Claiming Mileage and Subsistence as an Independent Professional Contractor in 2022

With fuel prices reaching an all-time high, what better time to ensure our clientele and the wider Contractor Community are fully aware of what mileage and travel costs can be reimbursed as a business expense - let's jump in!

  • Contracting info
  • Expenses

When can I claim business mileage?

Where Contractors use their private cars or motorcycles for business purposes, claiming mileage is considered an allowable business expense.

It is important to be aware that Contractors are not entitled to claim mileage to and from their home and your normal place of work (and vice versa).
Only mileage relating to business journeys away from your normal place of work are considered allowable.

What is my ‘normal’ place of work?

The normal place of work is the location where the majority of your work is carried out. It is important to note this is not limited to the location specified on a contract, but other factors may also have an impact.

As a contractor, where possible this should be stated on the Contract for Services.
Most contracts will make it very clear where the normal place of work is, but, if there is any ambiguity, talk to your Accountant and they will be able to advise further.

How do I calculate my mileage claim?

Where you start a business journey directly from home to a temporary place of work or return home directly, the business kilometres should be calculated using the Revenue approved rates below.

Mileage rates are dependent on the engine capacity of the car used.

What are the pre-approved Civil Service mileage rates?

Firstly, it is very important that you keep a record to be able to clarify and confirm all mileage expenses should it be called upon. This could include a diary or spreadsheet of all travel claimed and a record of the distance travelled, as well as the purpose of the travel.

Below are the rates of mileage/km you can claim for business journeys:

 

                     Engine Capacity

Distance Band

up to 1200cc

1201cc-1500cc

1501cc +

1500km

41.80c

43.40c

51.82c

1501-5500 km

72.64c

79.18c

90.63c

5501 - 25000km

31.78c

31.79c

39.22c

25001km +

20.56c

23.85c

25.87c

What is Subsistence?

Where you perform the duties of your contract away your normal place of work or working abroad on a foreign assignment, allowable subsistence expenses can be claimed.

Time spent at the normal place of work and on journeys between home and the normal place of work are not recognised or accepted as a qualifying absence from Revenue’s perspective.
The subsistence rates are also outlined by Revenue and are listed below:

Subsistence Rates

Rate Category

      Rate

Overnight

     €167.00

10 hours +

     €39.08

5-10 hours

     €16.29


There have also been further rates introduced for circumstances where required. Please reach out to your accountant to discuss your stay before committing to any booking! 


What costs are covered in Subsistence Rates?

The overnight subsistence rates include the cost of one night’s accommodation. There is an additional €39.08 to cover meals.
The daily subsistence rate of ten hours or more, includes the cost of two meals.
The daily subsistence rate between five and ten hours, includes the cost of one meal.
 

Where can I find more information?

You can find more information on the Revenue website https://www.revenue.ie/en/employing-people/employee-expenses/travel-and-subsistence/index.aspx

If you are a client of Icon Accounting, you can reach out to your Account Manager directly to enquire about travel and subsistence claims and the Icon Accounting App makes it easier than ever before to upload these expenses.

If you are acting as an Independent Professional and struggling to process these claims, please get in touch with our Business Development team by emailing info@iconaccounting.ie or by calling 01-8077106 and they will be happy to assist and advise wherever possible.

We’re passionate about the Contracting Community in Ireland and if we can help, we’ll be more than happy to do so!

Author

Gerard Kiernan

Director

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