If you're personally going to go to conferences, seminars or another work related events then you're incurring expenses on behalf of your employer. A failing to properly report and declare of these costs often means that you're effectively having to pay more tax than required under law. The current best rateof profits tax and universal social charge should incentivise individuals to be self-disciplined in terms of correctly documenting and claiming their expenses.
Tax Concept
S114 TCA offers an employee or overseer may claim a discount in respect of costs "wholly solely and always" incurred within the overall performance from the duties of their employer.
Purely speaking, when the company pays for these types of costs then these payments are taxable pursuant to S117 TCA. Even so, Income statement of practice cited beneath permits re-imbursements to become overlooked from the employees emoluments for the purpose of PAYE.
Revenue have strict guidelines on the declaring of travel expenses which set out within the statement of practice mentioned previously SP IT/2/07 (see www.revenue.ie ) which is a 20 page document! Clearly a widespread abuse from the declaring of travel expenses could cause significant erosion from the income tax statements.
Claiming in exercise
The Revenue Commissioners will accept a reimbursement of actual costs and two kinds of flat price schemes which are available to employees and directors (but not self employed): -
(1) Civil service rates; and
(2) A set price based on another routine that does not reimburse the employee any much more than the real costs always incurred.
The easiest option is to choose the civil service rates.
An employee would be expected to keep a report displaying for each business journey:
a) the date from the journey;
b) the reason behind the journey;
c) the mileage;
d) details of starting place and finishing point;
e) the foundation for reimbursement.
All of these items can be calculated with out reference to the vehicle mileage time clock by using websites for example www.mapmiles.com (this offers the civil service prices) or google maps.
The civil service prices
It may be discovered in the circular no. 7 of 2009 http://finance.gov.ie/documents/circulars/circular2009/circ072009.pdf