How Businesses in Ireland Can Benefit from Tax-Free Travel Allowance?

Tax-free travel allowance let employers in Ireland easily reimburse business travel expenses incurred by employees when travelling outside their normal place of work. These expenses include travel and subsistence like mileage, meals and accommodation.

Something unexpected happened during the remote work revolution: business travel didn't disappear; it evolved. The business travel market is expected to hit $829.5 billion by 2027, proving that even in our digital-first world, face-to-face business interactions remain irreplaceable.

The truth is, business travel is essential for growth. It opens doors to new markets, leads to unique opportunities, and helps companies expand their footprint. However, many employers hesitate to encourage it, fearing unexpected tax liabilities and the added complexity of managing expenses.

For Irish employers, this is where tax-free travel allowances come in. Ireland's tax system provides clear guidelines for businesses to spend on travel and reimburse their employees without incurring additional tax liabilities. Tax-free travel allowances are a significant relief for employers seeking to expand their business through business travel.

The problem isn't the system, it's awareness. Many employers overlook these benefits because they are unaware of how Ireland's tax-free travel provisions work. Let's break down everything you need to know about compliance and implementation.

Who Is Eligible To Receive Tax-Free Travel Allowances?

Employees who travel outside their normal place of work as part of their job duties are eligible to receive tax-free travel allowances. However, determining what constitutes "normal place of work" requires consideration, as it varies significantly across different employment situations.

Revenue defines the normal place of work for an employee where they carry out their work on a day-to-day basis, which may not always be the employee's base location. This means, for companies with multiple offices, different employees will have different normal places of work.

What Qualifies As Business Travel?

Business travel occurs when employees move between different work locations as part of their job duties:

• Travel between Ireland and other countries for business purposes
• Journeys to any location that isn't their established normal place of work
• Movement between different company offices or client sites

What Are The Tax-Free Travel Allowances For Employees In Ireland?

Tax-free travel allowances are reimbursements that employers can provide to employees for the expenses they incur on a business trip without creating any tax liabilities for either party.

Two types of business travel expenses qualify for tax-free allowance:

1. Transportation Expenses

Transportation expenses cover the cost of getting from one location to another for business purposes. Transportation expenses include flights, trains, buses, taxis, or even when employees use their own vehicle for business travel.

2. Subsistence Expenses

Subsistence expenses cover meals and accommodation costs when employees are away from their normal place of work for business purposes. These expenses should be directly related to business travel.

How Can Employers Reimburse Travel Expenses Tax-Free?

Revenue offers employers multiple options for providing tax-free reimbursements. They can choose the method that suits them the best. The reimbursement rates vary depending on the type of expenses that are incurred.

For Transportation Expenses: When employees use their own vehicle for business journeys, employers can reimburse them tax-free in three ways:

1. Civil Service Rates: Pay per kilometre based on Civil Service Rates (Revenue's approved schedule)

2. Other Rates: Pay through other rates set by the company, provided it does not exceed Revenue's rates.

3. Actual Costs: Repay actual costs incurred by the employee, but only if:

• The employee was required to incur the expenses to perform their duties
• Repayments are supported by proper receipts

For Subsistence Expenses: Similarly, employers can reimburse subsistence expenses in 3 ways:

1. Pay daily or overnight allowance as per Civil Service Subsistence Rates

2. Employers may use other rates, provided it does not exceed Revenue's limit

3. Repay actual costs, provided expenses were incurred necessarily for work and are supported with receipts.

What Are The Mileage Reimbursement Rates In Ireland?

Mileage reimbursement rates depend on the type of vehicle, engine size, and distance travelled for business purposes. These rates are set by Revenue and are as follows as of August, 2025:

Car (rate per kilometre)

Motorcycle (rate per kilometre)

Bicycle Rates

What Are The Current Revenue Subsistence Rates In Ireland?

As of August 2025, Civil Service Subsistence Rates for overnight allowance are:

For Domestic allowance, employers can reimburse:

• Day subsistence (5 hours): €19.25
• Day subsistence (10 hours): €46.17

For business travels over 56 nights, employers need to make an application to Revenue to confirm if subsistence is still available.

How Can Businesses Manage Tax-free Travel Allowances More Efficiently?

Managing travel allowances can become complex very fast for HRs and Admins. From logging mileage manually to tracking receipts.

CleverCards simplifies this process by offering a pre-loaded Travel Card that gives businesses complete control and visibility. Here's how CleverCards makes managing tax-free travel allowances easy:

• Send employees a digital card instantly via email
• These are preloaded Mastercards that can be paused or cancelled anytime through the CleverCards dashboard
• Configure spend limits, date, and spend category
• Track spending and balance in real-time to stay within budget

Fill out the form below to learn how CleverCards can streamline your company's travel allowances.