Expenses
Payroll Expenses
Business expenses incurred by employees are typically reimbursed by the employer.
Enhanced Reporting Requirements (reporting to Revenue of certain expenses paid to employees) is due to come into effect in January 2024, so now is a good time to brush up on your understanding of expenses. Here are some of the most common types of expenses in Ireland:
- Remote Working – €3.20 per day when working from home, available for 365 days per year.
- Flat Rate Expenses – claimed by employees directly from Revenue. A full list of allowed expenses for certain occupations are available here.
- Round Sum Allowances – are treated as pay and taxed like a normal salary. Examples include:
- car allowance
- fuel allowance
- phone allowance
- clothing allowance
- Travel & Subsistence – can be paid when employees are working away from their normal place of work There are five types of travel & subsistence expenses:
- Travel Expenses can be vouched (receipted costs actually incurred) or unvouched (using the Civil Service rates for car/bike travel)
- Subsistence Expenses can be vouched (receipted costs actually incurred) or unvouched (using the Civil Service rates for overnight accommodation, day allowances and overseas assignments)
- Emergency Travel is where an employee works outside their normal hours due to an emergency at work.
- Site Based Employees are employees who do not have a fixed base. They can be paid up to €181.60 per week for a maximum of 48 weeks per year. They may also be paid an Eating on Site allowance of €5 per day.
- Voluntary Workers can be paid the above expenses if the meet the conditions outlined here.
Records
Records of expenses reimbursed to employees need to be kept for 6 years after the end of the tax year. These include:
- Receipts kept for vouched expenses.
- For travel and subsistence reimbursements:
- name and address of employee
- date of the journey
- reason for the journey
- kilometres involved
- starting point, destination and finishing point of the journey
- basis for the reimbursement of travel and subsistence expenses, for example, where a worker needs an overnight stay away from home.
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