How should I claim for my motor expenses?

Following on from the post – Can I claim for my lunch expenses – let’s look now at clearing up the sometimes grey area of motor expenses, mileage rates and who can and cannot claim them. The prevailing schedule of Civil Service rates orAny other schedule with rates not greater than the Civil Service rates

The payment of motor expenses relates to an employee of a business (including company directors) and not to sole traders – where the actual motor running costs incurred are claimed as a business expenses in the financial accounts. Motor expenses can be paid to an employee where the employee uses their own private car for business purposes. For example, where an employee is required to travel to a client or customer’s place of business in order to carry their job.

Where an employee uses their own private car to make this journey, the employee may be paid an expense by the employer. The payment is designed to cover the additional costs of fuel, wear and tear etc of the employee in having to use their car for the business purpose. This payment is generally a tax free payment (although there are some exceptions, so be careful). In the case of company directors, the expense payment can only be made where the directors use their own personal vehicle, not any vehicle owned by the company. In all cases, travel to and from an employee’s home and place of employment is not allowed for tax purposes. Any payment made to an employee in this regard needs to be treated as taxable pay.

There are a number of ways for calculating motor expenses to be paid and the method adopted by the employer will generally depend on the nature of the business, frequency of travel and length of stay away from the normal place of business. The different methods may also have different tax treatments, so make sure you take this into account when deciding on the most appropriate method.

1. Re-imbursement of Motoring Expenses by Flat-Rate Kilometric allowances.There are two types of kilometric schemes which are acceptable for tax purposes, if an employee bears all the motoring expenses:

This is probably the most common method used as it is not difficult to administrate and the payments are calculated by predefined rates.

For any rates to be paid to employees that are greater than the prevailing civil service rates, an application must be made to Revenue for approval to use any such increased rates.

2. Expenses claims submitted to RevenueAnother option is for the employee to submit a claim to Revenue for an expenses deduction (and any wear and tear allowance in respect of the motor vehicle). Where the employee this type of claim, any payment of motor expenses by the employer, including any scale allowances, must be treated as pay and taxed accordingly.

3. Round Sum Expenses:Where the employer agrees to pay an employee an agreed amount each pay period in addition to normal salary to cover expenses. The expense amount agreed is treated as “Pay” and is taxable in the same way as if it were part of the normal salary payment. Any round sum motor expense paid by the employer to the employee

It is good to remember that the above specifically relate to motor expenses and do not include reimbursement for other expenses that maybe incurred as a result of having to travel for work purposes.

47 Comments on “How should I claim for my motor expenses?”

  1. I needed to compose you this bit of observation to be able to give many thanks
    the moment again for your nice information you have shared at this time.
    It’s shockingly open-handed with you to provide unreservedly what exactly a lot of folks would’ve supplied for an e book to earn some bucks for their own end, and in
    particular considering that you could possibly have done it if you desired.
    The concepts in addition worked to become great way to fully
    grasp that other individuals have the same eagerness like my very own to
    figure out more with respect to this issue. I know there are numerous more
    enjoyable occasions up front for individuals who scan your site.

  2. Good day! I could have sworn I’ve been to this website before but after looking at some of
    the articles I realized it’s new to me. Anyways, I’m definitely delighted I stumbled upon it
    and I’ll be bookmarking it and checking back frequently!

    Have a look at my site :: foot brace

  3. Hi! This post couldn’t be written any better! Reading this post reminds me
    of my previous room mate! He always kept chatting about this.
    I will forward this article to him. Pretty sure he will have a good read.
    Thanks for sharing!

    Also visit my blog post … NINJA SAGA HACK

  4. There are many options when considering what type of wedding venue to
    choose for your special day, from stately homes, castles, marquees, churches and even sports event reception halls
    such as golf course club houses. Wedding favors can be something
    tasty, meant to be enjoyed and consumed at the party.
    By breaking the norms and thinking out of the box, you can have an interesting and memorable wedding cake.

  5. When you want the top looking lawn, you need to keep it
    longer because it allows it to look fuller. Just make sure to compare two or more lawn mowing companies
    and see which one can give you good services at a reasonable price.
    This is left longer than the fairway and can sometimes be mown into first and second cuts set at
    increasing heights.

  6. Wow, fantastic blog layout! How long have you been blogging for?
    you made blogging look easy. The overall look of your
    site is wonderful, as well as the content!

  7. But there iis a lot more to building corporate credit then age alone
    but if you do decide to purchase one make sure it’s reasonably priced and at least two years old with nno liabilities attached.
    Keep in mind that the asset must be within the country that
    you are attempting to get the loan in. You
    can easily determine which oof your expenses are eligible
    for tax deductions simply by checking your business credit card account.

  8. I don’t know if it’s just me or if perhaps everyone else encountering
    problems with your website. It seems like some of the written text on your
    posts are running off the screen. Can someone else please comment and let me know
    if this is happening to them as well? This may be a issue with my browser because I’ve had this happen before.

    my site: Linkedin Maps

  9. Como estan! Podrias decir cual ees la plataforma que estas usando?
    Estoy planteandome inaugurar mi propio web pronto, pero me esta portando sobrado tiempo elegir entre BlogEngine/Wordpress/B2evolution/Blogger y Drupal.
    La razon hhago la consulta es porque tu estilo me resulta diferente que la mayor parte de Webblogs y yo estoy rastreando para crear alpgo completamente
    unico. P.D Mis disculpas estar fuera de tema
    pero debia de consultar!

    Revisa y ademmas navega por mi web blog: gta 5 play 3 codigos

  10. When you see the dog turning around in circles, sniffing at a spot, you need to take
    it as a signal that it needs to urinate or defecate.
    It also helps in ensuring that it does not get fat as a result of excessive eating.
    This elite centre, after having proved its training mettle, has started getting requests from many
    organisations to allot seats in explosive detection, tracking, infantry patrol, narcotics detection and search & rescue.

  11. In reality, I don’t recommend online only life support classes at all.
    In order to get the most out of such training, it is
    advisable to invest in a training center that offers the full range of courses you wikll
    need. Every training requirement and demand gets accomplished in just few hours
    beginning from 8 hour to 30 hour course duration.

    Review myy web blog :: learn (

  12. I accept you ws assurance may able-bodied yield amusement in it.I realize that every these capacity ability be much bigger aces a bulletin lath article, however anticipation they can anniversary be accordant for the column and remarks.Appreciate it

  13. whoah this blog is wonderful i really like studying your articles.
    Stay up the great work! You already know, lots of individuals are searching around for this info,
    you can aid them greatly.

  14. Hi there! This post couldn’t be written any better!
    Reading through this post reminds me of my previous room mate!
    He always kept chatting about this. I will forward this page to him.
    Pretty sure he will have a good read. Many thanks for sharing!

  15. Magnificent goods from you, man. I have understand your stuff previous to and you are just extremely wonderful.
    I actually like what you have acquired here,
    really like what you are saying and the way in which you say
    it. You make it entertaining and you still take care of to keep it smart.
    I can’t wait to read far more from you. This is really a terrific

  16. I just couldn’t leave your web site prior to suggesting
    that I actually enjoyed the usual info a person supply on your guests?
    Is gonna be again frequently in order to check up on new posts

  17. you are truly a just right webmaster. The web site loading speed is incredible. It sort of feels that you are doing any distinctive trick. Also, The contents are masterpiece. you’ve performed a excellent job on this topic!

  18. Hi Great article, but can you advise if the employers sets the rate of expenses in the example of a claim of general motor expenses.
    Example A in the I51 section of motor tax claims

Leave a Reply