Company moving

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Cutangle

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Hi ,the company I work for is relocating 33km from its present location , the are paying us 0.23 cent per km for 2 years in 2 lump sums , half was paid last December and the other half to be paid at the end of this month , for tax purposes they paid us 500 in the form of a voucher and will do the same for the second payment , is the remainder fully taxed including PRSI and USC and if so is there any way of reducing this amount

Thanks
Gerry
 
33km x 2 = 66km x.23 = 15.18 per day x 230 = €3,491 pa.

It could be argued that your normal place of work was the previous premises and you are required to travel to the new premises as as part of your job and therefore the payment is tax free.
 
Joe_90 said:
33km x 2 = 66km x.23 = 15.18 per day x 230 = €3,491 pa.

It could be argued that your normal place of work was the previous premises and you are required to travel to the new premises as as part of your job and therefore the payment is tax free.
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Thats what I was hoping , do I argue that with my employer or the taxman
 
Joe_90 said:
33km x 2 = 66km x.23 = 15.18 per day x 230 = €3,491 pa.

It could be argued that your normal place of work was the previous premises and you are required to travel to the new premises as as part of your job and therefore the payment is tax free.
Click to expand...

Joe, I normally agree with what you post, but this is just not right (unless you mean it could be argued and lost!).

A "normal place of work" is a concept that exists only within a Revenue statement of practice for the operation of a concession allowing tax free reimbursement.

The statutory test that underpins this concession is the question of whether the holder of an employment is obliged to incur the cost of a specific journey in the performance of the duties.

If an employer permanently relocates then by definition the normal place of work changes, as does the employment contract between the parties (whether written or implied). The employee will never be required to work at that old location again.

Depending on where people live relative to the new and old locations, the cost to some of commuting may reduce and the cost to others may rise. But regardless, the cost to all is still a cost of getting to work, not a cost of travelling while working.
 
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Jon Snow said:
Joe, I normally agree with what you post, but this is just not right (unless you mean it could be argued and lost!).

A "normal place of work" is a concept that exists only within a Revenue statement of practice for the operation of a concession allowing tax free reimbursement.

The statutory test that underpins this concession is the question of whether the holder of an employment is obliged to incur the cost of a specific journey in the performance of the duties.

If an employer permanently relocates then by definition the normal place of work changes, as does the employment contract between the parties (whether written or implied). The employee will never be required to work at that old location again.

Depending on where people live relative to the new and old locations, the cost to some of commuting may reduce and the cost to others may rise. But regardless, the cost to all is still a cost of getting to work, not a cost of travelling while working.
Click to expand...
Thanks for the advise ,as a 53 yr old would putting everything except the tax free voucher into my pension be advisable?
 
Joe_90 said:
33km x 2 = 66km x.23 = 15.18 per day x 230 = €3,491 pa.

It could be argued that your normal place of work was the previous premises and you are required to travel to the new premises as as part of your job and therefore the payment is tax free.
Click to expand...

It could also be argued that the Earth is flat...but neither argument is sustainable.
 
I like a good discussion in these topics.

Say my boss decides that business is great and he wants to open a new office in a town (Town B) 50k from where I currently work. I have worked here in town A for 10 years. My normal place of work is town A and now my employer is taking me from my normal place of work to somewhere else. Am I entitled to mileage in this circumstance.

Clearly if I was taken on to work in town B or only worked in town A temporally then it's not my normal place of work and I live on the opposite side to town A to Town B so the distance is further.

Obviously a hypothetical question in my case.
 
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