Personal car use for work

[Karen]

I put a lot of mileage on my car for work, +20,000 per year. I am paid mileage at the civil service rate which I do not think covers my costs. Is there a better way to do this. I work for a small company.

 

[Joe_90]

20,000 Kms per annum at civil service rates amounts to 6,437 x 59.07c + 13,563 x 28.46c = €7,662.

Expenses
Motor tax 500
Insurance 300
Fuel (30 mpg) 20,000kms @ 11 km per litre x 1.36 per litre = €2,472
Service 1500
Depreciation €2,500

It could be argued that you have to tax and insure the car, it will depreciate either way and will have to be serviced so probably works out about even.

 

[mathepac]

What are your costs vs. your allowances?

Which civil service rate is your employer using?

 

[pudds]

Worth noting that If your car is only insured for Social Domestic and Pleasure purposes then if you have an accident when using it for work purposes, then you maybe in a spot of bother with your insurer.

 

[mathepac]

Most places paying mileage to employees insist on an indemnity from the employee's
insurer.

 

[Jon Snow]

To answer the OP's question, the alternative to receiving those mileage expenses tax free is to tell your employer that you want them to apply the statutory treatment (as opposed to the Revenue concession which allows tax free reimbursement), in which case they would treat the mileage payments as taxable pay and deduct PAYE, USC & PRSI.

Then the OP can file a tax return and make a claim for a deduction under section 114 for expenses incurred in employment, which will require her to retain and provide records of the specific expenditures, and be able to prove the claimed amount doesn't include any personal element.

So the short answer is, unless diesel prices go through the roof without a corresponding change in civil service mileage rate - no, there isn't a better/easier way to do it, because as Joe has illustrated you're probably coming out marginally ahead as things stand.