Good news from Revenue doesn’t come often! So the new increased motor and subsistence rates announced by Revenue effective 1 April 2017 are welcome. The increase in the rates came without much advance warning.
The motor travel rates apply where company employees use their private vehicles for business purposes.
Motor Rates Key changes:
Distance bands increased from 2 to 4, which may benefit workers who do a great deal of driving for business.
Lower rate for the first 1,500km.
Increased rate from 1,500 to 5,000km which will benefit those who do a lot of business driving.
More beneficial compensation rates for cars with lower engine sizes and emissions.
Changes to the mileage formula apply and rates will be locked in for a period of 3 years.