Mileage / KM allowance

J

jennifer999

Registered User
Messages
16
Hi,

Im starting a new role with my existing employer that means I have to travel as part of my job. Not much info has been advised other than my expenses will be covered.

Ive been looking at the revenue site which advised that you can look for mileage/kilometric allowance of approx 61cents per KM.

However the Q I have is......does this allowance cover the wear and tear on your car or do you look for an extra allowance for that also?

Cheers
 
Ok, 61c/Km
€6.10 / 10Km
€6.10 = approx 5 L of Petrol (@ €1.22/L)
5L will easily get an average modern (or even 10 year old) car 40-50Km so I think you're doing pretty well as it is, mileage-wise, without looking for more.

If you do 500Kms, you'll get €305.
Assuming 50Km/Gallon (a conservative estimate as that's poor enough mileage nowadays) you'll need 10 Gallons, or 45.5 litres.
Again, assuming 1.22/l, you will pay €55.51

This leaves you with a profit of €250 for 500kms.
€500 would be the price for an average annual service including service parts.
So 1000kms for your employer will pay for an annual service due every 12-15000 kms.

Not a bad deal, I'm sure you agree and one that should satisfy you without looking for any more on top of that for 'wear and tear'.
 
IME, there is no additional allowance other than the "mileage" rate tied to engine capacity or emissions levels.

Your employer will expect you to sign a form indemnifying them against any motor accidents you might have in the course of your duties and your insurers will also have to be informed that your car is used for business travel purposes - Class 1 business use, I think.

All of the above assumes your employer will use the Revenue-approved rates and has Revenue permission to pay these expenses tax-free.
 
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