Claiming Subsistence Allowances in 2024
The subsistence allowances for 2024 have changed and if you are spending time outside of your normal place of work there may be the opportunity to claim these tax free expenses. These are often overlooked but could amount to a sizeable tax free amount over the course of the year.
Key Points to consider:
Day allowances - Between five and ten hours
A Rate of €17.92 per day - The assignment must be outside eight kilometers of the employee's home and normal place of work.
Day allowances - Ten hours or more
A Rate of €42.99 per day - The assignment must be outside eight kilometers of the employee's home and normal place of work.
Overnight Allowance - Up to 14 nights
A Rate of €195 per night - The assignment must be at least 100km from the employee's home and their normal place of work. The rate drops to €175.50 per night for the following 14 nights of the assignment and then €97.50 for each of the next 28 days of the assignment
Who can qualify?
Where office holders and employees necessarily incur expenses of travel (and subsistence relating to that travel) in the performance of the duties of their office or employment, the reimbursement of such expenses may, within certain limits can be made tax-free.
Where expenses are reimbursed based on an acceptable flat rate allowance, the employer must retain a record of:
– The name and address of the director or employee,
– The date of the journey,
– The reason for the journey,
– The kilometers travelled,
– The starting point, destination and finishing point of the journey, and
– The basis for the reimbursement of travel and subsistence expenses [e.g. an overnight stay away from an individual’s normal place of work].
When reimbursing expenses vouched by receipts, the employer must retain such receipts, together with details of the travel and subsistence expenses incurred.
The period of retention of records is six years after the end of the tax year to which the records refer.
Working Example
Joe is an operations director who spends 6 days on average, every month presenting completed work to existing clients off site (over 100kms away) and is away from the office for 5 hours or more. This equates to €1,290 tax free in the year.
Mary is a sales director who spends 10 days on average, every month presenting completed work to existing clients off site (over 100kms away) and is away from the office for 5 hours or more. She also spends on average, once a month, away for the full day (10 hours).This equates to €2,666 tax free in the year.
Tip - Don't forget
You can also claim mileage expenses if you are using your private car for business journeys. Please note that subsistence is now reportable under the Enhanced Reporting Requirements from 1st January 2024.
Author..
Brenda Smith ACCA, Operations Director at Solve Outsource
Contact Email: brenda@solve.ie
