The Department of Public Expenditure and Reform recently published new civil service mileage rates.  As you will be aware, these provide the maximum limits for businesses that offer employees tax free reimbursement for business motoring expenses.  The new rates came into effect on 1 April 2017.

The revised formula for calculating the rates takes into account both the overhead and running costs of using a private vehicle for “official” or business purposes.  Some of the main changes to the revised formula are as follows:

  • An increase in the number of distance bands from two to four;
  • A lower reimbursement rate for the first 1,500km;
  • An increased reimbursement rate from 1,501km to 5,500 focused on officers or employees who do significant work related driving; and
  • More beneficial compensation rates for cars with lower engine sizes and emissions.

The new rates per kilometre are as follows:

Distance

  

Engine Size: 0-1200cc

Engine Size: 1200-1500cc

Engine Size: 1500cc and over

Band

KM Range

Cents per KM

Cents per KM

Cents per KM

1

0 to 1,500

37.95

39.86

44.79

2

1,501 to 5,500

70.00

73.21

83.53

3

5,501 to 25,000

27.55

29.03

32.21

4

Over 25,000

21.36

22.23

25.85

 

There is a set of new reduced motor travel rates per kilometre who undertake a journey associated with their job but not solely related to the performance of their duties, such as: 

  • Attendance at confined promotion competitions, approved courses of education or conferences; or
  • Return visits home at weekends during a period of temporary transfer.

 These rates are as follows:

Engine Capacity up to 1200cc

Engine Capacity 1201cc to 1500cc

Engine Capacity 1501cc and over

16.59 cent

17.63 cent

18.97 cent

 

The Motor Travel Rates for motorcycles and bicycles remain unchanged.