Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Claiming PAYE back for travelling for work

  • 08-01-2006 12:59am
    #1
    denhamd2
    Closed Accounts Posts: 122 ✭✭


    A friend of mine who has his own business told me that for every 1 mile you travel for work when self-employed using your own personal car, you can claim back €1 of PAYE, so essentially if you drove from Dublin to Cork every week you wouldnt have to end up paying PAYE, sounds dodgy I know. If theres anyone who know about accountancy out there please could you tell me if this is true or not?


Comments

  • #2
    BrianD
    Closed Accounts Posts: 7,221 ✭✭✭BrianD


    He's wrong but there is some truth to it.

    You can use travel has a tax deductable expense. You'd have to consult the revenue about this. Basically you'd charge yourself a mileage rate for the use of your private car. This would be considered as a business expense.


  • #3
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    denhamd2 wrote:
    A friend of mine who has his own business told me that for every 1 mile you travel for work when self-employed using your own personal car, you can claim back €1 of PAYE, so essentially if you drove from Dublin to Cork every week you wouldnt have to end up paying PAYE, sounds dodgy I know. If theres anyone who know about accountancy out there please could you tell me if this is true or not?

    If you're a sole trader and you're using your own car for the business then you can claim a certain amount of expenses (say 30% of all petrol,service etc.) for the year against your income.

    So say you've got a profit of €1000 and you're car expenses are €1000.
    Then 30% of your car expenses can come off your profit, so you'll then have a taxabale profit of €700.

    The % will depend on how much you use it for your business. You can submit it without consulting the revenue, but if you get an audit they might decide on a different %, so make sure its reasonable.


Advertisement