What’s the VAT threshold for 2025? 

The VAT threshold in the UK for 2025 is £90,000. This has increased from £85,000 in April 2024.

Is the VAT threshold reviewed every year?

Yes, the VAT threshold is reviewed annually in the UK. In the past, it typically increased each year, but there was a notable pause from 2017 to 2024 when it stayed the same.

Here’s how the VAT threshold has changed from 2014 to 2025: 

How to calculate how much VAT you owe

Let’s imagine you’re the proud owner of Glow & Co, a VAT-registered business that sells handmade candles in the UK.  

You’ve had a great month, and now it’s time to figure out how much VAT you owe HMRC. 

Step 1: work out your VAT on sales (output VAT)

This is the VAT you’ve collected from customers.  

Let’s say your total sales for the month were £10,000, and you charge the standard VAT rate of 20%. 

VAT collected = £10,000 × 20% = £2,000 

Step 2: work out your VAT on purchases (input VAT)

You can reclaim VAT on your business expenses.  

This month, you bought wax, wicks, jars, and packaging materials for £2,500, and the VAT included in those costs was 20%. 

VAT paid = £2,500 × 20% = £500 

Step 3: calculate the VAT you owe

To find out how much you need to pay HMRC, subtract your input VAT from your output VAT:

£2,000 (VAT collected) – £500 (VAT paid) = £1,500

This means you owe £1,500 in VAT to HMRC for the month. 

What if you paid more VAT than you collected? 

Let’s say in a quieter month you only made £3,000 in sales (£600 VAT collected) but had £4,000 in business expenses (£800 VAT paid).

£600 (VAT collected) – £800 (VAT paid) = -£200

In this case, HMRC would owe you £200, which you can reclaim as a VAT refund. 

Simplify and automate your business expenses with Capture Expense 

Our sophisticated app automatically applies the correct VAT rate, keeping your records accurate and fully compliant with HMRC—so you never have to worry about miscalculations. Book a personalised demo today to see Capture Expense in action. 

Getting your head around the nuances of travel expenses in Ireland can be tricky. It’s like trying to find your way through Dublin for the first time without Google Maps—confusing, frustrating, and if you’re not careful, it could end up costing you more than it should. 

But don’t worry, if you’re an employer in Ireland looking to reimburse your team for work-related travel, you’re in good hands. 

We’ll outline what qualifies as a travel expense in Ireland, when you can reimburse your employees, and how to report it to Revenue. 

What’s a travel expense in Ireland?

Travel expenses in Ireland refer to the costs incurred by an individual or business for work-related travel. These expenses can include:

• Transport costs (e.g., fuel, mileage for personal vehicle use, public transport fares, taxis, flights) 
• Accommodation (e.g., hotel stays for business trips) 
• Subsistence (e.g., meals and incidental expenses while travelling for work) 
• Tolls and parking fees  

For employees, travel expenses may be reimbursed by employers or claimed as allowable expenses for tax purposes, subject to Revenue’s guidelines.  

Reimbursement may be based on actual costs incurred or standard mileage/subsistence rates set by Revenue. 

When can you reimburse your employees for their travel expenses in Ireland?

You can reimburse your employees for travel expenses when they travel for work and the expense is incurred wholly, exclusively, and necessarily for business. 

This includes covering costs like transport, accommodation, and meals if they have to stay away from their usual workplace. If they use their own car, motorcycle, or bicycle for business travel, you can also compensate them based on mileage rates (see below). 

A quick example 

If one of your sales representatives needs to visit multiple client sites across the country, you can reimburse their train fares, hotel stays, and meals.  

Similarly, if an employee drives their own car to attend a conference on behalf of the company, you can cover their fuel costs based on the approved mileage rate. 

How to calculate the distance of a business trip in Ireland

To work out how far your employees travel for work, you’ll need to use the lower of either: 

• The distance between your employee’s home and the temporary place of work. 
• The distance between your employee’s normal place of work and the temporary place of work. 

A real–world scenario

Let’s say one of your employees (Carly) normally works in Dublin city centre but has to travel to Cork for a meeting. 

• The distance from Carly’s home in Bray to Cork is 250 km. 
• The distance from her normal office in Dublin to Cork is 220 km. 

Since the Dublin to Cork route is shorter, that’s the distance used for her travel calculation. 

The travel and subsistence rates in Ireland for 2025 

Now you know the when and how to reimburse your employees’ travel expenses in Ireland, let’s look at the how much. 

Thankfully, Revenue have set very clear guidelines when it comes to travel and subsistence in Ireland. 

Travel 

As we mentioned above, you can reimburse your employees for using their personal vehicles for business journeys. Don’t forget, this doesn’t include commuting from home to their normal place of work. 

You have the option to either reimburse the actual travel expenses incurred by the employee or provide a fixed mileage allowance per kilometre.  

Here are the civil service mileage rates for 2025. 

Subsistence  

When it comes to reimbursing your employees for subsistence expenses, you have three options: 

• Apply the civil service rates: this is the simplest option. You can reimburse your employees using the official civil service subsistence rates set by Revenue. These rates are pre-approved and tax-free.
  
• Set your own rates: alternatively, you can choose to set your own reimbursement rates, but they must not exceed the civil service rates.
• Reimburse actual expenses: another option is to reimburse your employees for the exact costs they incurred during their trip. 

What you need to know about ERR

Since January 1, 2024, new payment reporting rules, known as Enhanced Reporting Requirements (ERR), have come into effect. Here’s what you need to know: 

These rules, introduced under Section 897C of the Finance Act 2022, are designed to improve transparency in how businesses handle certain expenses. However, they also bring some compliance challenges that you’ll need to be aware of.

What needs to be reported 

You’ll need to report specific details about certain payments made to your employees: 

1. Small benefit exemption: you need to record the date the benefit was given and its value. 
2. Remote working daily allowance: report the total number of days covered, the amount paid, and the payment date. 
3. Travel & subsistence payments: for each payment, record the amount and date paid, under these categories: 

• Travel (both vouched and unvouched) 
• Subsistence (both vouched and unvouched) 
• Site-based employees (including ‘country money’) 
• Emergency travel 
• Eating on-site 

How do you report it? 

You must submit these details to Revenue at the time of payment or even before it’s made.  

Reports should be submitted via the Revenue Online Service (ROS), either manually or through your accounting/ERP software. 

Are you looking for a platform that can handle all your travel expenses in Ireland? 

With just a few taps, you can capture receipts, automate employee reimbursements, and effortlessly manage all your travel expenses in Ireland. Book a demo today to see Capture Expense in action.  

Do you know how to make a subsistence allowance claim? Are you familiar with the day and overnight allowance rates in Ireland? If you’re struggling with the civil service subsistence rates, you’re not alone.  

But don’t worry—we’ve got you covered. We’ll walk you through everything you need to know, from what a subsistence allowance is and when you can claim it, to the latest civil service subsistence rates for 2025. 

What’s a subsistence allowance in Ireland? 

A subsistence allowance in Ireland refers to a tax-free payment provided to employees to cover the cost of meals, accommodation, and other daily expenses incurred while travelling for work.  

These allowances, set by Revenue, are based on civil service rates and apply to both public and private sector employees. 

Employers use these rates to reimburse employees for business travel expenses without the need for detailed receipts—provided the trip meets Revenue’s qualifying conditions. 

When can you claim subsistence allowance in Ireland?

If you’re an employee in Ireland, you can claim a subsistence allowance when you meet all of the following conditions: 

1. You had to travel away from your usual workplace. So, if you’re just popping to a different desk in the same office, that won’t count!
2. The travel is necessary for your job. It’s not just about grabbing lunch somewhere different—you must be travelling as part of your work duties.
3. You’ve travelled more than 8km from your normal workplace. This means short trips within the local area usually won’t qualify (also, your regular home-to-work commute doesn’t count).
4. You’ve been away for more than 5 hours. Just running an errand or a short meeting outside the office? That won’t be enough. You need to be away for a significant part of your working day.

Are there any exceptions? 

Yes, not all work-related expenses can be reimbursed by your employer. The key rule is that expenses must be wholly, exclusively, and necessarily incurred for your job.  

If an expense has a personal element or isn’t essential for your work duties, it won’t be covered. 

Here are some common examples of expenses that won’t be reimbursed:

• Family travel costs: if your spouse, partner, or children travel with you for work, their costs won’t be reimbursed.
• Parking or traffic fines: if you get a fine for speeding or illegal parking, you’ll have to pay it yourself.
• Hotel extras: charges for things like laundry, minibar snacks, or personal phone calls. 

What to include in your subsistence allowance claim 

Here’s your checklist for a valid subsistence allowance claim. Make sure you provide full details for each trip separately. 

What are the civil service subsistence rates for 2025?

Here are the civil service subsistence rates set by Revenue:  

Accommodation subsistence rates in Ireland

Day allowances

These are Revenue’s domestic day subsistence rates, effective from 29th January 2025:  

To qualify, your assignment must be at least eight kilometres away from both your home and usual workplace. And if you’re claiming both a day and overnight allowance (see below), you’ll need to work at least five hours the next day. 

Overnight allowance 

Here are the civil service overnight rates, effective from 29th January 2025:  

It’s also worth noting that for vouched accommodation in Dublin, the reimbursable amount is up to €205.53 for accommodation, plus €46.17 for meals. 

What about civil service mileage rates in Ireland?

If you didn’t know already, you can be reimbursed for using your personal vehicle for work-related travel. 

Your employer can either cover your actual travel costs or pay you a fixed mileage allowance per kilometre. The great thing is that Revenue’s civil service mileage rates set clear guidelines for this—making the process really straightforward. 

If, however, you’re just after the civil service motoring and bicycle rates for 2025, then look no further:  

Cars (rate per kilometre)

Motorcycles (rate per kilometre)

Bicycles 

Keep all your expenses in one place

Whether your organisation uses Revenue’s civil service subsistence rates or sets their own, Capture Expense guarantees that everyone will be reimbursed on time, every time—no exceptions, no mistakes. Book a demo today to see just how easy it is to use. 

Revenue is putting more and more effort into helping businesses of all sizes follow their rules and establish good financial practices. However, understanding expense compliance can still be tricky, and the penalties for mistakes can be serious. 

To help you better understand and comply with Revenue’s guidelines, we’ve created this comprehensive guide. Here, you’ll find clear and practical advice on claiming and processing expenses in Ireland, ensuring you stay on the right side of the regulations while maximising your financial efficiency.

Whether you’re a small startup or a large corporation, this guide aims to illuminate the path to seamless expense compliance in Ireland. 

How to make sure your business complies with Revenue 

Many people think Revenue inspectors only care about completed expense claims and receipts, but they actually review your entire travel and expense process.

The 6 key areas Revenue inspectors focus on

1. A clear and enforced policy

Make sure your business has a clear expense policy that all employees understand and follow.

2. Appropriate approval processes

Ensure that the right people are approving expenses at the right levels.

3. Appropriate documentation

Keep detailed records of all receipts and expense forms.

4. Appropriate checks and controls

Implement checks and controls to prevent errors and fraud. Regularly review these controls to ensure they are effective.

5. Tax and VAT compliance

Ensure that all expenses comply with tax and VAT regulations. You need to keep up to date with any changes in these regulations.

6. A robust and secure payment process

Use secure methods for reimbursing employees. Ensure payments are processed accurately and on time.

The VAT rates in Ireland

VAT is a general consumption tax that is charged directly on the sale of goods and services in Ireland.

Here are the rates for 2025:

It’s also worth noting that the supply of some services, such as financial, medical and educational services, are exempt from VAT. 

Who can reclaim VAT?

If you are selling goods or services that are subject to VAT, or you are involved in qualifying activities, you can reclaim VAT.

To do this, you need to submit a VAT 3 return. However, you cannot reclaim VAT on goods or services used for making exempt supplies or for non-business activities.  
 
For costs that relate to both taxable and non-taxable activities, you can only reclaim the VAT portion related to your taxable supplies.  
 
It’s also worth mentioning that you have up to four years to claim a VAT repayment.

What VAT can you not reclaim?

You cannot reclaim VAT on the following costs, even if you are registered for VAT and make only taxable supplies: 

• Food, drink, or personal services for you, your agents, or employees (unless part of a taxable service) 

• Accommodation (unless related to a qualifying conference) 

• Food, drink, accommodation, or entertainment included in advertising costs 

• Entertainment 

• Passenger motor vehicles (except stock or qualifying vehicles) 

• Petrol (unless used as stock-in-trade) 

• Contract work involving non-deductible goods 

• Goods subject to a margin scheme 

• Costs for property used for non-business purposes 

Civil service mileage rates in Ireland

You can reimburse your employees for using their personal vehicles for business journeys. This does not include commuting from home to their normal place of work.

You have the option to either reimburse the actual travel expenses incurred by the employee or provide a fixed mileage allowance per kilometre. 

Here are the new civil service rates for mileage allowance in Ireland for 2025, effective from 1st September 2023. 

Civil service motoring and bicycle rates

Cars (rate per kilometre)

Motor travel rates (from 1 September 2022)

For electric vehicles, mileage claims will follow the rate applicable to engine capacity 1201cc-1500cc.

Reduced motor travel rates per kilometre

Reduced mileage rates apply to work-related journeys that aren’t solely for job performance. Examples include attendance at approved courses or conferences. 

Motorcycles (rate per kilometre)

Motorcycle rates (from 5 March 2009) 

Bicycles

Bicycle rates (from 1 February 2007

If you’re interested in learning more about Civil Service Mileage Rates and how to calculate mileage claims click here.  

The civil service subsistence rates for 2025

Rates for assignments within the State

Overnight allowance

Domestic overnight subsistence rates (from 29th January 2025) 

The overnight allowance applies to assignments lasting up to 24 hours. The assignment must be at least 100 kilometres from your employee’s home and regular workplace. 

The rate category is determined by the duration of the assignment:

• The normal rate applies for up to 14 nights.
• The reduced rate applies for the following 14 nights.
• The detention rate applies for each of the next 28 nights. 

For assignments exceeding 56 nights, your employee must apply to Revenue to confirm that subsistence is still available.

The period of subsistence at any single location is limited to six months. 

Day allowances

Domestic day subsistence rates (from 29th January 2025) 

 The assignment must be more than eight kilometres from your employee’s home and normal workplace. It’s also worth noting that they can only claim both a day and overnight allowance if they work five hours or more the next day. 

Rates for assignments outside the State

Short term assignment 

Subsistence rates for short term assignments 

 These rates can be applied to a single temporary assignment abroad lasting up to six months. 

Long term assignment

A long-term assignment lasts over six months. During the initial month, you can provide subsistence at the overnight rate to help your employee find self-catering accommodation. For the rest of the assignment, you can cover reasonable accommodation costs and 50% of the ten-hour day rate.

If you have remote working expenses

You can make a payment of €3.20 per workday to a remote working employee without deducting:

• Income Tax 
• Pay Related Social Insurance (PRSI)
• Universal Social Charge (USC)

This payment is to cover expenses incurred such as broadband, heating and electricity costs. 

And for expenses higher than €3.20 per workday 

Your employee’s daily expenses might go over €3.20, and you can reimburse them for these costs. However, if the amount exceeds €3.20 per workday, you need to deduct tax from it.  
 
Make sure to keep records of all the payments made.

What you need to know about Enhanced Reporting Requirements

Starting January 1, 2024, your finance teams in the Republic of Ireland must adhere to updated payment reporting regulations; known as Enhanced Reporting Requirements (ERR). These regulations enhance transparency in expenditure but present challenges for timely compliance. The new reporting requirements are introduced by Section 897C of the Finance Act 2022.

What needs to be reported?

1. Small benefit exemption: you need to report the date paid and the value of the benefit.

2. Remote working daily allowance: report the total number of days, amount paid, and date paid.

3. Travel and subsistence payments: report the date paid and amount for each payment under the following categories:

• Travel (vouched and unvouched) 

• Subsistence (vouched and unvouched) 

• Site-based employees (including ‘country money’) 

• Emergency travel 

• Eating on site

How to report this

• Payments must be reported to Revenue at the time of payment or in advance.
• Submit reports via the Revenue Online Service (ROS), either manually or using accounting or ERP software.

What you need to know about digital record-keeping

In Ireland, you can go paperless by storing receipts digitally instead of keeping paper copies.

However, you must follow certain requirements to comply with the rules on storing, maintaining, transmitting, reproducing, and communicating records electronically.

One example of these requirements is ensuring the scan quality is high enough for the receipt to be easily readable.

You can find all the necessary requirements in Revenue’s Electronic Storage manual. 

4 easy steps to comply with Revenue

Here’s a very brief overview of what you need to do to make sure your business is fully compliant:

Step 1: designate specific individuals at appropriate levels to approve expenses

• Make sure that each expense is reviewed and authorised by someone with the appropriate level of authority and responsibility within your organisation, thereby maintaining accountability and preventing misuse of funds. 

• Ensure even the highest-ranking employees submit their expenses for approval.
   

Step 2: maintain a traceable audit trail

• Use an expense management system that tracks every step of the process.

• Make sure that every expense is logged and traceable from submission to approval and reimbursement. 

Step 3: keep valid evidence

• Always obtain valid VAT receipts and credit card slips for expenses.

• Attach these receipts to the corresponding expense claims.

Step 4: find an expense management system that fully complies with Revenue’s regulations 

• It is essential to identify an expense management system. like Capture Expense, that ensures complete compliance with all of Revenue’s regulations.
  

By following these guidelines, you can ensure your business meets Revenue’s requirements and is prepared for an inspection. 

The expenses software for total Revenue compliance

Get all the features and functionality you need to keep your employee expenses compliant, in one central platform. Book a demo to see Capture Expense in action. 

Imagine this; you and a handful of your employees are planning a business trip for a few days. 

The schedule is packed with meetings during the day and some fun team-building activities in the evening. 

 While the business side is all set, you’re still unsure about the right travel allowance to provide your employees. 

You’ve probably got a few questions like: What are Revenue’s civil service overnight rates in 2025? How do I reimburse my employees for overnight trips? Are there any exceptions?

If these are some of the questions on your mind—you’ve definitely come to the right place. 

What’s a travel allowance in Ireland? 

A travel allowance in Ireland is a payment made to employees to cover the costs they incur while travelling for work-related purposes.  

This can include reimbursing expenses like accommodation, meals, or other costs when they’re working away from their usual workplace.  

It can also involve mileage payments for using their personal vehicles—like cars, motorcycles, or bicycles—for business travel. 

What are the civil service overnight rates within the State? 

Here are the civil service overnight rates within the State for 2025: 

Standard domestic subsistence rates 

Overnight allowance applies to assignments lasting up to 24 hours and must be at least 100km away from your employee’s home and usual workplace.

The rates depend on the duration of the assignment:

• The normal rate applies for the first 14 nights. 
• The reduced rate covers the following 14 nights. 
• The detention rate applies for the next 28 nights.

If the assignment goes beyond 56 nights, you’ll need to reach out to Revenue to confirm that subsistence can still be paid.  

Keep in mind, the period of subsistence at any single location is limited to six months.  

Vouched accommodation (Dublin only) 

What are the civil service overnight rates outside the State? 

Here are the civil service overnight rates outside the State for 2025:  

For a short-term assignment 

It’s worth noting that these rates can be applied to a single temporary assignment abroad lasting up to six months.  

For a long-term assignment 

In case you didn’t know, a long-term assignment is anything over six months.

During the first month, you can provide subsistence at the overnight rate to help your employees find self-catering accommodation.  

For the rest of the assignment, you can cover reasonable accommodation costs and 50% of the ten-hour day rate. 

How to reimburse your employees for overnight trips in Ireland 

Here’s how you can reimburse your employees for overnight trips in 2025.

You have three options:

• Use the civil service rates: this is by far the easiest option. You can reimburse your employees using the official civil service subsistence rates set by Revenue (see above). These rates are pre-approved and tax-free.
• Set your own rates: if you prefer, you can set your own reimbursement rates—but they must be equal to, or lower than, the civil service rates.
• Reimburse actual costs: you can also pay your employees back for the exact amount they spent on their trip.

Are there any conditions when reimbursing employees’ actual subsistence costs?

Yes, you’ll need to make sure that: 

• The expenses were incurred wholly, exclusively, and necessarily when carrying out the duties of their employment. 
• The costs were repaid on the basis of vouched receipts (such as hotel receipts). 

Please note that if you want to pay more than the civil service rates for overnight trips, you’ll need to get special approval from Revenue. 

Let’s look at some examples

Within the State

One of your employees, Alexis, is traveling from Dublin to Galway for a two-day conference.  

She leaves her home (in Dublin) early on Monday morning, and stays overnight in Galway, before returning late Tuesday evening. 

When Alexis returns, she submits a claim for her overnight travel allowance. Since Galway is more than 100 km from her home and workplace, and her stay lasted more than 24 hours, she qualifies for the civil service overnight allowance.

Using the civil service overnight rates, Alexis can claim the normal rate of €205.53 for her overnight stay.  

Outside the State 

You send David on a temporary assignment to Paris for three months to support an ongoing project. 

Since David’s assignment is abroad, he can claim a subsistence allowance under the civil service rates for overseas trips. Here’s how it works for his three-month stay: 

For the first 30 days of his assignment, David qualifies for 100% of the normal overnight rate. For example, if the rate for Paris is €180 per night, he can claim the full €180 per night for this period. 

For the next 60 days, David qualifies for 75% of the normal overnight rate. Using the same example (€180), he would receive €135 per night during these two months. 

Assuming you reimburse David using the civil service overnight rates, here’s the breakdown:

• First 30 days: €180 x 30 = €5,400 
• Next 60 days: €135 x 60 = €8,100
• Total reimbursement: € 13,500 

Have you met Capture Expense?

Whether you’re using the civil service overnight rates or setting your own rates (within the approved limits, don’t forget), Capture Expense will make sure that all your reimbursements are accurate, timely and in full compliance with Revenue. Book a demo today to see just how easy it is to use. 

The only thing better than an all–expenses–paid business trip is an all–expenses–paid business trip overseas.  
 
The food, the hotels, the opportunity to explore—it’s all part of the experience. 
 
If you’re new to overseas subsistence allowance, or you’ve never heard of HMRC’s overseas subsistence rates, you’re in good hands.  
 
We’ll provide you with the rates for 2025, how to use them to reimburse your employees, and some real-world examples.

What is an overseas subsistence allowance?

Overseas subsistence allowance refers to a payment or reimbursement provided to employees who are required to travel and work outside their home country.  
 
This allowance is intended to cover their daily living expenses, such as meals, accommodation, and other incidentals, while they’re on assignment abroad.  
 
The amount typically depends on the location, duration of the stay, and the employer’s travel expense policy or government regulations. 

When can you claim overseas subsistence allowance? 

You can claim overseas subsistence allowance when you’re travelling outside the UK for work purposes and your employer (or company, if you’re the employer) is satisfied that the trip is directly related to your job duties.  

It applies when you’re on official business abroad, like attending meetings, conferences, or completing work-related tasks. 

Every company will have their own guidelines and reimbursement processes, but generally speaking, you can claim overseas subsistence allowance when:  

• Your employer approves the claim: meaning the trip must be pre-authorised by your employer (or company).
• You provide receipts or documentation: meaning you may need to show proof of expenses—such as hotel bills, or meal receipts—to support your claim and make sure it aligns with company policies. 

Are there any exceptions?

Yes, there are some expenses it doesn’t cover.  

The overseas subsistence allowance is specifically designed to cover your accommodation and daily living expenses while you’re in the foreign country. However, it doesn’t include incidental expenses you might have along the way.

For example:

• The cost of a taxi to the airport in the UK. 
• Snacks or drinks you buy at the airport before your flight.  

If you have these kinds of expenses, your employer (or company) may be able to reimburse you separately, but they’re not included in HMRC’s overseas subsistence rates.  

What are HMRC’s overseas subsistence rates? 

Here are HMRC’s overseas subsistence rates for some of the most popular destinations in 2025:  

Australia (Sydney)  

Canada (Montreal)

France (Paris)

Hong Kong 

Singapore

United Arab Emirates (Dubai) 

United States of America (Los Angeles)

How to use HMRC’s overseas subsistence rates 

When it comes to HMRC’s overseas subsistence rates, you have a couple of options for paying your employees: 

• You can pay the 24-hour rate for each complete period of 24 hours. This period starts when the employee arrives at their destination and ends when they leave. For example, if an employee arrives at the airport and starts their journey at 9am, they would be eligible for the 24-hour rate until 9am the next day, and so on.
• You can pay for the accommodation (room rate) along with individual meal rates and other incurred expenses. 

What if your employee is away for less than 24 hours?

You can still use HMRC’s overseas subsistence rates. You’ll just have to divide the period into smaller segments.  

For example, if the period includes an overnight stay, you can pay the room rate, plus the over-5-hour or over-10-hour rates—depending on how long the employee was away. 

Some real-world examples

Let’s look at a couple examples of how you can use HMRC’s overseas subsistence rates to reimburse your employees’ accommodation and subsistence expenses for travel outside the UK. 

Singapore  

One of your employees (let’s call him Matt) goes on a business trip to Singapore. He stays in a hotel for two nights, on a room only basis (i.e., no meals are included). 

Matt arrives in Singapore at 3pm on Monday and leaves on a 9am flight on Wednesday.  

You may reimburse Matt’s subsistence expenses as follows:  

Paris

Someone from your sales team (Sarah), spends a day in Paris for an important meeting. She arrives in Paris at 9am and leaves at 8pm. 

Based on HMRC’s overseas subsistence rates, you can reimburse Sarah’s expenses at the Paris rate of €86.50 (as the trip lasted more than 10 hours). 

If Sarah had left Paris between 2pm and 7pm, your reimbursement would have been limited to the over 5-hour rate: €40. 

Want to keep all your travel expenses in one place? 

Whether you want to track your subsistence allowances in the UK or overseas, Capture Expense will keep everything organised, and in one platform.  

Book a demo today to see how easy it is to submit, track, and manage your expenses—saving you time and keeping you compliant with HMRC’s overseas subsistence rates. 

We know why you’re here. You want the civil service mileage rates in Ireland for 2025. So, without further ado.  

The civil service mileage rates for 2025

Here are the new civil service rates for mileage allowance in Ireland for 2025, set by Revenue, effective from 1st September 2023.  

The rates vary depending on the type of vehicle, which includes cars, motorcycles, or bicycles. They also depend on the distance bands and the mileage allowance rate in euros per kilometre.  

Civil service motoring and bicycle rates

Cars (rate per kilometre)

Motor travel rates (from 1 September 2022) 

For electric vehicles, mileage claims will follow the rate applicable to engine capacity 1201cc-1500cc. 

Reduced motor travel rates per kilometre 

Reduced mileage rates apply to work-related journeys that aren’t solely for job performance. Examples include attendance at approved courses or conferences. 

Motorcycles (rate per kilometre) 

Motorcycle rates (from 5 March 2009)  

Bicycles

Bicycle rates (from 1 February 2007) 

Staying compliant

Now, onto the nitty gritty.

In this guide, we’ll tackle the intricacies of car mileage allowance in Ireland for 2025. From what constitutes a business journey and how to calculate it, to submitting a compliant mileage claim.

Join us as we equip you with everything you need to know about civil service mileage rates in the Emerald Isle.
 

What is a business journey and how do you calculate it? 

A business journey refers to travel undertaken by an employee for work-related purposes. Specifically, when they travel from one place of work to another place of work as part of their duties.

This encompasses: 

• Travel between different countries, such as between Ireland and other countries. 
• Travel to a location that is not their usual place of work.

It’s worth noting that a business journey does not include commuting from home to the normal place of work and vice versa; this is considered private travel.

 Calculating the distance for business travel 

When calculating the distance for business travel, the relevant distance is the lesser of: 

• The distance between the employee’s home and the temporary place of work. 

• The distance between the employee’s normal place of work and the temporary place of work. 

Let’s take a look at an example: 

Imagine that the distance from your employee’s home to a temporary workplace is 50 km. And that the distance from their normal workplace to the temporary one is 30 km.

The business travel distance will be: 30km (the lower of the two distances). 

What’s not included in the mileage allowance?

Not all trips are eligible for reimbursement under the civil service mileage rates in Ireland.

The most common trips which aren’t included are

• Personal trips that aren’t directly related to your employee’s job. 
• Trips between your employee’s home and their regular workplace. 

How to submit a mileage allowance claim in Ireland

To be reimbursed for business-related vehicle expenses, your employees must complete a claim form provided by the company or Revenue. They must also submit evidence of the journeys made in their personal vehicle.

Your employees should keep the following evidence: 

• Receipts for petrol 
• Receipts for parking tolls 
• Any additional receipts pertaining to vehicle usage 
• Addresses visited during travel 
• Purpose of each journey 
• Recorded kilometres driven to and from business travel destinations

You must maintain accurate records of all your employees’ claims and provide full evidence to ensure compliance and avoid issues with Revenue.

It’s worth noting that if you have already reimbursed an employee’s expenses at civil service mileage rates, no additional tax relief will be applicable to the employee. 

How to keep track of your mileage expenses 

It’s essential for both you and your employees to maintain precise records of all work-related trips.

Failure to do so could result in Revenue requesting that these payments be treated as taxable income.

The required records include:  

• Name 
• Address(es) visited during travel 
• Date(s) of the work trip 
• Purpose of the journey  
• Distance travelled 
• The trip’s originating point, planned destination, and final destination 
• Documentation for reimbursement (e.g., receipts or mileage rate) 

FAQs

What is classed as normal place of work?

The normal place of work is where employees usually carry out their job duties. It’s typically where the employer provides the necessary resources for them to work. This might vary depending on the employee’s role. Generally, the normal place of work is not considered the same as where the employee lives. This is unless there’s an objective requirement for them to work from home because their tasks cannot be done elsewhere. If an employee chooses to work from home or if the tasks performed there are minor or administrative, it’s not considered their normal place of work. 

Are sole traders eligible to claim mileage?

Sole traders are not eligible to claim mileage using the civil service mileage rates. Instead, they can only claim for the actual expenses they incur, such as fuel, motor tax, motor insurance, hotels, and related expenses. To do this, sole traders should keep detailed receipts for the business portion of these costs. This ensures that their claims are accurate and compliant with tax regulations. 

Do the civil service mileage rates apply to emergency travel?

Yes, the civil service mileage rates do apply to emergency travel.

When an employee needs to work outside their normal hours to address emergencies requiring immediate attention, you can repay their travel expenses. This includes mileage, which can be reimbursed using the civil service mileage rates.

This reimbursement is tax-free and can be claimed for up to 60 emergencies per year. However, it does not apply to non-emergencies such as covering for absent staff, handling increased workloads, or attending routine events. 

Do the civil service mileage rates apply to voluntary work? 

Yes, organisations with altruistic and non-commercial functions, such as registered charities or sports bodies, can repay travel expenses to individuals working voluntarily and unpaid.  

These expenses are tax-free as long as they are necessary for the individual to perform their work and do not exceed the actual costs incurred. However, the payments must not exceed the civil service rates.

Never miscalculate mileage claims with Capture Expense

Capture Expense ensures compliance with Ireland’s civil service mileage rates by managing cumulative mileage bands and automatically calculating the correct reimbursement rates based on fuel type, engine size, and distance travelled.  

Our platform seamlessly integrates with Google Maps to accurately calculate your employees’ travel distances. It automatically selects the shorter route from either your employee’s home or their normal place of work. This ensures full compliance with Revenue’s guidelines. 

Allow your people to raise, submit and approve their vehicle expenses at any time, from any location through the Capture Expense app and streamline the way your organisation manages spend. Book your personalised demo now.  

Did you know that your employees can claim back hours spent on the road?

Providing mileage allowance for employees who drive for work has become more popular in recent years. However, with HMRC’s many rules and updates, understanding how this process operates can be confusing for both you and your employees. 

This blog aims to offer a complete guide on everything you need to know regarding HMRC mileage reimbursement rates in 2025.

What is HMRC’s mileage allowance?

Car allowance mileage rates allow employees to claim back vehicle expenses for business purposes, covering costs like petrol, road tax, and insurance. Instead of individually calculating wear and tear on each vehicle, HMRC uses standard pence per mile expenses called ‘Mileage Allowance Payments’ (MAPs).  
 
This deduction applies to any employee using their vehicle for business. The purpose is to align with tax regulations, ensuring business costs are tax-deductible and not subject to tax when incurred from a personal account. 

How much is the HMRC 2025 mileage allowance?

With the HMRC set mileage allowance, the same rate is applied for every employee, depending on the type of vehicle they use.  

Calculating business mileage is straightforward. All you need to do is multiply the miles travelled by the mileage rate for your vehicle.

For instance, if an employee travels 18,000 business miles in their car, the mileage deduction for the year would be £6,500 (10,000 miles x 45p + 8,000 miles x 25p)

It’s also worth noting that if they travel with colleagues from the same company, the driver can claim an extra 5p per mile per passenger. 

Let’s take a closer look at each milage allowance  

HMRC mileage reimbursement rates for cars and van

The HMRC-approved mileage rate for cars and vans is £0.45 per mile for the first 10,000 miles per year. After that, it’s £0.25 per mile

For example, if your employee drove 19,000 miles for work this year, they’d receive:

• £4,500 for the first 10,000 miles (10,000 x £0.45) 
• £2,250 for the next 9,000 miles (9,000 x £0.25

For a total reimbursement of £6,750

Hybrid cars follow the same standard rates, while electric cars have a fixed rate of £0.05 per mile, with no limit on mileage. 

HMRC mileage reimbursement rates for motorcycles

If your employee owns a motorcycle, they’re eligible to receive £0.24 per mile when driving for business purposes.

Unlike cars and vans, motorcycles are not subjected to the 10,000 miles limit, which means that going above this threshold does not change the 24p rate.

For example, if your employee drove 5000 miles for work this year on their motorbike, they’d receive

£0.24 x 5000 = £1,200 in tax-free reimbursement.  

HMRC mileage reimbursement rates for bicycles

Those who own bicycles might not be paying for fuel, but still incur costs such as insurance, as well as general wear and tear during use. The government recognises this and awards £0.20 per mile for an unlimited amount of business-related mileage.

For example, if your employee cycled 450 miles for eligible business trips this year, they’d receive

£0.20 x 450 = £90 to in tax-free reimbursement. 

What journeys can employees claim mileage on?

Whether your employees drive to work frequently or occasionally, it is worth keeping track of their mileage and understanding what trips qualify to be exempt from taxes, and which do not.

Business journeys employees can claim:

• Travelling from one office to another. 
• Travelling to a temporary location to conduct business (i.e., meeting a client or attending an event).

Business journeys employees can’t claim:

• The daily commute to a permanent office. 
• Travelling to a location very close by. 

• Any travel undertaken for private purposes, even if work-related activities such as making calls or running errands are included.

The only tax-free method for reimbursing business miles is through the approved mileage allowance. Giving an employee a company car or a fixed sum towards petrol will both be taxed, so be aware here.   
 
Other travel expenses like parking charges and road tolls while using a company vehicle are covered under subsistence expenditure, not the mileage allowance. 

What are HMRC advisory fuel rates? 

HMRC advisory fuel rates apply to company-owned cars and serve two main purposes:

1. Reimbursing employees for business travel expenses incurred in a company car. 
2. Managing reimbursements when employees use the company car for personal travel and need to repay the business. 

Company car fuel rates are reviewed every three months and can change based on actual fuel rates. You can only rely on the previous rates for up to one month before switching to the current rates.

HMRC fuel rates are influenced by factors like engine size, manufacturer data on miles per gallon, current fuel prices, and the calculated rate per mile

If your employee is using a hybrid car, it’s treated like a petrol or diesel car. But if they’ve got a fully electric vehicle, they are reimbursed at £0.09 per mile. 

The following tables were taken from HMRC. They’re provided with the purpose of breaking down exactly why fuel rates are at their current numbers: 

 Petrol 

Diesel  

LPG (Liquefied Petroleum Gas) 

In reality, only the size of the vehicle’s engine and its equivalent price per mile matter.

Let’s consider an example where your business owns a company car.

The car has a 1000cc petrol engine, an employee pays for fuel for 3000 business miles per year. Additionally, the same employee uses the company car for personal use for 800 miles per year.

Using HMRC’s advisory fuel rates for petrol cars with engines up to 1400cc at £0.12 per mile:

• £0.12 x 3000 miles = £360 for business use. 
• £0.12 x 800 miles = £96 for personal use.
   

Therefore, your business can claim £360 from HMRC through the fuel advisory for 2025, and you can also recoup £96 from the employee for personal use. 

FAQs 

What vehicles are eligible for mileage allowance? 

Employees are eligible to receive mileage allowance payments for any vehicle they own and have registered with the DVLA, such as cars, vans, motorcycles, scooters, and bicycles, provided these vehicles are used for work purposes. 

When do you need to report HMRC mileage reimbursement rates?

If an employee travels over 10,000 miles, you must report it to HMRC using form P11D. Paying employees more than the approved amount of 45p per mile is also considered a benefit and must be reported on a P11D and taxed. 

What’s the best way to reimburse your employees in 2025? 

Tracking and calculating individual mileage allowances for employees, especially for SMEs with company cars, can be tedious. However, expense management software like Capture Expense, uses accurate reimbursement features to simplify this process by automatically calculating mileage based on journey data and HMRC figures, saving time and effort.

Ready to streamline your mileage allowance process?

Book a demo with Capture Expense today and discover how our software simplifies tracking, calculating, and reimbursing mileage while ensuring compliance with HMRC mileage reimbursement rates.  

Most people love the perks of travelling for work—new places, new faces, and maybe even the occasional upgrade—but let’s face it, nobody enjoys the paperwork that follows.  

Fortunately, HMRC’s subsistence rates make claiming meal allowances a lot simpler for everyone involved.  

For employees, they eliminate the need to meticulously track and save every single receipt from their work trips (because they can claim a set amount for meals and snacks instead). 

For employers, the process is streamlined too. With clear, standardised rates, there’s no need to cross-check endless receipts or worry about overcomplicated expense claims. 

If you’re new to HMRC meal allowances, you’re in good hands. We’ll outline exactly what they are, the rates for 2025, and how to report them.

What is an HMRC meal allowance? 

The HMRC meal allowance, often called a “subsistence allowance,” is a set amount of money you can claim back from your employer (or company) when you’re working away from your usual place of work. It’s meant to cover the cost of meals, like lunch or dinner, during business trips or situations where you’re required to travel for work. 

The key is that the expense has to be “reasonable” and meet HMRC guidelines—so you can’t go all out on a five-course meal at a fancy restaurant, unless it’s within the limits set by your company’s expense policy. 

When do HMRC subsistence rates apply?

 HMRC subsistence rates apply when: 

• You’re travelling away from your usual workplace for business purposes.
• Your business trip requires you to be away for a significant part of the day or overnight.
• You end up with extra costs, like meals or accommodation, because of the travel. 

Imagine you work in sales and have a client meeting in another city. You leave early in the morning and return late at night. During this time, you buy lunch at a café and dinner at a restaurant because you can’t go home to eat.  

You can claim these meal expenses as part of HMRC’s subsistence allowance, as long as they’re reasonable and meet the set guidelines. 

Is meal allowance taxable in the UK? 

No, meal allowances aren’t taxable in the UK. This has been the case since 1998, which means businesses can deduct these costs from their taxable income—potentially leading to lower tax payments. 

Are there scenarios where HMRC meal allowances can’t be deducted?

Yes, meal allowances can’t be deducted if:

• The expenses aren’t directly related to business activities. 
• No actual meal or drink is bought. 
• The meals are included as part of a training course, conference, or similar. 
• The expenses are deemed excessive or lavish. 
• The meals aren’t documented, or receipts are unavailable. 

The HMRC meal allowance rates for 2025

Here are the HMRC meal allowance rates for work-related travel within the UK: 

You can claim up to £25 in total for meals over a 24-hour period. This covers all meals, with a breakdown of £5 for breakfast, £5 for lunch, and £15 for dinner.

For example: if you’re on a work trip and spend £4 on breakfast, £5 on lunch, and £12 on dinner, you’d still be within the £25 daily limit, since dinner can go up to £15. 

What about overnight stays?

If you’re required to stay overnight for business purposes (within the UK), you can claim up to £25.00 to cover incidental expenses. This could include costs such as parking fees at the accommodation, or Wi-Fi charges for personal use. 

International meal allowance rates for 2025 

If you’re travelling outside of the UK for work HMRC has a full list of recommended allowance rates by country. 

Here are a few examples of daily meal allowances in different countries, listed in their local currencies: 

Hong Kong  

Singapore 

France (Paris) 

Spain (Madrid) 

USA (New York) 

How to report meal allowance to HMRC 

The process for reporting meal allowances to HMRC is the same as how you would report your other business expenses.  

At the end of the tax year, you’ll complete a P11D form for each employee who received meal reimbursements. This form details all the expenses that were paid to your employees.  

Additionally, you might need a P11D(b) form to summarise the total expenses and work out any Class 1A National Insurance contributions due. 

You can find a complete guide to reporting expenses and benefits on the HMRC website. 

Also, keep in mind that starting from April 2026, all benefits in kind (including meal allowances) will need to be reported and taxed directly through payroll. 

What happens if you go over HMRC meal allowance rates? 

Let’s look at a real-world example to make it easier to understand. 

 Imagine Sarah, who works for a tech company, and she’s travelling for work in the UK.  

 Her company follows the HMRC meal allowance rates for 2025 (which are £25 per day). On her trip, Sarah spends £35 on a meal—so it’s over the HMRC’s standard allowance by £10.

The company has two options in this situation: 

1. Stick to the £25 HMRC rate: if the company chooses this option, they’ll only reimburse Sarah £25 for her meal. That means Sarah will have to cover the £10 difference herself. This is the simpler approach, as there’s no need for the company to worry about any additional tax or national insurance implications.
    
2. Reimburse the full £35: if the company wants to reimburse Sarah the full £35 (the actual cost of the meal), that’s where things get more complicated. The company would have to make sure they’ve agreed on a higher, bespoke scale rate with HMRC. If they haven’t done this, then the £10 excess over the £25 is considered taxable income, and it would be subject to tax and national insurance.  

Want to keep all your expenses, including meal allowances, in one place? 

Whether you follow HMRC’s meal allowance rates or set your own limits for your employees, with Capture Expense you can easily submit, track, and manage all your expenses. Book a demo today to see just how easy it is. 

Imagine this; you’re a project manager heading to Edinburgh for an important business meeting. You’ve booked a train, lined up your hotel stay, and are preparing to grab meals on the go.  

These are all necessary expenses for your trip. But did you know that in the UK, you might be able to claim these costs back under what’s called a “subsistence allowance”?  

Whether you’re footing the bill yourself or your company is reimbursing you, it’s important to understand what qualifies as a legitimate business expense and how to claim it properly. 

Let’s get you ready for your next business trip by breaking down the key things you need to know about subsistence allowance in the UK. From what’s included to what’s not, and how to report a claim, we’ve got you covered—so you can focus on your work without worrying about out-of-pocket expenses. 

What is a subsistence allowance in the UK?

Subsistence allowance in the UK refers to expenses that employees can claim for costs incurred while traveling for work, such as meals, accommodation, and travel.  

HM Revenue and Customs (HMRC) allows these claims to cover necessary, business-related expenses, provided they meet specific guidelines and are not part of the employee’s regular, everyday costs. 

When can you claim subsistence allowance in the UK?

Let’s stick with the same example as before. As a project manager, your job involves travelling to meet clients across the UK.

One day, you have a meeting scheduled in Manchester, (your usual office is in Birmingham). To make it to your meeting on time, you catch an early train, grab breakfast on the go, and then later buy lunch while you’re in Manchester before heading back.

Now, can you claim these food expenses as a subsistence allowance? Yes, in this scenario, you likely can!

Here’s why:

1. The expense is necessary for your work duties: travelling to Manchester is part of your job responsibilities, so any reasonable costs incurred while doing this are necessary for work.
    
2. It’s an additional cost: if you hadn’t been travelling for work, you wouldn’t have had to spend extra money on breakfast and lunch in a different city. These are costs over and above your usual daily expenses.
    
3. You have receipts: always keep your receipts. Whether it’s a coffee shop receipt for breakfast or a restaurant bill for lunch, they’re essential to verify your claim.
    
4. You’re away from your usual place of work: since you’re not working from your Birmingham office and had to travel to Manchester, these expenses fall under the criteria of being away from your normal workplace.

It’s important to note that the costs you claim must be reasonable. For instance, a modest lunch in Manchester would be acceptable, but a lavish dinner at a high-end restaurant might raise eyebrows with HMRC.

Are there any exceptions? 

Yes. Here are some examples of situations where you might be exempt from claiming a subsistence allowance in the UK:

• When your employer provides meals (during the trip) 
• When the trip is for personal reasons (even if there’s a minor business component) 
• When the expenses are excessive 

The subsistence allowance rates in the UK 

Here are HMRC’s daily subsistence allowance rates in the UK for 2025:  

Meal subsistence rates in the UK

Accommodation rates in the UK

What about mileage rates? 

While your employees can’t claim back the actual hours they spend driving for work, they can claim mileage allowance to cover the costs of using their own vehicle. HMRC’s mileage allowance rates are designed to compensate for fuel, wear and tear, and other expenses, helping employees offset the costs of business travel.

Here are the approved mileage rates for 2025: 

The subsistence allowance rates outside the UK

If you’re travelling abroad for work, HMRC provides subsistence rates in local currencies for different countries and cities. 

Here are some of the most popular destinations in 2025: 

How to report subsistence allowance spending to HMRC 

Reporting subsistence allowance to HMRC is fairly straightforward and follows the same process as reporting other work-related expenses.  

At the end of the tax year, you need to complete a P11D form for each employee who received reimbursements for expenses (like meal allowances). Additionally, a P11D(b) form may be required to summarise the total expenses and calculate any necessary Class 1A National Insurance contributions. 

It’s also worth noting that from April 2026, all benefits in kind (BIK)—except for loans and living accommodation—must be reported and taxed through payroll. Which means that you’ll no longer be able to process BIKs through P11Ds.  

To make sure everything runs smoothly, you should have a clear process in place for collecting, verifying, and recording your expenses.  

Say hello to Capture Expense 

Want to keep all your expenses, including subsistence allowance in the UK, organised and in one place?  

Book a demo with Capture Expense today and see how easy it is to submit, track, and manage your expenses—saving you time and keeping you compliant with HMRC.