Questions and Answers

Claiming Travel and Subsistence according to Civil Servant Rates

Q: I am a director of my own limited company and I am on the only employee, I have heard recently that I can claim travel and subsistence according to civil servant rates, is this correct and how does it work?   A: Yes, there are two ways that employers can reimburse employees for business expenses incurred without deducting PAYE from the payments made in two situations: (i) Where the payments are made based on vouched receipts provided by the employee; or (ii) Where flat rate allowances are paid which do not exceed the rates paid to Civil Servants.  The civil servant rates are quite generous and in some instances can exceed actual expenditure incurred. They also give peace of mind to the claimant as they do not require prior Revenue approval. If you choose vouched expenditure or civil servant rates, in both case make sure to keep sufficient records, such as expense claim forms, receipts, printouts of mileage travelled etc.