Mileage allowances

Fey!

Does anyone know if there are any minimum mileage allowances that a business has to give if an employee has to drive somewhere?

For example, I have to get a member of staff to go from Galway to Dublin, and they have to use their own car or one of the work vans.

Is there a minimum amount per kilometre, or am I just supposed to cover their petrol costs? If there isn't a minimum amount, then how much should I be giving them? Do the rates vary with engine sizes/vehicle types/fuel types?

This doesn't happen very often, so I don't know the rules. I want to give the person what they're entitled to (they're not the type to push for it themselves), but I can't seem to find the information anywhere (except for the civil service, and even with that there are the unfathomable allowances and non-allowances!!!).

Any help would be appreciated.

Thanks.

corktina

If its a one-off, maybe pay their petrol or something like 25c per mile which would make a contribution to their other costs. Civil service pay much more I believe. ASK them how THEY want you to deal with it....

If its the work van just pay for any fuel they might have to buy

tobsey

the civil service rates are 95c/km for the first 100km per month. and 45 or 50c/km thereafter. That's the maximum you can give without the Revenue looking to tax it. That's what my company pay, though recently they've been getting people to take the train (or even fly!) to Cork from Dublin as it's cheaper.

Galyway to Dublin and back will probably cost the guts of €50, depending on the car. I'd say €100 - €150 depending costs for parking, food and any additional hours added to their day due the the travel.

Buffman

Here's the offical rates, however they are just the max you can pay without the employee having to pay tax on them. There is no minimim rate, so it's up to the two of you to come to an arrangement with each other. Option B refering to the actual costs might be your best bet.

DubDani

Just as an example... my company pays 69c/km plus any tolls that are en route.

mathepac

Your employee will need to inform their insurance company that they'll be using their private car for business travel and claiming mileage. I strongly suggest that you get them to sign an indemnity for the business confirming that they are insured for business travel and that payment of the agreed mileage is the limit to business's responsibility to them in the event of an accident.

patrickc

my company pays a rate of mileage which depends on the cc of the car also. I'm currently getting .945 per mile which goes down to .457 per mile once I reach 4,700 miles approx.

I'm in the 1600cc+ band.

alanceltic

So many people posting wrong information. The MAXIMUM rate which can be reimbursed "tax free" is 59.07cent per km and there is certain criteria around this also. An employer can of course pay a higher rate but any excess payments fall into the tax net.

Fey!

Thanks for all the replies, as well as the heads up about the insurance.

Stephen

My employer pays 65c/mile (NOT km!). They don't have different rates for different engines or anything like that. Mileage is to cover more than just the cost of fuel - there's wear and tear on your car, depreciation due to higher mileage, etc. Not a big deal for one-off trips but if you're someone who does a lot of miles for work it does add up.

Gumbo

i used to get 65c per mile in my last job, didnt matter if we had a 1 litre of 4.4 V8, which i had for a year

but i didnt complain as we were allowed claim the 65c per mile even when i used my motorbike so it balanced out.

max is currently 59c/km or 95c/Mile to not pay tax on it IIRC.