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Car expenses and allowance from Employer

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    #32
    JHMEG
    Closed Accounts Posts: 7,686 ✭✭✭JHMEG


    unkel wrote: »
    Oops I actually typed the wrong figures. You can only expense the least of the two figures. So only 20 km, and NOT 30 km as I posted
    It's very easily solved by driving to the office first, and then claiming mileage from the office to where ever. That's the way I did it when I worked in the public service, but I was fortunate to live quite close to where I worked.


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    #33
    testicle
    Closed Accounts Posts: 5,430 ✭✭✭testicle


    rabbitinlights wrote: »
    I'm also in a similar position; 5,000 euros Car allowance (419e a month) and 64c per mile (every mile) and i'll probably be doing 25,000 miles.

    From my understanding the allowance is taxable and subject to levy and prsi so will actually be more like 300 euros in my pocket where as the per mile rate is a tax free expense.

    When would the revenue step in and start taxing the per mile rate?

    S.

    When you go over the Civil Service rate, which you have done. The max, untaxable, is 59.07c per km for engines over 1501cc, and only for the first 6437km. For any mileage over 6437km, the maximum is 28.46c

    Actually, scratch that, you're on a per mile rate. The max, untaxable, is 95.05c per mile for engines over 1501cc, and only for the first 4000 miles. For any mileage over 4000 miles, the maximum is 45.79c.

    Given you claim under the Civil Service rate for 4000 miles, assuming you drive a car >1501cc, and over it by (64-45.79=) 18.21c for 21,000 miles that's a potential tax liability on a total of €3824.10 ....

    I hope your company is never audited!


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    #34
    An Ard Ri
    Registered Users Posts: 143 ✭✭An Ard Ri


    Lex Luthor wrote: »
    There is probably a very good chance that the 400/month is taxed...can't see how else it could be paid without paying tax/prsi & health leavy and all the other levies on it.

    If thats the case, then its not great...

    I get 27c/km plus €1k/month allowance which is IMO not bad. For me it works out better as I only do about 15,000km/year, but it might be in your interest to get the higher mileage rate and lower allowance if you do more on the clock like you do about 40k

    Lex,

    This is the form i was talking about in the message i sent you today. Any questions. Give me a shout.


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    #35
    rabbitinlights
    Registered Users Posts: 4,003 ✭✭✭rabbitinlights


    testicle wrote: »
    I hope your company is never audited!

    ;) What happens if my company is UK based?

    Thanks for explaining that though, makes things much clearer.


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    #36
    Heroditas
    Registered Users Posts: 9,449 ✭✭✭Heroditas


    rabbitinlights wrote: »
    ;) What happens if my company is UK based?

    You'll just get audited instead. :p


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