Travel and subsistence expenses that businesses can claim.

Travel expenses

The central test of deductibility used when computing assessable Case I or II profits is whether or not he expense is “wholly and exclusively laid out or expended for the purposes of the trade or profession.

It is important to note that Revenue will not accept deductions for travel or subsistence expenses of sole traders based on the civil service rates.

Sole traders will include all of their travel expenses in their business accounts. They will ‘add-back’ a portion to remove the cost of personal usage.

The reimbursement of employees is in line with the civil services rates (in accordance with IT51 or IT54). It will be accepted by Revenue as an expense incurred wholly & exclusively for the purposes of the employer’s trade.

Food and accommodation expenses

 The test is whether the exclusive purpose of the expenditure was business. Any private benefit to the taxpayers was purely incidental.