Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Civil Service Mileage Rates Ireland

Options
  • 05-06-2024 2:25pm
    #1
    Roscodaisy
    Registered Users Posts: 10 ✭


    Howdy Lads, just wondering if anyone can help me with calculating civil service mileage rates.
    I’m starting a new job soon and I’m gonna be using my own private vehicle for business purposes.

    On the revenue website, they have four distance bands seemingly dependant on how much mileage you do there is a different ‘mileage rate’ for each band.
    https://www.revenue.ie/en/employing-people/employee-expenses/travel-and-subsistence/civil-service-rates.aspx

    So say for example for a 2.0l engine, this is how much cent per KM you get:

    Up to 1,500 km
    (Band 1)
    51.82 cent per Km

    1,501 - 5,500 km
    (Band 2)
    90.63 cent

    5,501 - 25,000 km
    (Band 3)
    39.22 cent

    25,001 km and over
    (Band 4)
    25.87 cent

    My question is:

    1. Is this supposed to be calculated as I see it?
      As far as I can see, any business mileage done from 0-1500km is paid at 51.82 cents per/KM and when I’ve done over 1500km of business mileage I move up to the next band and get paid 90.63 cent per/KM ??
    2. If this is the case, do these rate reset every year ? Or is it case where I carry my the amount of mileage done onto the next year?

    I just want to know how to calculate it and what other people are doing, so I know what I’m talking about when I have the chat with my employer.
    Thanks

    Post edited by Spear on


Comments

  • Options
    #2
    Esel
    Registered Users Posts: 22,289 ✭✭✭✭Esel


    I'm sure you have it right. Resets at year end. Remember you will need Business Use on your insurance.

    Not your ornery onager



  • Options
    #3
    gipi
    Registered Users Posts: 2,974 ✭✭✭gipi


    Yeah, that's how it's calculated and it resets on Jan 1st.



  • Options
    #4
    Baseball72
    Registered Users Posts: 198 ✭✭Baseball72


    https://www.boards.ie/discussion/2058354693/civil-service-mileage-rates-ireland

    Thank you - I did not know that!…checking my figures for 2023…….



  • Options
    #5
    Roscodaisy
    Registered Users Posts: 10 ✭Roscodaisy


    Yep will make sure to put business use on Insurance.
    I can’t seem to find anywhere that actually states that the mileage rates are reset each year, but I “presume” they are…

    Although, I’m not certain why the rate band payment per km increases after 1501km to 5000km (to 90.63 cent/KM). Perhaps to account for private vehicle wear and tear as more Business mileage is done ??

    …but then the rate drops back down to 39.22cent /KM after 5001 KM.?
    … and further drops to 25.87 cent after 25,000 KM?

    What’s the logic here… Revenue don’t give an example on their website.

    …different story trying to explain this to the employer without issues when your suddenly asking for 90.63 cent per/KM after you hit 1501 business miles….as far as I’m aware most people just think it’s always 0.50 cent/KM no matter how many KM their doing.

    Is there someone in Revenue or a contact who can clarify these questions?
    Or perhaps an account on here ?

    If anyone knows let me know



  • Options
    #6
    Roscodaisy
    Registered Users Posts: 10 ✭Roscodaisy


    Anybody know why the story is here?



  • Advertisement
  • Options
    #7
    Esel
    Registered Users Posts: 22,289 ✭✭✭✭Esel


    It's pretty clear, to be fair.

    The employer will be aware of the rates.

    Not your ornery onager



  • Options
    #8
    Nigel Fairservice
    Moderators, Regional Abroad Moderators Posts: 2,249 Mod ✭✭✭✭Nigel Fairservice


    https://www.boards.ie/discussion/comment/122228426#Comment_122228426

    The civil service rates are the maximum amounts that an employee can claim for travel tax free so most companies will be aware of the civil service rates. You get 1500 kilometres on Band 1, the next 4000 kilometres on Band 2, and the next 19500 kilometres on Band 3. It's really easy to work out. You just multiply the amount of kilometres you travelled by the relevant band rate.



  • Options
    #9
    Roscodaisy
    Registered Users Posts: 10 ✭Roscodaisy


    ok thanks Nigel. Yeah it’s easy to work out, but do you know what the logic/explanation is for the rate to increase from €0.50 for the first 1500km to €0.93 per Km from 1500-5000km of business mileage?
    (and then drop down to €0.32 after 5000km)

    Why do the rates fluctuate up and down as more mileage is done ?

    Also, am I right in saying that an employer has the right to pay you less than civil services rates ?



  • Options
    #10
    Nigel Fairservice
    Moderators, Regional Abroad Moderators Posts: 2,249 Mod ✭✭✭✭Nigel Fairservice


    I imagine it's to discourage paying staff too much in expenses that are non taxable. Anyone doing big mileage should probably be using a company vehicle. As of this year travel expenses are reportable to Revenue so they might start taking an interest in what kind of money people are getting tax free.



  • Options
    #11
    Roscodaisy
    Registered Users Posts: 10 ✭Roscodaisy


    Ok makes sense. Although still doesn’t explain why it jumps from €0.50 to €0.90 per KM. I was thinking this jump after 1500km is to account for wear and tear as more KM are done ?


    on another note, It’s actually madness when you think of how much tax we pay - everything which is a ‘benefit’, even though your paying tax on the product (fuel), and playing tax on the money to earn to buy it (income tax) - you must also pay tax to receive it… it’s shocking how much we actually get taxed in this country



  • Advertisement
  • Options
    #12
    witchgirl26
    Registered Users Posts: 2,140 ✭✭✭witchgirl26


    The tax in this country is not that much different to other countries to be fair.

    The distance travelled resets to zero at the start of the tax year (1 Jan). Which isn't a bad thing as Band 4 is not where you want to be at for too long. The idea with the Band 2 being higher is that is the tipping point - maintenance etc is increased on your personal car due to the increase in mileage for work travel so therefore it should be paid for. The dip off for Band 3 is that is probably where it should be looked at for having a company vehicle or access to one for work related journeys. Especially if over a few years you see a pattern where you're more in Band 3 & 4 than 1 or 2.

    Some businesses offer a flat rate because that is easier for them to work out & as long as it's less than the civil service rates, no tax becomes due on it. If the company was to offer more than the civil service rates, there would be tax included on the difference. That causes hassle for everyone so easier to keep to the civil service rates.



  • Options
    #13
    Roscodaisy
    Registered Users Posts: 10 ✭Roscodaisy


    ok makes sense



Advertisement