Short term lettings of free space in houses through websites such as Airbnb has soared in the last few years. Initially there was confusion as to whether income from letting a room in your own home on a short term basis could qualify for an exemption from Income Tax under Rent a Room Relief. Revenue has confirmed that short term lettings advertised through online accommodation sites do not qualify for Rent a Room Relief.

The Department of Public Expenditure and Reform has announced ​a change to the civil service mileage and subsistence rates. With the new mileage rates there is an additional “band”. Previously there was a rate for the first 6,437km and a reduced rate for every kilometre after that. Now there is a band from 0 – 1,500km, 1,501 – 5,500km, 5,501 – 25,000km and above. The rates for each band are included in the circular we have enclosed. The overnight rates have also been changed for subsistence. However the daily rates have not.

These new rates and bands come into effect from 1 April 2017. Make sure to update your systems for yourself and employees. However before you make any changes ensure you fully review IT51 and IT54 from the Revenue’s website for all of the rules in relation to mileage and subsistence claims.

If you have any queries please do not hesitate to contact us. We hope you have a great Easter.

Circular on mileage

Circular on subsistence