Car Mileage & Motor Expenses — Ireland Tax Rules
Claim motor expenses using Revenue's civil service mileage rates or actual running costs.
Claimable: Partially claimable · Tax authority: Revenue
Revenue Rules
- Sole traders can use Revenue's civil service mileage rates for business travel.
- Current rates: 59.07c/km for first 1,500 km, then 26.85c/km (higher rates apply for larger engines and electric vehicles).
- Alternatively, claim actual motor expenses (fuel, insurance, tax, repairs) apportioned for business use.
- Commuting from home to a fixed place of work is NOT deductible.
Limits
Mileage rates vary by engine size and distance band. No cap on business kilometres claimed.
Worked Example
Liam drives 10,000 business km. First 1,500 km at 59.07c/km = €886.05, remaining 8,500 km at 26.85c/km = €2282.25. Total claim: €3168.30.
Record Keeping
- Maintain a mileage log: date, destination, purpose, kilometres
- Keep fuel receipts if using actual cost method
- Record engine size and type (petrol/diesel/electric) for correct rate
- Separate business travel from personal/commuting journeys
Frequently Asked Questions
Which is better — mileage rates or actual costs?
Mileage rates are simpler. Actual costs may be better if you have high mileage or significant repair bills. You cannot switch methods mid-year.
Can I claim mileage for an electric vehicle?
Yes. Revenue has specific mileage rates for electric vehicles. Check the current civil service rates for the latest figures.
Is my daily commute claimable?
No. Travel between home and a regular fixed workplace is personal commuting. Travel to temporary client sites from home is claimable.
Can I claim motor expenses for a van instead of a car?
Yes. Vans and commercial vehicles follow similar rules — you can claim actual running costs (fuel, insurance, NCT, repairs, road tax) apportioned for business use, or use the civil service vehicle rates. If the van is used exclusively for business, claim 100% of actual running costs and no personal mileage adjustment is needed.