Employees’ Subsistence Rates

Revenue leaflet IT54 is a document you may be aware of. It sets out the Revenue’s rules and allowable rates for tax free subsistence payments to employees.

IT54 has been updated from the 1st of July 2015. The rates have been amended and the requirement to be 5km away from the office in certain instances has been increased to 8km. If you make tax free subsistence payments to employees, we recommend that you familiarise yourself with the new IT54.

Maura Duffy, Partner with HLB Sheehan Quinn commented on the changes made by the Revenue saying “In our most recent dealings with Revenue we have noticed that motor mileage and subsistence expenses continue to be an area that Revenue scrutinise as part of their enquiries. As well as detailed support to motor mileage claims it is also a requirement to be able to substantiate subsistence expenses with logs to support the claims made.”

“We are fully aware just how unwelcome the task of completing weekly or monthly log books can be. However, this is an unavoidable obligation for individuals and companies claiming these tax free payments. However hard it is to prepare monthly claims, making claims for more than one month is a very unenviable task.”

“We therefore urge you to revisit your procedures with the aim of bringing these records fully up to date and ensuring that you are claiming the most up to date subsistence rates, if you haven’t already done so.”


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