Can I Claim Mileage / Motor Expenses as a Business Expense in Ireland?
Yes — Irish employers can pay employees Civil Service mileage rates tax-free for business journeys. Sole traders and companies can also claim actual motor running costs apportioned for business use.
What Revenue (Revenue Commissioners) says
Revenue accepts the Civil Service mileage rates as the maximum tax-free amount paid to employees using their own car. Bands (effective 1 September 2022): up to 1,200cc Band 1 41.80c/km (first 1,500km) etc. Sole traders can alternatively claim actual costs (fuel, insurance, tax, repairs, depreciation) apportioned by business %.
When you can claim
- Civil Service mileage rates paid by employer (most common, tax-free)
- Actual costs (fuel, insurance, tax, services) apportioned by business mileage
- Capital allowance on company car (12.5% per year, capped at €24,000 for cars by emissions)
- Tolls and parking on business journeys
When you cannot claim
- Commuting from home to a regular workplace
- Fines and parking penalties
- Personal use portion of any costs
- Mileage payments above Civil Service rates (excess is taxable)
Good to know
Pro tip: Keep a mileage log with date, journey, purpose and km. Revenue audits typically focus on this. AccountsOS auto-categorises trips from your phone's location data.
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