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
