Expenses / Subsistence Allowances

Just wondering if any of the experts out there can throw any light on to whether the above liable for tax. I'm asking as I'm currently receiving a daily subsistence allowance from my employer (civil service rate of €41.55/day) as I'm working in a location away from my regular place of employment, I'm basically on secondment for a period of 3 years. Rumour has it that I'm going to get taxed on this amount soon, is this correct.

Yes, this is correct. Round-sum expenses payments are treated as pay and taxed accordingly.
See this link : [broken link removed]

The following is an extract from the [broken link removed] mentioned by tenacious above:

• SUBSISTENCE ALLOWANCES
  
  Please see [broken link removed] for full details regarding subsistence rates for absences within the State, absences outside the state and the rules, etc. in relation to the application of these rates.
  Employers are reminded that round-sum subsistence expenses payments are taxable in full and must be treated as pay. Please see earlier paragraph 'Round-Sum Expenses'.
  Payments by an employer which do no more than re-imburse an employee for allowable subsistence expenses which were actually incurred, may be made tax-free in certain circumstances, in accordance with legislation. The expenses concerned must have been incurred "wholly, exclusively and necessarily" in the performance of the duties of the employment.
  
  Re-imbursement of allowable subsistence expenses either by Flat-Rate allowances or vouched expenses
  
  Where an employee performs the duties of the employment while temporarily away from his/her normal place of work or is working abroad on a foreign assignment, allowable subsistence expenses can be re-imbursed by the employer on the basis of:
• Acceptable flat-rate allowances (Civil Service rates or Re-imbursement of subsistence expenses based on any other schedule of rates and related conditions (e.g. "[broken link removed]" in the Construction Industry) which do no more than re-imburse the employee for actual expenditure incurred) or
• Actual expenses which have been vouched with receipts.
  
  Reference Material:
  
  [broken link removed]
  This leaflet covers re-imbursement of Subsistence Expenses to employees.

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The €41.55 is the day allowance as of July 06. You would need to check the rules governing the payment of the day allwance as it applies in your case.

I'm basically on secondment for a period of 3 years.

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On the face of it you are permanently at the new location and as such will be taxed on any allowances you recieve.

You should consider your position from a self employed perspective through the mechanism of your own Company.