of assignment
(to facilitate the employee obtaining
self catering accommodation)
Up to the Overnight Rate
Remainder of Assignment Up to the cost of reasonable
accommodation plus 50% of the
day rate (10 hours) for the location
Any departure from the above is only considered having regard
to the particular circumstances of the individual case. The
position as outlined is, of course, only relevant to the extent to
which the employee remains within the charge to Irish Tax.


Motor Travel Rates Update July 2005

Motor Travel Rates 1st July 2005

Rates per Mile


Official Motor Travel in Calendar Year Engine Capacity up to 1200cc Engine Capacity 1201cc to 1500cc Engine Capacity 1501 cc and over
Up to 4000 miles 83.92 cent 97.91 cent 124.23 cent
4001 and over 42.47 cent 48.77 cent 57.39 cent


Reduced Motor Travel Rates Effective from 01 July

Engine Capacity up to 1200cc Engine Capacity 1201cc to 1500cc Engine capacity 1501cc and over
31.40 cent per mile 35.21 cent per mile 40.98 cent per mile

Jood

Tis a bit low, I get 75c and we are trying to get that increased.

Wishbone Ash

Wishbone Ash wrote:

Wife gets 75c AFAIK.

I'm wrong - she tells me it's 99c.

Stephen

That's pretty good. I get 65 cents per mile.

unkel

Henry Ford III wrote:

You can be reimbursed up to the civil service mileage rates, without tax

Indeed. The highest possible rate is €1.24 per mile but this is limited to 4000 miles per annum and only on a car over 1.5l for anyone not bothered to read through your post

A lot of companies do a "flat rate" as in one untaxed rate per mile for any car for any mileage with the approval of the Revenue

Mine's only €0.60 atm unfortunately

BTW, mileage does NOT include travelling to and from the office(s). When travelling to a customers' site, mileage is only considered as the smallest distance from your home or from your office to the customers' site. Example you live in Dublin, your office is in Mullingar and you drive from Dublin to a client in Longford, the only mileage you can claim is from Mullingar to Longford. Not from Dublin to Longford

Lex Luthor

sounds a bit low...I get 18c/mile plus €12k on top of my salary annually. I do about 8000 miles/year for business. I don't have a calculator to work out the per mile rate

unkel

Lex Luthor wrote:

I get 18c/mile plus €12k on top of my salary annually. I do about 8000 miles/year for business

That is taxable salary! Your employer can give you as much of that as he wants. Mileage expenses exempt from tax are limited by above rates

Lex Luthor wrote:

I don't have a calculator

What operating system does the PC you're posting from have? Any Microsoft operating system has a built-in calculator (accessories -> calculator)

Lex Luthor

unkel wrote:

That is taxable salary! Your employer can give you as much of that as he wants. Mileage expenses exempt from tax are limited by above rates



What operating system does the PC you're posting from have? Any Microsoft operating system has a built-in calculator (accessories -> calculator)

Ok, I couldn't be arsed...anyway I worked it out roughly to about 86c/mile.
The more miles I do obviously that number decreases, but thtas at 8000miles.
and yes its taxable....

unkel

Lex Luthor wrote:

anyway I worked it out roughly to about 86c/mile

€12k for 8k miles + €0.18 per mile is €1,68 per mile. Without a calculator

Cianos

Thanks very much for everyones input. Do you think it would be fair for her to ask for an increase considering no one on the board seems to have a lower rate than her!?

unkel

Cianos wrote:

Do you think it would be fair for her to ask for an increase considering no one on the board seems to have a lower rate than her!?

Why not? Give it a go

BTW as a side note, does she have the appropriate insurance on her car? If traveling to customers sites with samples, she'll need more than the limited business use option that people have that drive to customers sites but don't carry goods / samples

Big Nelly

unkel wrote:

Why not? Give it a go

BTW as a side note, does she have the appropriate insurance on her car? If traveling to customers sites with samples, she'll need more than the limited business use option that people have that drive to customers sites but don't carry goods / samples

I didnt even bother telling FBD that I need to drive for work, was talking to one in office and she asked me would I be doing major milage, said I prob wouldnt and if going to Cork etc would hop on train so she said not to bother, its only if you are doing over 20k a year on the road

unkel

Big Nelly wrote:

I didnt even bother telling FBD that I need to drive for work

Well, you know how insurance companies operate. They do anything to avoid paying a claim. What if you crash in the carpark of your customer? They'd add up 2 + 2. Limited business use is only something like €50 per annum iirc, so a bit of a risk you're taking there, although I agree it's probably highly unlikely anyone will ever find out provided you don't carry samples / goods

Lex Luthor

unkel wrote:

€12k for 8k miles + €0.18 per mile is €1,68 per mile. Without a calculator

that €12k is taxable income

Big Nelly

unkel wrote:

Well, you know how insurance companies operate. They do anything to avoid paying a claim. What if you crash in the carpark of your customer? They'd add up 2 + 2. Limited business use is only something like €50 per annum iirc, so a bit of a risk you're taking there, although I agree it's probably highly unlikely anyone will ever find out provided you don't carry samples / goods

Ask them already and they said not to bother, think it was 200 for the year, kept the letter I was sent(made sure to get them to put it in writing) so I shouldnt have any problems, probably depends on the insurance company thou

unkel

Big Nelly wrote:

kept the letter I was sent(made sure to get them to put it in writing)

Nice one. Make sure to hold onto it!

daveg

We get 54cent per mile. Seems very low from what I've read here.. Might start insisting on taxis !!

dogg_r_69

We get 98c per mile for the 1st 4,000 miles then it drops to something like 47c after that. I had a print out of it. Don't know where it is now. They got it off a government website. The ammount they pay on milage is ductible off their tax bill as far as I heard.

unkel

dogg_r_69 wrote:

We get 98c per mile for the 1st 4,000 miles then it drops to something like 47c after that. I had a print out of it. Don't know where it is now. They got it off a government website

They are old rates, the new rates are higher. Lookup your contract of employment. If it states you are entitled to public service expenses, you should be getting more!

seamus

My employer has a number of sites and a number of mobile workers, so the mileage allowance is fixed when travelling between sites. Even at that, it's a good deal higher that 40c/mile.

She should certainly ask for more.

smokey2

was talking to my boss about this recently and he said we get 80 cent per mile up to €2500 and after that it's 40 cent per mile!!