Work Travel - Mileage Expenses Alternative Options

Conor79

Hi All
I have recently encountered a dilemma in my job. I've taken on a new role which, unlike the previous role requires a lot of nationwide (car) travel. There was no discussion around travel etc as part of me taking on the role as it is one of those roles that you carve out yourself!

I have been claiming mileage expenses for travel undertaken over the past few months but it is messy and involves seeking approval every time I make a claim. I also fear that the amounts of money involved, when accumulated may raise some eyebrows within the organisation.

It's clear now that the travel aspect of the role will continue into 2021.
While it is lucrative (although messy) for me to continue to claim mileage expenses, given the amount of travel I'm thinking there must be a more economical and cleaner way for the company to fund this (e.g. car allowance etc). A company car is not an option.

To be clear, I want to initiate a conversation with my boss about "how the company could do this more economically". If the response is "just keep claiming the mileage", then I will do so with greater comfort that having raised the subject of a more economical option!

Any advice on approach / alternative options for the company would be appreciated.

Thanks

dashoonage

So let me get this straight..... you dont want to make a few extra quid off mileage ?

Tails142

Claim away would be my thinking, they'll let you know if it's a problem.

The big rollers where I work would pull in 2k a month on mileage and be driving around in passats/octavias pushing 500k km with nearly every part replaced including drivers seats!

The cheapest alternative for your company is to hire you a small van for a couple of hundred a month, so you can think about whether you'd like that.

relax carry on

These are the rules your employer is bound by for millage.

https://www.revenue.ie/en/employing-people/employee-expenses/travel-and-subsistence/index.aspx

They can provide you with a vehicle that may have BIK implications. They can pay you a round sum allowance which will be taxable.

Conor79

dashoonage wrote: »

So let me get this straight..... you dont want to make a few extra quid off mileage ?

I do want to make the money! But what I don't want to happen is a stewards enquiry and I at the centre of it.

If I proactively propose a more economical (for the company) solution then this is first line of defence.

Another dimension to this - which I probably should have stated in my OP - is that I may invest in a better car given the level of mileage I'm doing.
I would be nervous committing to the expense of a car upgrade on the basis of funding by expenses, which can be turned off instantly.I suspect a more formalised arrangement (e.g. car allowance) would be much more stable and certain.

Hope this makes sense.

ELM327

Mileage is one of the last and best ways of making tax free money.
If you're getting anything close to civil service mileage then you're going to be in profit after fuel, tax and expenses.

Conor79

Tails142 wrote: »

The cheapest alternative for your company is to hire you a small van for a couple of hundred a month, so you can think about whether you'd like that.

Good idea and will consider suggesting, thanks

vandriver

The civil service rates are supposed to cover you for actually running the car,the regular bills,the huge irregular bills,the fuel insurance etc.
I suspect you're in the honeymoon period of car expenses where nothing has gone wrong,and you haven't realised what huge depreciation you're racking up.Of course you feel like you're making at your employer's cost.
When the gearbox goes and the car is worth tuppence ha'penny on a trade in, reassess how generous the rates are!

Allinall

vandriver wrote: »

The civil service rates are supposed to cover you for actually running the car,the regular bills,the huge irregular bills,the fuel insurance etc.
I suspect you're in the honeymoon period of car expenses where nothing has gone wrong,and you haven't realised what huge depreciation you're racking up.Of course you feel like you're making at your employer's cost.
When the gearbox goes and the car is worth tuppence ha'penny on a trade in, reassess how generous the rates are!

This.

Plus, don't forget the extra insurance costs ( Assuming you have informed them. If you haven't, you could be in a whole world of trouble.)

It isn't the gravy train some make it out to be.

POBox19

Have done this for years and many kms on the roads. Stick with the Civil Service Rates and in addition the overnight allowances as well. Also, it you are required to carry any of your employers goods or fellow staff you will need commercial insurance cover for yourself. This costs more, but you can go to your revenue unit with a request for an extra rate on the bands to pay for the cost.
As for the messy business of administration you’ll need a spreadsheet for each month showing the travel per day or per round trip which you sign off and hand into your accounts dept for reimbursement along with your other expenses.
You are fully responsible for the costs of running the car and you choose when to change and what to buy. As long as you provide reliable transportation for the job the company doesn’t have the hassle of managing a car and it is usually a good trade off for them.

L1011

Allinall wrote: »

This.

Plus, don't forget the extra insurance costs ( Assuming you have informed them. If you haven't, you could be in a whole world of trouble.)

It isn't the gravy train some make it out to be.

Class 1 cost me about 8 quid to add; its only really pricey to go for the higher categories or if you're very young / very high risk. Some insurers have usage limits on Class 1 but those generally have an option to remove that limit for very little too.

ELM327

Allinall wrote: »

This.

Plus, don't forget the extra insurance costs ( Assuming you have informed them. If you haven't, you could be in a whole world of trouble.)

It isn't the gravy train some make it out to be.

Adding class 1 insurance is not that expensive.

dennyk

Conor79 wrote: »

I do want to make the money! But what I don't want to happen is a stewards enquiry and I at the centre of it.

If you're submitting legitimate mileage information (i.e. not padding your estimates or driving laps around the island on your way from Dublin to Kildare) and the amount you're getting reimbursed per km is reasonable (i.e. in line with Civil Service rates), then you can't possibly be faulted for anything. Your employer presumably knows how much travel is required for the duties they're assigning you; it's their responsibility to decide how they want to handle that expense. If they want to take a different path than mileage reimbursement, then they'll no doubt do so. If they don't, then it's safe to assume that they either don't care or they've already examined the alternatives and have determined that mileage-based reimbursement makes the most sense to them.

POBox19

dennyk wrote: »

Your employer presumably knows how much travel is required for the duties they're assigning you; it's their responsibility to decide how they want to handle that expense. If they want to take a different path than mileage reimbursement, then they'll no doubt do so.

Don't accept a rate lower than the CS rate and if the employer offers more you'll have a tax liability on the excess.