Travel/subsistence expenses for summer project

lunablau · 23-11-2015 06:40PM #1

Hi,
I'm hoping that someone can help me out with this question as my accountant couldn't. The situation is like this:
I am director of a limited company based in Dublin and I also live in Dublin. Over the summer I took on an on-site assignment for a client in Cork, which lasted 3 months. Accommodation was provided by the client, but transport was not. I was driving back to Dublin every weekend to be with my family (private car).
What, if anything, is allowed as deductible transport expenses?
Many thanks in advance

Alan Shore · 23-11-2015 07:02PM

What does your company do?

Have you established where your place of work is? How many clients do you have?

Have you any experience of the contractors project

lunablau · 23-11-2015 07:16PM

We provide specialised software development/engineering support. We have maybe 10 regular clients but it's rare that they ask us to perform the work on their premises. We do 99% of it in our own office in Dublin, so that would be my usual place of work. I had never heard of the contractors project until now.

dbran · 24-11-2015 12:55PM

Hi Lanablau

This is an very complex area and a lot would depend on the exact nature of the contract and the nature of your business in general.

However I would say that the expenses incurred may be paid tax free to you because 1) it is clear that you are running a business as you have 10 regular clients and perhaps more irregular clients 2) you are operating from a fixed base where most of the work is carried out, 3) there is no fixed routine that requires that you must travel to Cork to carry out the required work for this client, this is just a rare once off issue 4) you are not working under the direction and control of the client.

I presume that you do not have any staff.

dbran

Mr. Incognito · 24-11-2015 04:57PM

Are you an employee and being paid a salary from the company or do you simply take dividends?

If you are an employee then yes. If you are shareholder then no.

Sunny Dayz · 24-11-2015 05:15PM

AFAIK travel directly from your home to your place of work is not allowable. However travel from your office in Dublin (one place of work) to your work site (ie cork - another place of work) would be an allowable expense. You would have to keep a record of the journeys undertaken.
If you go to the Revenue website and look at the leaflet IT51.
http://www.revenue.ie/en/tax/it/leaflets/it51.html

lunablau · 24-11-2015 06:19PM

Thanks for the replies.
Yes I do have staff, we are 5 including myself. I am both an employee (taking a salary) and shareholder of the company.

Travel/subsistence expenses for summer project

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