VAT Services, Donegal, Ireland


Some significant changes to the civil servant mileage rates were introduced on 1st April 2017. As well as the public sector, these changes will also impact voluntary organisations and all private sector businesses that reimburse their employees for business motoring and subsistence expenses.

Mileage Rates

The main changes are:

• Increase in the number of distance bands from two to four;
• A lower rate for the first 1,500Km;
• An increased rate from 1,501km to 5,500km; and
• More beneficial compensation rates for cars with lower engine sizes and emissions.

Importantly mileage incurred between 1 January and 1 April 2017 will not be affected by the introduction of the bands and rates but will count towards aggregated mileage for the year.
As a result, some employees will find themselves financially “better off” while others may be worse off, depending on the distances traveled, the type and efficiency of their car.

Distance Bands Engine Capacity Up to 1200 cc Engine Capacity 1201 cc to 1500 cc Engine Capacity over 1500 cc
Band 1 0 – 1,500 km 37.95 cent 39.86 cent 44.79 cent
Band 2 1,501 – 5,500 km 70.00 cent 73.21 cent 83.53 cent
Band 3 5,501 – 25,000 km 27.55 cent 29.03 cent 32.21 cent
Band 4 25,001 km and over 21.36 cent 22.23 cent 25.85 cent

Subsistence Rates

The revised subsistence rates are as follows:

Overnight Rates
Normal rate Reduced rate Detention rate
€133.73 €120.36 €66.87


Day Rates 

10 hours or more  5 hours but less than 10 hours
€33.61 €14.01


Vouched Accommodation (“VA”) Domestic Subsistence Rates (for use in Dublin only) Accommodation Meals
VA Rate Vouched cost of accommodation up to €133.73 Plus €33.61


Further information is available on the Revenue website here.

For expert Business advice that you can trust, please contact our team at MLMG today or call us on 07493 21420