Revenue changes to rules for Subsistence Expenses payments Changes have been made which affect the rules for paying tax free subsistence expenses to employees. The distance from the home of the employee or the normal place of work is now an important consideration in addition to the time spent away. The distance requirements provide that: 1. an overnight allowance which covers a period of up to 24 hours from the time of departure, as well as any further period not exceeding 5 hours, will only be payable free of tax in respect of an absence which is necessarily spent overnight at least 100km away from the employee’s home and normal place of work and 2. a day allowance, which applies to a continuous absence of 5 hours or more, will only be payable free of tax where the absence is not at a place within 8 km (as opposed to 5 km) of the employee’s home or normal place of work. The changes affect subsistence payments made to employees and directors and are effective from 1st July 2015. See the link to the Revenue e-brief here: http://www.revenue.ie/en/practitioner/ebrief/2015/no-632015.html
Revenue changes to rules for Subsistence Expenses payments Changes have been made which affect the rules for paying tax free subsistence expenses to employees. The distance from the home of the employee or the normal place of work is now an important consideration in addition to the time spent away. The distance requirements provide that: 1. an overnight allowance which covers a period of up to 24 hours from the time of departure, as well as any further period not exceeding 5 hours, will only be payable free of tax in respect of an absence which is necessarily spent overnight at least 100km away from the employee’s home and normal place of work and 2. a day allowance, which applies to a continuous absence of 5 hours or more, will only be payable free of tax where the absence is not at a place within 8 km (as opposed to 5 km) of the employee’s home or normal place of work. The changes affect subsistence payments made to employees and directors and are effective from 1st July 2015. See the link to the Revenue e-brief here: http://www.revenue.ie/en/practitioner/ebrief/2015/no-632015.html
Reimbursement-of-Subsistence-Expenses.docx