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BIK what is personal mileage

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  • 13-12-2019 12:18pm
    #1
    sundodger5
    Registered Users Posts: 1,137 ✭✭✭


    Thought i had seen the answer to this on revenue a while back but cannot find it now.
    If you are a sales rep employed by a company based in Dublin but most of your time is out on your territory does your journey to your customers count as personal mileage.
    Some are saying that once you leave your house to your first customer that that is personal mileage.
    My thought is that the office in Dublin is my place of employment and once out and about that that is business mileage.
    Anyone able to point me to a definitive answer?
    Thanks


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    #2
    Homer
    Registered Users Posts: 4,260 ✭✭✭Homer


    Travel to and from your office is excluded, but obviously from your home to clients is included in your mileage from my understanding. And back home from clients.


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    #3
    Marcusm
    Registered Users Posts: 10,184 ✭✭✭✭Marcusm


    sundodger5 wrote: »
    Thought i had seen the answer to this on revenue a while back but cannot find it now.
    If you are a sales rep employed by a company based in Dublin but most of your time is out on your territory does your journey to your customers count as personal mileage.
    Some are saying that once you leave your house to your first customer that that is personal mileage.
    My thought is that the office in Dublin is my place of employment and once out and about that that is business mileage.
    Anyone able to point me to a definitive answer?
    Thanks

    If leaving from your home, It’s the shorter of the difference between your office and the client vs your home and the client. Clearly if leaving from the office it’s the distance between the office and the client. This is on the presumption that your office is your usual place of work.


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    #4
    sundodger5
    Registered Users Posts: 1,137 ✭✭✭sundodger5


    So for clarity. Lets say the office is 220km
    My first call is Letterkenny which is, lets say, 219 km
    I pay personal mileage on 219km there and back.
    At 9c a km plus the possible change in bik band that makes going to work very expensive.
    Am i understanding what you said correctly?


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    #5
    Calahonda52
    Registered Users Posts: 12,193 ✭✭✭✭Calahonda52


    sundodger5 wrote: »
    So for clarity. Lets say the office is 220km
    My first call is Letterkenny which is, lets say, 219 km
    I pay personal mileage on 219km there and back.
    At 9c a km plus the possible change in bik band that makes going to work very expensive.
    Am i understanding what you said correctly?
    where is home, roughly?

    “I can’t pay my staff or mortgage with instagram likes”.



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    #6
    sundodger5
    Registered Users Posts: 1,137 ✭✭✭sundodger5


    Mayo


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    #7
    Calahonda52
    Registered Users Posts: 12,193 ✭✭✭✭Calahonda52


    Marcusm wrote: »
    If leaving from your home, It’s the shorter of the difference between your office and the client vs your home and the client. Clearly if leaving from the office it’s the distance between the office and the client. This is on the presumption that your office is your usual place of work.

    OP is this true?
    .

    “I can’t pay my staff or mortgage with instagram likes”.



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    #8
    Calahonda52
    Registered Users Posts: 12,193 ✭✭✭✭Calahonda52


    sundodger5 wrote: »
    So for clarity. Lets say the office is 220km
    My first call is Letterkenny which is, lets say, 219 km
    I pay personal mileage on 219km there and back.
    At 9c a km plus the possible change in bik band that makes going to work very expensive.
    Am i understanding what you said correctly?

    This is a bit terse:)

    Can you give some examples of going from A to B to C to D etc where A,B,C,D can be home or office, or client 1, or client 2, whatever!

    “I can’t pay my staff or mortgage with instagram likes”.



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    #9
    sundodger5
    Registered Users Posts: 1,137 ✭✭✭sundodger5


    Maybe the answer boils down to what defines normal place of work.
    Like most sales reps, particularly outside Dublin, my place of work is my car. Geographically it is anywhere inbetween Donegal to Clare going Norrh to South. Mayo to Westmeath going west to east.
    Lets take an extreme day. Last Thursday i had to be in Moville Donegal for 9.30am 3 customers. Then to Carndonagh 2 stops each with 2 customers. Finally Letterkenny 3 customers then home.
    Only times i would be in the office wiuld be training or sales meetings really.


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    #10
    Marcusm
    Registered Users Posts: 10,184 ✭✭✭✭Marcusm


    sundodger5 wrote: »
    Maybe the answer boils down to what defines normal place of work.
    Like most sales reps, particularly outside Dublin, my place of work is my car. Geographically it is anywhere inbetween Donegal to Clare going Norrh to South. Mayo to Westmeath going west to east.
    Lets take an extreme day. Last Thursday i had to be in Moville Donegal for 9.30am 3 customers. Then to Carndonagh 2 stops each with 2 customers. Finally Letterkenny 3 customers then home.
    Only times i would be in the office wiuld be training or sales meetings really.

    In the absence of evidence to the contrary, Revenue will assume 8,000kms per annum private mileage. What is your total annual mileage? It might be to your advantage to accept Revenue’s rebuttable presumption.


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    #11
    sundodger5
    Registered Users Posts: 1,137 ✭✭✭sundodger5


    usually around 80,000 kms


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    #12
    Marcusm
    Registered Users Posts: 10,184 ✭✭✭✭Marcusm


    sundodger5 wrote: »
    usually around 80,000 kms

    In which case, accept Revenue’s assertion and you are already at the lowest BIK level. I hope you have a comfortable seat.


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    #13
    sundodger5
    Registered Users Posts: 1,137 ✭✭✭sundodger5


    Marcusm wrote: »
    In which case, accept Revenue’s assertion and you are already at the lowest BIK level. I hope you have a comfortable seat.

    Thanks for your reply but i think you missed the point. In the example above is my travel from home to my first call and from my last call home. Business or personal mileage.
    I think business as i am at work but some people say otherwise. Just looking for clarity.


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    #14
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    sundodger5 wrote: »
    Thanks for your reply but i think you missed the point. In the example above is my travel from home to my first call and from my last call home. Business or personal mileage.
    I think business as i am at work but some people say otherwise. Just looking for clarity.


    Are you talking about mileage qualification rather than BIK?


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    #15
    sundodger5
    Registered Users Posts: 1,137 ✭✭✭sundodger5


    yes, what counts as business/personal mileage in my example above


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    #16
    Marcusm
    Registered Users Posts: 10,184 ✭✭✭✭Marcusm


    sundodger5 wrote: »
    Thanks for your reply but i think you missed the point. In the example above is my travel from home to my first call and from my last call home. Business or personal mileage.
    I think business as i am at work but some people say otherwise. Just looking for clarity.

    Nope, I didn’t miss the point. Revenue is most concerned with the split between business and personal mileage when you are claiming mileage allowance. For BIK purposes, they only care about personal mileage to the extent you claim it is less than 8,000kms per annum. The lowest BIK rate applies to individuals with mileage above 48,000 ins per annum. In the absence of evidence (ie records to the contrary), Revenue assumes 8,000kms. Once this is deducted from the 80k you do, you are still 50% above the rate for lowest BIK. Revenue does not insist on a log of personal mileage for BIK purposes.


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    #17
    sundodger5
    Registered Users Posts: 1,137 ✭✭✭sundodger5


    I appreciate that but i also pay personal mileage at 9c per km.
    So if my journey to my first call and return from my last call is personal it has a cost implication.
    Also it would change my bik band from 6% currently.


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    #18
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    I can't see how it could be argued that you should pay personal mileage going to your first call. It would do nothing but punish people who work remotely from their office. As someone working for your company close to the office can drive there and then drive hundreds of km to their first call on business mileage but you have to cover the cost of this as personal?

    What is personal about driving to a customer? Driving to and from your normal place of work is not allowd but a customer is not your normal place of work so to me its 100% business mileage.


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    #19
    Marcusm
    Registered Users Posts: 10,184 ✭✭✭✭Marcusm


    sundodger5 wrote: »
    I appreciate that but i also pay personal mileage at 9c per km.
    So if my journey to my first call and return from my last call is personal it has a cost implication.
    Also it would change my bik band from 6% currently.

    You mean you reimburse your employer for what you each deem to be personal mileage? That will be relevant in that every cent you make good out of after tax income reduces the amount of income assessed for BIK. What is to be treated as personal mileage for this purpose is a matter for you and your employer alone. Revenue does not have a say in that.


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