One of the most effective ways to optimise your financial health is to take full advantage of tax-deductible expenses. These deductions can significantly reduce your taxable income, thereby lowering your overall tax bill.  

We know that determining what qualifies as a “deductible expense” can be tricky. That’s why we’ve outlined what Revenue considers a legitimate expense, common examples of tax-deductible expenses in Ireland, and how to claim a deduction for expenses incurred. 

So, if you run a business in Ireland and want to save money and reduce your tax liability, you’ve come to the right place!

What are tax-deductible expenses in Ireland?

Tax-deductible expenses are costs that can be deducted (hence the name) from your income to reduce the amount of tax you owe.  

You need to make sure that any and all tax-deductible expenses you claim are used for business purposes, and not for personal use.

It’s also worth noting that in order to claim these deductions, you must keep accurate and up-to-date documentation (such as receipts).

What about expenses that are used in both a business and personal capacity?

When you spend money on something that serves both business and personal purposes, you can claim a deduction for part of the expense. 

For example: if you use your mobile phone for work and for home, you can claim a deduction for the business portion of your phone bill. Let’s say 60% of your phone usage is for business, you can therefore deduct 60% of the total phone bill as a business expense. 

Common examples of tax-deductible expenses in Ireland

• Travel and subsistence: costs related to business travel such as transport fares, accommodation, and meals, are deductible. This means if you travel for work, you can claim back these expenses.

• Employees’ salaries: wages and salaries paid to your employees can be deducted. This includes regular pay, bonuses, and pensions.

• Rent and office maintenance: money spent on renting your office space and maintaining it, like cleaning or repairs, is deductible. Utilities such as electricity, water, and heating for your office are also included. 

• Office equipment: costs for purchasing office supplies and equipment, such as computers, cabinets, and desks, can be claimed as expenses.

• Marketing and PR: expenses for promoting your business, like advertising, marketing campaigns, and PR activities, are also deductible.

• Training and education: costs for courses, workshops, or seminars that improve your business skills or those of your employees are deductible.

• Professional fees: fees paid to accountants, solicitors, or consultants for business-related services are also eligible.

• Phone bills: costs for business-related phone calls and mobile plans are deductible. As mentioned above, you need to make sure that the expense is solely for business purposes (or appropriately apportioned if used for both personal and business needs). 

How to claim expenses through Revenue

To claim tax-deductible expenses in Ireland you need to follow these steps:

1. Log in to Revenue Online Service: access the Revenue Online Service (ROS) using your login details.
    
2. Select the form: choose the relevant form for your business—Form 11 for self-assessed individuals or Form CT1 for companies.
    
3. Enter your expenses: fill in the sections related to expenses on the form. You’ll need to provide details and amounts for each expense you’re claiming.
    
4. Submit the form: review your entries and submit the form online.
    

Remember to keep all your records and receipts in case Revenue requests them later. 

Keep track of all your tax-deductible expenses in Ireland

Stay on top of your spend and keep all your tax-deductible expenses in one place.  
 
Never miss a deduction and reduce your tax liability with Capture Expense. Book a demo today to see how we can help.   

Understanding the difference between deductible and non-deductible expenses can significantly impact your financial planning and tax liability.

By knowing what you can and can’t deduct, and by keeping meticulous records, you can take full advantage of the tax benefits available to you.  

With that in mind, let’s break down deductible and non-deductible expenses, provide examples of each, and share our top tips on how to keep track of them.

What are deductible expenses?

Tax-deductible expenses are costs you incur while running your business that you can subtract from your total income, lowering the amount of tax you need to pay. These expenses are split into two main types:

1. Direct expenses: costs directly tied to making money, like buying materials or paying employees.
    
2. Indirect expenses: costs necessary to run your business but not directly tied to income, like office rent and utility bills.

You can claim both types of expenses on your tax return. However, there are limits on how much you can claim for indirect expenses. For instance, you can only claim part of your office rent based on how much of the office is used for business. 

Common examples of deductible expenses

Here are 8 of the most common deductible expenses in the UK: 

1. Office supplies

This includes things like paper, pens, printer ink, and postage. If you pay for software on a subscription or use it for less than two years, you can also claim these costs.

2. Phone and internet bills

You can claim the portion of your phone and internet bills used for business. Make sure to separate business use from personal use.

3. Business premises

Costs like rent, business rates, electricity, water, and building insurance for your business location can be claimed. However, you can’t claim the cost of buying the property.

4. Transport and travel

You can claim expenses for fuel, parking, train, or bus fares if the travel is for business purposes. This doesn’t include commuting to your regular workplace.

5. Legal and professional costs

Fees for accountants, financial advisers, solicitors, and surveyors are deductible if they are for business purposes. 

6. Raw materials and stock

If your business sells products, you can claim the costs of raw materials or stock.

7. Marketing expenses

Costs for advertising, maintaining a website, social media ads, and traditional marketing like print ads can be claimed.

8. Staff costs

Salaries, wages, bonuses, pensions, and even subcontractor costs can be claimed as allowable expenses. However, payments to partners in a business partnership aren’t eligible.

What are non-deductible expenses?

Non-deductible expenses are costs that you can’t subtract from your income to reduce your taxes, even if they are related to your business.  
 
HM Revenue and Customs (HMRC) does not allow these expenses to be used as deductions. This means you must pay taxes on these costs because they don’t lower your taxable income. 

Common examples of non-deductible expenses

Let’s look at 6 examples of non-deductible expenses in the UK: 

1. Travel from home to your office

You can’t claim the cost of commuting from your home to your rented office or workspace. 

2. Everyday lunches

Daily lunch expenses can’t be claimed against employment taxes unless you’re away from your normal place of work. 

3. Personal expenses

Any costs that aren’t directly related to your business can’t be claimed.

4. Fines and penalties

Any fines or penalties incurred, such as self-assessment penalties, parking fines, or VAT penalties, are disallowable expenses.

5. Unpaid work

You can’t claim the value of work done by yourself or your family if no one got paid for it.

6. Residential accommodation

Costs for your home can’t be claimed unless they’re absolutely necessary for your business. 

Tips for tracking your expenses

Properly tracking your expenses throughout the year can make tax time much easier and make sure you don’t miss out on any potential deductions.

Here, we’ve outlined a few of our top tips for tracking expenses:

• Keep receipts and invoices: save all receipts and invoices for your deductible expenses. This documentation is crucial if you need to prove your deductions to tax authorities.

• Use a dedicated bank account: for business expenses, consider using a separate bank account or credit card. This can simplify tracking and prevent mixing personal and business expenses.

• Maintain a detailed log: for expenses like mileage or home office use, keep a detailed log with dates, amounts, and purposes. There are various expense management apps like Capture Expense that can help with this.

• Consult a tax professional: tax laws can be complex and change frequently. Consulting a tax professional can help make sure you are claiming all possible deductions and staying compliant with HMRC. 

Track all your expenses in granular detail

Our expense reporting software offers unmatched flexibility in tracking both your deductible and non-deductible expenses, ensuring you always have full spend visibility and stay compliant with HMRC. Book a demo today to see how we can help.  

What are Class 1A NICs?

When you take that first step into the world of UK taxes and National Insurance contributions (NICs), you might come across various terms that can seem confusing at first.  
 
One such term is “Class 1A NICs”. Understanding what these are, when they apply, and how they impact you or your business is crucial for maintaining compliance with HMRC.  
 
But don’t worry, we’ve done all the heavy lifting for you. Here’s what you need to know about Class 1A NICs. 

What are National Insurance Contributions (NICs)?

Let’s take a step back for a second. For those who aren’t entirely familiar with what NICs are: 
 
National Insurance contributions are payments made by both employees and employers in the UK to fund certain state benefits, including the state pension and various social security benefits. NICs are similar to social security contributions in other countries.

What are the different National Insurance (NI) classes?

Let’s take a look at the various classes of National Insurance for employees and employers: 

• Class 1 NI: applies to employees who earn more than £242 per week and are under the state pension age. It’s automatically deducted by the employer.  
• Class 1A or 1B: are paid by employers on their employee’s expenses and benefits.  
• Class 3: are voluntary contributions an individual can make to make sure their NI record has no gaps.  
• Class 4 NI: contributions apply to self-employed people earning profits of more than £12,570 in a year.  

 It’s worth noting that self-employed professionals no longer have to pay Class 2 NI contributions, but they can still make voluntary contributions.  

What are Class 1A NICs?

Class 1A NICs are a specific type of National Insurance contribution paid by you (the employer). They’re due on most taxable benefits provided to your employees. These benefits are often referred to as benefits in kind and can include things like:

• Company cars 
• Private medical insurance 
• Non-cash vouchers 
• Beneficial loans 

You must pay Class 1A NICs for

• Directors and certain senior employees.  
• Regular employees.  
• Family members or household members of the above, who also receive benefits. 

The conditions for Class 1A NICs to apply 

• The benefit must not already incur a Class 1 NICs liability.  
• The benefit must be related to employment.  
• The benefit must be subject to Income Tax.  

It’s also worth mentioning that there’s an exemption for “smaller” benefits, such as taking an employee out for lunch, as long as the cost is £50 or less.

Under what circumstances are you exempt from paying Class 1A NICs?

You are exempt from paying Class 1A National Insurance contributions if: 

• Your employee receives a benefit in kind that’s non-taxable (such as employer-provided pension schemes) 
• The recipient does not qualify as an “employed earner.” 
• The benefit is covered by a PAYE settlement agreement. 

When are Class 1A NICs due?

Class 1A NICs are due once a year, after the end of the tax year. You must pay these contributions by the 22nd of July (or 19th of July if paying by post). 

It’s also worth noting that from April 2026, the payrolling of BIKs will become mandatory – removing the need for you to complete annual P11D forms. For more information on how this will impact you read Payrolling of BIKs to Become Mandatory from 2026: What you Need to Know 

How are Class 1A NICs calculated?

The amount of Class 1A NICs you need to pay is calculated based on the value of the taxable benefits provided to your employees.  
 
For the tax year 2023/2024, the rate is 13.8%. For example, if the total value of the benefits you provided is £10,000, your Class 1A NICs would be £1,380 (13.8% of £10,000). 

Reporting and paying Class 1A NICs

To report and pay Class 1A NICs, you must:

1. Calculate the total value of all taxable benefits provided to your employees during the tax year. 
2. Complete a P11D(b) form: this form summarises the amount of Class 1A NICs due. It must be submitted to HMRC by 6th July following the end of the tax year. 
3. Pay the Class 1A NICs: make sure the payment is made by the deadlines mentioned above. 

Can your payroll software handle taxable benefits?

If you’re looking to quickly and efficiently manage all your employees’ taxable benefits book a personalised demo today with our sister company Cintra.  

What is a Benefit in Kind and How Does it Work? 

If you employ people in the UK, there are a few ways you can reward them in addition to paying wages or a salary. One of the most flexible options is to offer benefits in kind (BIKs). 

This guide aims to clarify what BIKs are, their purpose, how they are taxed, and the reporting requirements.

What is a benefit in kind?

A benefit in kind is a non-cash benefit provided to employees that has monetary value. These perks are offered in addition to, or in place of, traditional salary payments.

Examples of benefits in kind

The most common examples of a taxable BIKs include the following:

• Private healthcare 
• Travel expenses 
• Childcare vouchers 
• Company cars 
• Gym membership 
• Cycle to work schemes 
• Accommodation expenses 

What is the purpose of offering benefits in kind?

In simple terms, you’re offering your employees valuable perks in addition to their salary.

There are several reasons why you might choose to include certain BIKs in your overall compensation strategy, such as: 

• Attraction and retention: competitive benefits can attract top talent and help retain existing employees.
• Employee satisfaction: perks can enhance job satisfaction and morale.
• Tax efficiency: some BIKs can be more tax-efficient than equivalent salary increases.
• Employee wellbeing: benefits like flexible working arrangements or organised yoga classes can improve employees’ work-life balance, contributing to their overall well-being.

Paying Class 1a NICs on your benefits in kind

As an employer, you are responsible for paying Class 1A National Insurance Contributions (NICs) on most benefits you provide to your employees.  

These contributions are covered by you and are not deducted from your employees’ salaries. 

You must pay Class 1A NICs for:
 

• Directors and certain senior employees.  
• Regular employees.  
• Family members or household members of the above, who also receive benefits.
   

And certain conditions must be met for Class 1A NICs to apply:
 

• The benefit must not already incur a Class 1 NICs liability.  
• The benefit must be related to employment.  
• The benefit must be subject to Income Tax. 
   

It’s also worth noting that there is an exemption when it comes to “smaller” benefits (costing £50 or less) for things like taking an employee out to celebrate their birthday. 

What benefits are subject to Class 1A NICs?

Common taxable benefits that attract Class 1A National Insurance include:
 

• Private medical insurance.   
• Living accommodation.  
• Company cars.   
• Termination awards exceeding the £30,000 threshold that have not already been subject to Class 1 NICs deductions.  
• Beneficial loans.  
   

When don’t you have to pay Class 1A NICs? 

You won’t have to pay Class 1A NICs if:  

• Your employee receives a non-taxable benefit in kind. 
• The beneficiary does not meet the criteria for “employed earner”. 
• The benefit is included in a PAYE settlement agreement. 

How to report benefits in kind

First, let’s take a look at P11D and P11D(b) forms. We’ll briefly go over what they are, why you need them and what’s their main difference. 

What’s a P11D?

A P11D form is used to report BIKs (such as company cars or health insurance) and expenses provided to your employees on top of their regular wages.  
 
P11Ds are essential as they ensure these benefits are properly recorded and taxed, fulfilling legal obligations and ensuring fair tax contributions. 

What’s a P11D(b)?

A P11D(b) form is a declaration that specifies the total Class 1A National Insurance contributions owed on all benefits you provide to your employees. 

What’s the difference between a P11D and a P11D(b)?

While both forms involve reporting benefits and expenses, the P11D focuses on detailing individual benefits provided to your employees, while the P11D(b) declares your overall liability for National Insurance Contributions (NICs) on those benefits.  

 

To ensure compliance with HMRC, you must report benefits in kind annually. Here’s your step-by-step guide outlining the process:
 

When submitting P11Ds:

1. Identify the benefits: determine all BIKs provided to employees during the tax year. 
2. Calculate the value: assess the taxable value of each BIK. 
3. Complete the P11D Forms: Fill out a P11D form for each employee receiving BIKs, detailing each benefit and its value. 
4. Distribute P11Ds: provide copies to employees by 6 July following the end of the tax year.
    

When submitting P11D(b)s:

1. Complete the P11D(b) form: this form summarises the total value of all BIKs provided to employees and calculates the Class 1A NICs due.
2. Submit to HMRC: ensure the P11D(b) is submitted to HMRC by 6 July following the end of the tax year.
3. Pay Class 1A NICs: payment for the Class 1A NICs must be made by 22 July (19 July if paying by cheque).
    

Payrolling benefits in kind: current status and April 2026 changes

As it stands, when it comes to benefits in kind, you have two choices:

1. You can stick with the traditional approach of submitting P11D forms to report employee benefits for tax purposes (if they aren’t processed via payroll). 
2. You can opt to register for payrolling benefits, which means you process employee benefits as part of your usual payroll processing, allowing for the real-time taxation of benefits through PAYE. 

What’s going to change from April 2026?

Starting from April 2026, all BIKs that you provide (except for loans and living accommodation) will have to be reported and taxed through payroll. You must ensure that your current payroll process will be able to handle this new development and take actions to either upgrade or replace your software if necessary. 

Are P11Ds giving you a headache? 

If you’re looking to quickly and efficiently manage all your employees’ taxable benefits book a personalised demo today with our sister company Cintra.  

 

How to Register for Payrolling Benefits 

On January 16, 2024, the British government announced a significant change: starting from April 2026, the payrolling of benefits-in-kind will become mandatory. This initiative aims to reduce administrative burdens by fully digitalising the reporting of all employment benefits.

If you haven’t yet embraced payrolling benefits, now is the perfect time to get acquainted with the process. It’s essential to understand the pros and cons, as well as how this shift might impact your business’s finances.

Our blog provides comprehensive guidance on how to register for payrolling benefits: from identifying which types of benefits you can payroll to understanding how to report them and make payments to HMRC.

We’ve got all the information you need to navigate this transition smoothly.

Let’s get started. 

What are payrolling benefits?

Payrolling benefits is a method where the taxable value of benefits you provide to your employees is included in their PAYE calculation. This means that income tax on these benefits is paid at source and spread out over the tax year.

What benefits can you payroll?

These are some of the benefits you can payroll:

• Health insurance 

• Gym memberships 

• Company cars 

• Childcare vouchers or subsidies 

• Mobile phone allowances 

• Private medical insurance 

• Travel expenses 

• Meals provided by the employer

What benefits can you not payroll?

• Living accommodation 

• Loans 

How to register for payrolling benefits 

Registering for payrolling benefits is pretty simple. Here’s what you need to do: 

First, you need to register with HMRC via the payrolling employees taxable benefits and expenses online service, (this must be done before the start of the tax year). 

When registering, you’ll select the benefits to include in payroll. It’s important to note that all employees receiving benefits will have their tax codes adjusted unless you opt out specific employees using the online service.

Keep in mind, this option is available until April 2026. 

And if you miss the deadline to register for payrolling benefits

If you don’t register for payrolling benefits by April 5th, you’ll have to wait until the next tax year to include benefits in your payroll. 

How to notify your employees 

Once you’ve registered to payroll benefits, you need to inform your employees about the process and its impact on them.  
 
You need to notify them by 1 June after the end of each tax year via email, letter, or payslip.  
 
Your notification should also assure them that they won’t be taxed twice because you registered their benefits with HMRC before the new tax year. 

What additional information should you include in your written notification?

To ensure all employees are well informed, your written notification should include:

• Detailed information about all payrolled benefits, including descriptions, values, and cash equivalents. 

• Confirmation of PAYE tax deductions. 

• Amounts payrolled for optional remuneration. 

• Details of any benefits not payrolled.

This will provide transparency and help your employees understand their taxable benefits and financial situation better. 

What else do your employees need to know?

You need to tell your employees that during the first year, their tax codes will be modified to exclude benefits in kind adjustments. 
 
Each month, the adjusted amount will be processed through payroll, and they will be taxed accordingly. 
 
At the end of the year, you will provide them with a statement detailing the taxable benefits they received throughout the year and the nature of those benefits.

What about if you have new employees

For new employees with payrolled benefits, you need to explain the taxation process.

Tell them that:

• Their tax code may be adjusted for benefits from previous jobs, but new benefits won’t be included. 

• Any underpaid tax through their current tax code will still be collected. 

How to cancel your registration

Your registration will remain active unless you choose to cancel it.

To do so, you must notify HMRC before the start of the tax year using the online service for payrolling employees’ taxable benefits and expenses.

If the tax year has already started when you change your mind, you must wait until the end of the tax year before you stop payrolling. 

FAQs

Where can I access more information about the latest developments in mandatory payrolling?

To stay updated on mandatory payrolling developments and requirements, you can read the Employer Bulletins from HMRC.  
 
These bulletins provide important updates, guidance, and changes related to payrolling benefits, keeping you informed about any new developments or requirements. 

Is your current payroll process up to scratch?

If you are looking for a team of experienced payroll experts that can quickly and efficiently manage all your employees’ taxable benefits. Book a personalised demo with our sister-company Cintra.

A Guide to Expense Compliance in Ireland 

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 2024:

Rate	Type	Goods and services
23%	Standard	All other taxable goods and services
13.5%	Reduced	Some foods, pharmaceutical products, children’s car seats, energy products and supplies, supply and development of immovable goods.
9%	Reduced	Some foods, newspapers, admission to cultural events, admission to sports facilities, hairdressing.
4.8%	Reduced	Livestock and agricultural supplies.
0%	Zero	Some foods, animal feed, medical equipment, children’s products.

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 2024, effective from 1st September 2023. 

Civil service motoring and bicycle rates

Cars (rate per kilometre)

 

Motor travel rates (from 1 September 2022)

Distance band	Engine capacity up to 1200cc	Engine capacity 1201cc – 1500cc	Engine capacity 1501cc and over
Up to 1,500 km (Band 1)	41.80 cent	43.40 cent	51.82 cent
1,501 – 5,500 km (Band 2)	72.64 cent	79.18 cent	90.63 cent
5,501 – 25,000 km (Band 3)	31.78 cent	31.79 cent	39.22 cent
25,001 km and over (Band 4)	20.56 cent	23.85 cent	25.87 cent

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

 

Reduced motor travel rates per kilometre

Engine Capacity up to 1200cc	Engine Capacity 1201cc to 1500cc	Engine Capacity 1501cc and over
21.23 cent	23.80 cent	25.96 cent

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) 

Distance	Engine capacity up to 150cc	Engine capacity 151cc – 250 cc	Engine capacity 251 cc – 600 cc	Engine capacity 601cc and over
Up to 6,437 km	14.48 cent	20.10 cent	23.72 cent	28.59 cent
6,438 km and over	9.37 cent	13.31 cent	15.29 cent	17.60 cent

Bicycles

Bicycle rates (from 1 February 2007

Rate per km

8 cent

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 2024

Rates for assignments within the State

Overnight allowance

Domestic overnight subsistence rates (from 14 December 2023) 

Rate category	Rate
Normal rate	€195.00
Reduced rate	€175.50
Detention rate	€97.50

  

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 14 December 2023) 

Period of assignment	Rate
Ten hours or more	€42.99
Between five and ten hours	€17.92

 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 

Period of assignment abroad	% of normal overnight rate
First month	100%
Second and third month	75%
Fourth, fifth and sixth month	50%

 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. 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. 

An Overview of Payrolling Benefits in Kind 

In April 2016, HM Revenue and Customs (HMRC) implemented a significant change in the way benefits in kind (BIK) are managed for employers in the UK. This new system, aptly named “payrolling benefits in kind,” revolutionised the approach to reporting and taxing non-cash perks provided to employees. 

In early 2024, the British Government unveiled plans to make the payrolling of benefits in kind mandatory starting from April 2026. We’ll get into the details of this announcement later on.

So, if you provide non-cash benefits to your employees and want an overview of payrolling benefits in kind, you’ve come to the right place. 

 What are benefits in kind?

Benefits in kind encompass a wide range of perks that you may offer to your employees, including company cars, private healthcare, gym memberships, and even the use of a mobile phone.  
 
Essentially, if you provide something of value to your staff that isn’t included in their salary, it likely falls into this category.  
 
Some common examples of BIKs include company cars, private medical insurance, and gym memberships. 

What are your current options when it comes to BIKs? 

When it comes to benefits in kind you have a couple of options: 

1. You can continue using the traditional method of submitting P11D forms to report employee benefits for tax purposes, if they aren’t included in payroll (until April 2026). 
2. You can register for payrolling benefits. This allows you to handle employee benefits through your regular payroll process, enabling real-time taxation of benefits via PAYE. 

What are payrolling benefits?

Payrolling benefits in kind means including the estimated value of employee benefits directly in their regular payroll, instead of reporting them separately to HMRC on the annual P11D form.  
 
This simplifies tax deductions, as Income Tax contributions for the benefits are deducted along with regular taxes.

The benefits of payrolling benefits in kind 

Opting to payroll benefits in kind offers several advantages such as:

• Simplified admin: if your payroll software is capable of processing benefits in kind, you can say goodbye to the hassle of completing P11D forms and the associated deadlines.

• Improved accuracy: by reporting benefits in kind in real time, you minimise the risk of errors and discrepancies in your tax calculations.

• Enhancing the employee experience: payrolling benefits in kind allows you to provide your employees with a clear and transparent view of their total remuneration package. By integrating these benefits directly into the payroll, employees can easily see and understand the full value of their compensation. 

 What’s changing in 2026? 

From April 2026, all benefits in kind (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. 
 
You need to make sure that your payroll system can handle this change and upgrade or replace your software if need be. 

How to register for payrolling benefits? 

To register for payrolling benefits, use HMRC’s online service to manage your employees’ taxable benefits and expenses before the tax year begins. During registration, select the benefits you wish to integrate into payroll. Keep in mind that unless you use the online service to exclude specific employees, all benefiting employees will have their tax codes adjusted.

If you miss the 5th of April deadline to register for payrolling benefits, you’ll have to wait until the next tax year to include benefits in your payroll. 

The Government hasn’t set a deadline for compliance with the legislation change coming in April 2026. However, they have said more updates will be released throughout the year. 

What happens next?

You have a responsibility to communicate with your employees about the implications of payrolling benefits. This includes explaining how their pay will be adjusted, how tax deductions will be managed, and the impact on their tax codes.

Additionally, you must provide annual statements detailing the benefits received by each employee. 

Benefits that are not included in payrolling must continue to be reported using P11D forms as per current procedures. 

How to notify your employees

You must notify your employees by 1 June after the end of each tax year.

You can do this via:

• Email 
• Letter 
• Payslip 

What happens if you want to cancel your registration?

To cancel your registration for payrolling benefits, notify HMRC via their online service before the tax year begins. If you decide to cancel after the tax year has started, you’ll need to wait until the year-end to cease payrolling (until the law changes in April 2026). 

Where can I get extra information to help me prepare for April 2026? 

To keep abreast of mandatory payrolling updates and requirements, you can refer to HMRC’s Employer Bulletins.  
 
These bulletins offer crucial updates, guidance, and information on changes related to payrolling benefits, helping you remain informed about any new developments or requirements. 

Is your current payroll process up to scratch?

If you are looking for a team of experienced payroll experts that can quickly and efficiently manage all your employees’ taxable benefits. Book a personalised demo with our sister-company Cintra.

How Does Mileage Reimbursement Work? 

Many employees regularly find themselves on the move, whether it’s visiting clients, attending meetings, or simply commuting to different offices.  
 
With such mobility comes the inevitable cost of transportation, and for many, mileage reimbursement becomes a vital aspect of their employment benefits.  
 
But how does mileage reimbursement work in the UK, you may ask? Read on to find out.

What exactly is mileage reimbursement?

Mileage reimbursement is a way to pay back your employees for using their own cars for work. It covers things like fuel, maintenance, insurance, and general wear and tear. Basically, it’s a way to help with the costs they run up while driving for work.

How does mileage reimbursement work? 

In the UK, mileage reimbursement is often based on a predetermined rate per mile travelled. This rate is set by HM Revenue and Customs (HMRC), and it’s designed to cover the average cost of using a personal vehicle, including fuel, maintenance, and depreciation.
 

The HMRC-approved mileage rates for cars are as follows:

• 45 pence per mile for the first 10,000 miles in a tax year 

• 25 pence per mile for each additional mile over 10,000

For motorcycles, the rate is 24 pence per mile, and for bicycles, it’s 20 pence per mile.

These rates are subject to change, so it’s essential that you keep up with the latest guidance from HMRC.

How to calculate mileage reimbursement

To calculate mileage reimbursement, your employees need to multiply the number of miles travelled for work by the applicable rate per mile.  
 
For example, if your employee drives 100 miles for work in a given month, they would be entitled to £45 in reimbursement (100 miles x 0.45 pence). 

How to reimburse your employees

You can pay back employees either through your payroll system or via direct payments.

When using payroll, you incorporate the mileage reimbursement into the employee’s regular pay cycle, ensuring it is clearly itemised on their payslip.

Direct payments can be made outside of the payroll, typically via bank transfer or a company-issued cheque. 

Are there any tax implications?

Mileage reimbursement is typically tax-free, as it’s considered a reimbursement of expenses rather than income. However, there are exceptions, such as when the reimbursement exceeds the HMRC-approved rates or when an employee receives a cash allowance in lieu of reimbursement. In such cases, the excess amount may be subject to income tax and National Insurance contributions.

What responsibilities do you have?

You have a responsibility to ensure that your mileage reimbursement policies comply with HMRC regulations.  
 
This includes: 
 
– Using the approved mileage rates 
– Maintaining accurate records 
– Providing clear guidance to your employees.  
 
Failure to do so can result in penalties and legal liabilities. 

FAQs

Are all UK employees eligible for mileage reimbursement?

Not everyone is eligible for mileage reimbursement in the UK. Generally, you must meet the following criteria:

• You must be using your own vehicle for work-related travel. 

• Your employer must require you to travel for business purposes. 

• You must keep accurate records of your mileage, including the date, destination, and purpose of each trip.

Employees who are eligible for mileage reimbursement typically include sales representatives, delivery drivers, and those who travel between different work locations as part of their job. 

What do UK employees have to do to claim mileage reimbursement?

If you’re eligible for mileage reimbursement, you’ll need to keep detailed records of your business mileage. This includes maintaining a mileage log or using a mileage tracking app to record each journey you make for work purposes. Your mileage log should include the following information:

• Date of the journey 

• Starting location and destination 

• Purpose of the trip 

• Number of miles travelled

Once you’ve accumulated business mileage, you can submit a mileage claim to your employer. This typically involves completing a mileage expense form and attaching your mileage log as evidence. Your employer will then process your claim and reimburse you for the approved mileage. 

Accurate mileage claims guaranteed with Capture Expense

With the Capture Expense app, your team can raise, submit, and approve vehicle expenses anytime, anywhere, streamlining the way your organisation manages spend. Book your personalised demo now and never miscalculate mileage claims again! 

Company Car Fuel Benefit Charge 2024/25 

It doesn’t matter how big your company is or how many employees you have, if you provide company-owned vehicles for personal use, you must stay informed about car fuel benefits.

We will give you everything you need to know from what the car fuel benefit is, to the 2024/25 rates and how to report car fuel benefit to HMRC.

Fasten your seatbelts and let’s get started. 

First things first, what is a car fuel benefit?

To put is simply, the car fuel benefit is applicable to UK taxpayers who use their company car for personal use and don’t pay for the fuel themselves. 
 
It’s also worth noting that normal commuting is classed as personal use for company car fuel benefit purposes. 

What are the company cars and vans rates for 2024/25? 

The government announced that it will maintain the van benefit charge as well as the car and van fuel benefit charges at the current level for 2024/25.   

 

Charge	Rate
Van benefit charge	£3,960
Van fuel benefit charge	£757
Car fuel benefit charge multiplier	£27,800

 

What are HMRC’s advisory fuel rates for company cars in 2024?

These are the fuel rates set by HMRC for company cars, starting from 1 March 2024:

Diesel 

Engine size	Diesel — rate per mile
Up to 1600cc	12p
Between 1601cc and 2000cc	14p
Over 2000cc	19p

 Petrol 

Engine size	Petrol — rate per mile	LPG — rate per mile
Up to 1400cc	13p	11p
Between 1401cc and 2000cc	15p	13p
Over 2000cc	24p	21p

 Electric

Electric — rate per mile

9p

 Hybrid

For advisory fuel rates, hybrid cars are considered either petrol or diesel vehicles. 

Do HMRC regularly update their fuel rates? 

HMRC updates the advisory fuel rates quarterly to account for fluctuations in fuel costs. These updates occur on the following dates:

• 1 March 
• 1 June 
• 1 September 
• 1 December 

How to report car fuel benefits to HMRC 

Your reporting options

1. P11D Form:

Submit this form at the end of the tax year, along with other benefits.

2. Payroll:

Process the car fuel benefit through payroll, deducting tax in real time.

Important update

From 2026, payrolling benefits will become mandatory.  
 
This means that if you are currently using P11D forms you should consider switching to payroll processing now to stay ahead of the change. 

Tax and Class 1A National Insurance Contributions on car fuel benefits

Your people must pay tax on any car fuel benefit they receive. The taxable value is calculated using HMRC’s appropriate percentage, which considers the car’s CO2 emissions. Cars with lower emissions are assigned a lower percentage, whereas those with higher emissions receive a higher percentage, varying from 2% to 37%. 
 
Your company also has contributions to make. You’ll need to pay Class 1A National Insurance Contributions on the value of the car fuel benefit provided to your people (currently at a rate of 13.8%). 

What method is used to calculate the fuel rates? 

Here’s a brief explanation of how HMRC calculates their fuel rates: 

1. Mean MPG calculation: HMRC starts by determining the mean miles per gallon (MPG) based on manufacturers’ data. This figure is adjusted to reflect the distribution of specific models sold to businesses.
    
2. Applied MPG adjustment: the mean MPG is then reduced by 15% to account for real-world driving conditions, recognising that actual fuel efficiency is often lower.
    
3. Fuel price data: HMRC sources the petrol prices from the Department for Business, Energy, and Industrial Strategy, while LPG prices are taken from the Automobile Association website.
    
4. Rate calculation: using the adjusted MPG and current fuel prices, HMRC calculates the advisory fuel rates.
    

By doing all this, HMRC ensures that the advisory fuel rates are accurate and reflective of real driving conditions and fuel costs. Here is the calculation breakdown: 

Diesel 

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1600	56.7	149.4p	679.0p	12.0p	12p
Between 1601 and 2000	48.0	149.4p	679.0p	14.2p	14p
Over 2000	36.3	149.4p	679.0p	18.7p	19p

 Petrol 

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	49.5	140.6p	639.0p	12.9p	13p
Between 1401 and 2000	42.1	140.6p	639.0p	15.2p	15p
Over 2000	26.7	140.6p	639.0p	24.0p	24p

 LPG 

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	39.6	96.5p	438.7p	11.1p	11p
Between 1401 and 2000	33.7	96.5p	438.7p	13p	13p
Over 2000	21.3	96.5p	438.7p	20.6p	21p

 FAQs

Is it worth taking a company car?

Whether an employee should use a company car hinges on how much they drive and spend on fuel. If they rack up a lot of miles and their fuel costs exceed the car’s fuel benefit, it’s a good deal. However, if their fuel expenses are low, they could actually end up paying more with the benefit. 

Choose Capture Expense and manage your company cars and fuel with ease 

Want to see first-hand how our platform streamlines mileage tracking, calculations, and reimbursements, all while ensuring compliance with HMRC’s advisory fuel rates. Book a personalised demo today. 

We know why you’re here. You want the civil service mileage rates in Ireland for 2024. So, without further ado.  

The civil service mileage rates for 2024

Here are the new civil service rates for mileage allowance in Ireland for 2024, 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) 

Distance band	Engine capacity up to 1200cc	Engine capacity 1201cc – 1500cc	Engine capacity 1501cc and over
Up to 1,500 km (Band 1)	41.80 cent	43.40 cent	51.82 cent
1,501 – 5,500 km (Band 2)	72.64 cent	79.18 cent	90.63 cent
5,501 – 25,000 km (Band 3)	31.78 cent	31.79 cent	39.22 cent
25,001 km and over (Band 4)	20.56 cent	23.85 cent	25.87 cent

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

Reduced motor travel rates per kilometre 

Engine Capacity up to 1200cc	Engine Capacity 1201cc to 1500cc	Engine Capacity 1501cc and over
21.23 cent	23.80 cent	25.96 cent

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)  

Distance	Engine capacity up to 150cc	Engine capacity 151cc – 250 cc	Engine capacity 251 cc – 600 cc	Engine capacity 601cc and over
Up to 6,437 km	14.48 cent	20.10 cent	23.72 cent	28.59 cent
6,438 km and over	9.37 cent	13.31 cent	15.29 cent	17.60 cent

Bicycles

Bicycle rates (from 1 February 2007) 

Rate per km

8 cent

 

Staying compliant

Now, onto the nitty gritty.

In this guide, we’ll tackle the intricacies of car mileage allowance in Ireland for 2024. 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.