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Employee Subsistence Allowances

Published on 13/07/15

Employers may reimburse employees for business expenses incurred without deducting PAYE from the payments made in two situations:

(a) Where the payments are made based on vouched receipts provided by the employee; or

(b) Where flat rate allowances are paid which do not exceed the rates paid to Civil Servants or which are paid in accordance with a scheme which is approved by Revenue.  Where Civil Service rates are used no prior Revenue approval is required.

Following recent changes agreed in rates of subsistence allowances payable to Civil Servants and changes to the distance requirements which apply in order for allowances to be paid to Civil Servants, Revenue has updated Leaflet IT 54 – Employees’ Subsistence Expenses.

The changes which apply from 1 July 2015 are as follows:

• The rate of allowance payable will no longer depend on the level of salary of the employee.  A single rate will apply regardless of the level of salary.

• All rates of allowances, other than the day allowance payable where the period of absence is 10 hours or more, have been increased.

• The overnight allowance will only be payable where the employee is at least 100 km away from the employee’s home and place of work.  Previously there was no minimum distance requirement to be satisfied in order for the allowance to be payable.

• The day allowance is only payable where the employee is at least 8 km away from the employee’s home or normal place of work.  Previously the distance required was 5 km.

The new subsistence rates which apply from 1 July 2015 are as follows:

Overnight Allowances
Normal
Rate
Reduced
Rate
Detention
Rate
€125.00 €112.50 €62.50

Day Allowances
10 Hours or More 5 - 10 Hours
€33.61 €14.01

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