Expenses query re. travel.

M

muchmore

Registered User
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Hi all,
Another expenses query-

I have an engineering contract position for a few months (>6) in Cork. But my base/business address is in Mayo.

I rent an apartment in Cork. Some weekends after work on Thursday or Friday I travel home to Mayo to work on reports and collect post etc from there.

Is the travel expense from Cork to Mayo a legitimate expense? I will probably do this maybe 15 times over a year- coming to about 5k expenses in mileage. So will that be ok?

Thanks
MM
 
I think you should be ok claiming travel and subsistance, but speak with an accountant first.
My accountant says that this is one area where Revenue have really tightened up on the rules and compliance in the last few years.
 
From Revenue Statement of Practice IT 2/2007 (http://www.google.ie/url?sa=t&rct=j&q=revenue+sp+it%2F2%2F2007&source=web&cd=1&ved=0CCEQFjAA&url=http%3A%2F%2Fwww.revenue.ie%2Fen%2Fpractitioner%2Flaw%2Fstatements-of-practice%2Fsp_it_2_07.pdf&ei=97N5T9j-B4nMhAemkN3eBw&usg=AFQjCNExB-eqTO1MZ3iwZ8_m5psyW3Aijw):

"The office holder’s or employee’s home would not be regarded as the normal place of work unless there is an objective requirement that the duties of the office or employment must be performed at home. In particular, it is not sufficient for an office holder or employee merely to carry out, or opt to carry out, some of the duties of the office or employment at home for home to be considered the normal place of work."

I don't really see how you can spin it to make these trips allowable.
 
@mandelbrot, in a case where the employee has a base in Mayo ie an office or prior work and then gets sent to Cork surely they are entitled to be paid revenue approved rates and overnight allowances?
 
Joe_90 said:
@mandelbrot, in a case where the employee has a base in Mayo ie an office or prior work and then gets sent to Cork surely they are entitled to be paid revenue approved rates and overnight allowances?
Click to expand...

Maybe so, but that's not what the OP asked!

All the facts of the case are relevant here - as an engineer I was assuming the OP is required to work predominantly on site, rather than at his "employer's" base, and as such he may be classed as a site based employee and entitled to country money.

Alternatively, the company could claim a deduction for the actual cost of the rented accommodation in Cork as per para. 4.7 of the Statement of Practice:

4.7 Provision of accommodation plus meals at a temporary location
"In some instances, as an alternative to paying subsistence or country money that would, under the terms outlined in this Statement of Practice, qualify as being tax free, employers provide accommodation and meals at the temporary location where their employees are working. Where this occurs, the Revenue Commissioners are prepared to accept that a taxable benefit will not be treated as arising in the hands of the employee where the following conditions are satisfied:
• the accommodation provided is not the principal private residence of the employee (i.e. he/she maintains separate accommodation where he/she normally resides); and
• if the accommodation is rented by the employer, the rent paid represents the reasonable cost of accommodation for the location; and
• the reimbursement as regards meals represents no more than a reasonable reimbursement of the actual cost."


The moral of the story is, there's more than one way to skin a cat...
 
I know this is an old thread but I am in a similar situation. I have my office premises in Dublin but have been given a contract in carlow, rather that driving up and down everyday can I get rental accomodation in carlow and expense this through the ltd company? And if so can this be for the duration of the contract?
 
I suppose I'd spend 80% of my time in carlow and the other 20% in the office in Dublin.
 
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