Allowable Motor Expense Rates (2017)
Revenue amended the rates for claiming motoring expenses with effect from April 1, 2017.
Given that most businesses use these rates as the basis for Revenue-approved motor expense claims for businesses, you should be aware of the changes.
The key changes are:
- They have increased the number of distance bands from two to four
- They have changed the rates
- The starting rate is now lower than the old starting rate
- The second rate is higher than the old bottom rate
- The third rate is higher than the old top rate
- The fourth rate, the new top rate is lower than the old top rate.
New Motor Expenses Rates and Bands
| Band | Engine Size | Up to 1200cc Rate € per Km | 1201cc to 1500cc Rate € per Km | 1501cc and over Rate € per Km |
| Band 1 | 0 – 1,500Km | 0.3795 | 0.3986 | 0.4479 |
| Band 2 | 1,501-5,500 Km | 0.7000 | 0.7321 | 0.8353 |
| Band 3 | 5,501-25,000 Km | 0.2755 | 0.2903 | 0.3221 |
| Band 4 | 5,501-25,000 Km | 0.2136 | 0.2223 | 0.2585 |
Implementation of Motor Expense Rate Changes
Motor Expenses for travel between Jan 1 and Mar 31, 2017 should be calculated using the old rates. After April 1, you then calculate rates based on the cumulative distance travelled from Jan 1 but using the new bands and rates.
The previous Motor Expense Rates (up to Mar 31, 2017)
| Engine Size | Up to 1200cc | 1201cc to 1500 cc | 1501cc and higher |
| Rate – € per Km | Rate – € per Km | Rate – € Per Km | |
| Up to 6437km | 0.3912 | 0.4625 | .5907 |
| 6438 km and above | 0.2122 | 0.2362 | 0.2646 |
For further information, go to the revenue website here