Employment tax update: Travel and subsistence

New Civil Service Subsistence Rates – Effective 29 January 2025

Overnight Rates

Vouched Accommodation (VA) Dublin only

Day allowance

Civil Service Mileage Rates

The Civil Service mileage rates remain unchanged and are as follows:

Some points to note for employers when reimbursing travel and subsistence expenses:

• In general, employers may reimburse employees for business-related travel and subsistence expenses without deduction of payroll taxes, provided:
  • The travel is wholly and exclusively for business purposes.
  • The employee is on business travel away from their normal place of work.
  • The reimbursement is in line with the Civil Service rates, shown above.
• Travel between an employee’s home and their normal place of work is considered private travel and is not eligible for tax-free reimbursement.
• When an employee carries out the duties of his employment, while temporarily away from his normal place of work, an employer may reimburse the subsistence expenses (meals and accommodation) incurred by the employee tax-free by either:

1. Paying the employee a flat rate up to, but not exceeding, the prevailing Civil Service subsistence rates, or
2. Reimbursing the employee for the actual costs incurred, or
3. Paying the employee using any other schedule of rates (however, this is subject to receiving advance Revenue approval).

If the subsistence rate paid by the employer exceeds the prevailing Civil Service subsistence rate, the excess amount is a taxable payment.

Enhanced Reporting Requirements (ERR)

Since 1 January 2024, employers must follow the real-time reporting requirements in relation to the reimbursement of tax-free travel and subsistence expenses.

Failure to comply with any of the rules above could result in interest and penalties for employers in addition to the underpayment of PAYE, USC and PRSI.

If you have any questions in relation to the above, or if you would like to discuss this topic further, please contact a member of the Forvis Mazars employment tax team below.