Irish Revenue Mileage Rules - Sole Traders vs Employees Explained

Mileage and vehicle expense claims in Ireland come with a rule that catches many sole traders out: the Revenue civil service flat rates do not apply to self-employed people. If you are a sole trader, you cannot use the per-kilometre rates you see on Revenue.ie for civil servants and employees. You must use the actual expenses method instead.

This guide explains both methods, who can use each one, the current Revenue civil service rates for employees and company directors, what counts as a business journey, and what records Revenue expects you to keep.

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Two methods, not one

Revenue allows two completely separate approaches to vehicle expense claims. Which one applies to you depends on your employment status, not your preference.

Sole traders and self-employed: actual expenses method

If you work for yourself as a sole trader, you claim the actual costs of running your vehicle and apply your business use percentage. The steps are:

1. Add up every vehicle cost for the year: fuel, insurance, servicing, NCT, road tax, breakdown cover, and depreciation (capital allowances).
2. Divide your business km by your total km to get your business use percentage.
3. Claim that percentage of your total vehicle costs as a deductible expense on your Form 11.

You cannot switch to civil service rates just because they give a higher result. Revenue is explicit: the flat rates are not available to self-employed individuals. The only exception is if you are both a sole trader and an employee of another business - in which case the flat rates apply only to your employee mileage, not your self-employed mileage.

Employees and company directors: civil service rates

If you are on a PAYE payroll - or a company director drawing expenses from your limited company - you can use Revenue's approved civil service mileage rates. These are fixed per-kilometre amounts that decrease as your annual business km increase. Your employer (or your own company) reimburses you at these rates, and the reimbursement is tax-free.

If your employer reimburses at a rate below the civil service rate, you can claim the shortfall as a deduction on your tax return. If they pay above the civil service rate, the excess is treated as taxable income.

Revenue civil service mileage rates (current)

The current rates are effective from 1 September 2022. They are tiered by engine size (cc) and annual business km across four distance bands. One important feature catches people out: the rate for 1,501-5,500 km is higher than the rate for the first 1,500 km. This is intentional Revenue policy to compensate employees who do a medium amount of business travel. The rate then decreases significantly for higher mileage.

Rates apply to the km driven within each band, not to all km once a threshold is crossed. Fully electric vehicles use the 1,201cc - 1,500cc rate. Hybrid vehicles use their equivalent internal combustion engine capacity rate.

Up to 1,200cc

• Up to 1,500 km: 41.80¢/km (€0.4180)
• 1,501 - 5,500 km: 72.64¢/km (€0.7264) - highest rate
• 5,501 - 25,000 km: 31.78¢/km (€0.3178)
• Over 25,000 km: 20.56¢/km (€0.2056)

1,201cc to 1,500cc (and fully electric vehicles)

• Up to 1,500 km: 43.40¢/km (€0.4340)
• 1,501 - 5,500 km: 79.18¢/km (€0.7918) - highest rate
• 5,501 - 25,000 km: 31.79¢/km (€0.3179)
• Over 25,000 km: 23.85¢/km (€0.2385)

1,501cc and over

• Up to 1,500 km: 51.82¢/km (€0.5182)
• 1,501 - 5,500 km: 90.63¢/km (€0.9063) - highest rate
• 5,501 - 25,000 km: 39.22¢/km (€0.3922)
• Over 25,000 km: 25.87¢/km (€0.2587)

These rates are effective from 1 September 2022. Revenue updates them periodically. Always verify the current rates at Revenue.ie before filing your return or setting a company reimbursement policy.

What counts as a business journey in Ireland?

Revenue uses the same principle as most tax authorities: a journey is a business journey only if it is wholly and exclusively for the purposes of the business.

Business journeys include:

• Travel from your base of operations to a job site or client location
• Journeys to suppliers, builders' merchants, or trade counters to collect materials
• Travel to meet a client to quote a job
• Journeys to attend work-related training courses
• Travel between job sites on the same day

Journeys that do not count as business travel:

• Your daily commute from home to your regular place of work or fixed base
• Personal errands mixed into a business journey (the personal portion is excluded)
• Journeys with no clear business purpose

The home-to-work rule catches many tradesmen. If you drive from your home to your yard or depot every morning before going to job sites, that first leg is a commute and is not deductible. The journey from your yard to the job site is a business journey. If you drive directly from home to a client site, that journey is a business journey - but only if your home is genuinely your base of operations, not just the starting point of your commute.

What vehicle expenses can a sole trader claim?

As a sole trader, you claim actual vehicle running costs in proportion to your business use. The allowable expenses are:

• Fuel: Include all fuel costs for the year, then apply your business use percentage.
• Motor insurance: Your full annual premium, multiplied by business use percentage.
• Servicing and repairs: All invoices for routine service, repairs, and tyres.
• NCT: The fee is fully claimable at your business use percentage.
• Road tax (motor tax): Include the full annual amount.
• Breakdown cover: AA, RAC or similar subscriptions.
• Capital allowances: You cannot deduct the vehicle purchase price in one year. Instead, you claim 12.5% of the original cost per year over 8 years (or the written down value if you bought used). For vehicles over a certain CO2 threshold, a cap applies.

Parking fees and tolls incurred on business journeys are claimed separately as 100% deductible - you do not apply the business use percentage to these. Keep the receipts.

How to claim on Form 11 in Ireland

Sole traders file their tax return on Form 11 through Revenue Online Service (ROS). Vehicle expenses are entered in the Capital allowances and expenses section.

The process is:

1. Log in to ROS and open your Form 11 for the relevant tax year.
2. Go to the Trade, Profession or Vocation section and find Motor expenses.
3. Enter your total vehicle running costs for the year in the motor expenses field.
4. Enter your business use percentage (business km / total km × 100).
5. ROS calculates the deductible amount and applies it to your taxable income automatically.
6. For capital allowances on the vehicle, use the Capital Allowances section to declare the vehicle and claim 12.5% per annum.

The filing deadline for Form 11 is 31 October of the year following the tax year (or mid-November if filing and paying through ROS). For the 2025 tax year, that is 31 October 2026 (or the ROS extension date).

What records does Revenue require?

Revenue can audit your mileage and vehicle expense claim for up to 6 years from the end of the tax year in question. You need to be able to produce:

• A mileage log showing: date, start location, destination, purpose of the journey, and km driven. This must be contemporaneous - written at the time of travel, not reconstructed later.
• Receipts for all vehicle running costs: fuel (use a fuel card or keep receipts), insurance, servicing, NCT, road tax.
• For capital allowances: the original purchase invoice or finance agreement for the vehicle.

A spreadsheet, mileage app, or even a paper logbook kept in the van is all acceptable. The key requirement is that it is updated in real time and contains the information above. If Revenue audits you and you cannot produce a contemporaneous log, your vehicle expense claim can be disallowed entirely.

Use the mileage log tool to build and download a digital log, or print the printable template to keep in your vehicle.

Frequently asked questions

Can a sole trader use the civil service mileage rates in Ireland?

No. Revenue's civil service flat rates are for employees and company directors only. Sole traders must use the actual vehicle expenses method: add up all your vehicle running costs for the year and multiply by your business use percentage (business km / total km). You cannot use the flat rates even if they would produce a larger claim.

What is the difference between the HMRC mileage rate and Irish Revenue rates?

In the UK, HMRC allows sole traders to claim a flat rate of 55p per mile (first 10,000 miles, then 25p) using the simplified expenses method. This is available to self-employed people and makes record-keeping simple. In Ireland, Revenue does not offer an equivalent flat-rate simplified method for sole traders - you must use actual expenses. See the HMRC mileage calculator for the UK rates.

Do I have to keep a mileage log as a sole trader in Ireland?

Yes. Revenue expects contemporaneous records of your business journeys. Without a mileage log, Revenue cannot verify your business use percentage and may disallow your vehicle expense claim on audit. The log must include the date, start and end location, purpose of the journey, and km driven. Keep records for 6 years.

What engine size band is most common for Irish tradesmen?

Most vans used by Irish tradesmen have engines of 1,501cc and over (the highest Revenue band). Diesel vans from Ford Transit, Volkswagen Transporter, and Mercedes Sprinter typically fall into this category. The rate for this band starts at 51.82¢/km for the first 1,500 km of business travel, rises to 90.63¢/km for 1,501-5,500 km, then drops to 39.22¢/km above that. Check your vehicle's registration certificate (logbook) for the exact engine size.

Can I claim mileage for travelling to price a job?

Yes, if you drive to a customer's location to price or survey a job, that is a business journey. The same applies if you travel to a supplier to order materials for a specific job. Keep a record of these journeys in your mileage log in the same way as journeys to job sites.