Please be aware that this resource is informational only, and many external factors, unique to your company might apply.
Each company must make their own decisions about how they meet their tax obligations.


 

An employer in Ireland can reimburse employees for using a personal vehicle for business journeys. This does not apply to commuting from home to the normal place of work. The employer can either reimburse the actual expense of travel of the employee or reimburse a fixed mileage allowance per kilometer.

Actual expense

In case the employer chooses to reimburse the actual expense of travel, all of the following conditions must be met:

  • the employee was necessarily obliged to pay the expenses to carry out their duties;
  • the expenses were reimbursed on the basis of vouched receipts.

    Fixed mileage allowance

    There is a maximum mileage allowance per kilometre that the employer can reimburse tax-free. The mileage allowance rates depend on the type of vehicle. These maximum amounts are based on the Civil Service rates and can be found on the website of the Irish Revenue.

    Cars

    Motor travel rates (between 1 April 2017 and 31 August 2022):

    Distance band Engine capacity up to 1200cc Engine capacity 1201cc – 1500cc Engine capacity 1501cc and over
    Up to 1,500 km (Band 1) 37.95 cent 39.86 cent 44.79 cent
    1,501 – 5,500 km (Band 2) 70.00 cent 73.21 cent 83.53 cent
    5,501 – 25,000 km (Band 3) 27.55 cent 29.03 cent 32.21 cent
    25,001 km and over (Band 4) 21.36 cent 22.23 cent 25.85 cent

     

    Motor travel rates (From 1 September 2022):

    Distance band Engine capacity up to 1200cc Engine capacity 1201cc – 1500cc Engine capacity 1501cc and over
    Up to 1,500 km (Band 1) 41.80 cent 43.40 cent 51.82 cent
    1,501 – 5,500 km (Band 2) 72.64 cent 79.18 cent 90.63 cent
    5,501 – 25,000 km (Band 3) 31.78 cent 31.79 cent 39.22 cent
    25,001 km and over (Band 4) 20.56 cent 23.85 cent 25.87 cent

     

    The motor travel rates applicable before 1 September 2022 remain applicable for mileage an employee incurred between 1 January 2022 and 31 August 2022. The kilometres the employee accumulated in 2022 to date count towards the aggregated mileage for the year.

    Example: An employee has claimed 1.400 km by 31 August 2022. The employee would move to the new rate applicable to Band 1 for the remaining 100 km in that band.

    Additional notes on mileage allowances for cars:

    • If the employee uses electric vehicles, the rates applicable to engine capacity 1201cc-1500cc should be used;
    • Hybrid vehicles should be based upon their engine capacity.

      Motorcycles

      Motorcycle rates (from 5 March 2009):

      Distance Engine capacity up to 150cc Engine capacity 151cc – 250 cc Engine capacity 251 cc – 600 cc Engine capacity 601cc and over
      Up to 6,437 km 14.48 cent 20.10 cent 23.72 cent 28.59 cent
      6,438 km and over 9.37 cent 13.31 cent 15.29 cent 17.60 cent

       

      Bicycles

      The bicycle rate (from 1 February 2007) is 8 cent per kilometer.

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      Learn how you can apply these mileage rates in your Rydoo account here.

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