Taxation of Expenses

I have been seconded by my employer to another location 50 miles from my base for the next 12/18 months.

I am being paid subsistence expenses & out of this, I have had to rent a flat, cover my meals, travelling back home at weekends etc.

My difficulty is that I am being taxed fully on all of the expenses by my employer, right from the start.

Surely this is wrong - because I am actually out of pocket, once the tax, prsi & levies have been deducted.

Any opinions or advice as to whom I could contact in the Revenue would be appreciated.

According to our accountant as work, the strict definition of tax law is that expenses must be taxed and you claim them back at the end of the year.

Revenue can and do give employers permission to give untaxed expenses, in certain circumstances. Its fairly normal for this to happen, I have never heard of anyone being taxed on their expenses. however, Revenue do make sure that companies are not using expenses to pay people under the table and avoid tax.

I dont know if your company are unaware of this, or have not been given or have not asked for permission to give you untaxed expenses.

If you ask your accoutant at work why they will not or cannot give you your expenses untaxed. Also contact you local Revenue office and ask them.

I am only guessing, but could it be, that 50 miles away of not far enough away for Revenue to consider it legitimate expenses ?

Thanks, Huskerdu. I have written to esepaye@revenue.ie for their ruling. No go with my Employer - they just tax everyone 100% from the outset - easier for them, I suppose - no comeback from the Revenue etc.

The attached may help
http://www.revenue.ie/en/tax/it/employee-expenses.html

Thanks Mpsox - this seems to confirm that I have to pay full tax.

I don't agree that tax is correctly payable on the expenses.

Download SP - IT/2/2007 from here and read Chapter 3 and 4. In relation to your circumstances, section 4.7 is particularly relevant IMHO.

It depends on the sector.
If you are employed in a construction related sector where you do not have a fixed place of work normal mileage and subsistance does not apply.
If you have a fixed place of work eg an office and you are required to work somewhere else you are entitled to mileage and subsistence at civil service rates paid tax free.