Travel Expenses for Delivery & Logistics Companies in Ireland
No sector burns through Revenue's progressive mileage bands faster than delivery and logistics. A multi-drop courier or distribution driver covering 1,200–1,500 business km a week exhausts Band 1 in their first week and crosses into Band 3 — where the per-km rate more than halves — within five or six weeks. Get the band wrong and you either underpay drivers or, more commonly, overpay them and create a taxable excess that Revenue can claw back.
This guide covers how the cumulative bands work for high-mileage drivers, overnight and detention subsistence for long-haul and multi-day runs, when mileage applies to a van versus a personal car, and how to track each driver's year-to-date distance so the correct band is always applied. Motor rates are Revenue's civil service rates effective 1 September 2022; domestic subsistence rates effective 29 January 2025 — both verified current as of June 2026.
How Delivery & Logistics Drivers Travel
Multi-drop courier rounds
A driver doing 40–80 drops a day across a region. Short legs between stops, but cumulative daily distance of 200–300 km. By the end of week one they've used up Band 1; within six weeks they're in Band 3 at less than half the rate.
Long-haul and multi-day trunking
A driver running Dublin to Cork, Kerry, or cross-border, away overnight or for several days. Both mileage (if their own vehicle) and overnight subsistence apply, with the 100 km rule and the 56-night limit to watch.
Regional distribution and depot transfers
Shuttling stock between a central depot and regional hubs. Long, repetitive daily returns that pile up cumulative kilometres quickly — and long days that often pass the 10-hour threshold for day subsistence (€46.17).
Last-mile own-car couriers
Relief drivers and subcontracted-style employees using their own car for deliveries. This is where civil service mileage genuinely applies — and where the "lesser of" rule matters when they start the round from home rather than the depot.
Cross-border and international runs
Drivers crossing into Northern Ireland or onto the Continent. Domestic mileage bands work the same way, but overnight subsistence switches to country-specific international rates rather than the €205.53 domestic figure.
Why High-Mileage Drivers Hit the Bands Fast
Revenue's car mileage rates use four progressive distance bands. The band you're in depends on your cumulative business kilometres for the year so far — not on any single trip. Crucially, the rate falls as distance rises: the high Band 1 and Band 2 rates are meant to cover the fixed running costs of a car over a normal year of business use. A driver who covers those kilometres in a few weeks moves into the much lower Band 3 and Band 4 rates almost immediately.
| Distance Band | Up to 1,200cc | 1,201–1,500cc | Over 1,500cc |
|---|---|---|---|
| Band 1: 0 – 1,500 km | €0.4180 | €0.4340 | €0.5182 |
| Band 2: 1,501 – 5,500 km | €0.7264 | €0.7918 | €0.9063 |
| Band 3: 5,501 – 25,000 km | €0.3178 | €0.3179 | €0.3922 |
| Band 4: 25,001 km + | €0.2056 | €0.2385 | €0.2587 |
Revenue civil service motor travel rates, effective 1 September 2022. Electric and plug-in hybrid vehicles use the 1,201–1,500cc column. For motorcycle, bicycle, and reduced rates, see the full Civil Service Mileage Rates guide.
- • Band 1 (first 1,500 km) — gone in just over one week.
- • Band 2 (1,501–5,500 km) — exhausted by roughly week five.
- • Band 3 (5,501–25,000 km) — entered around week five and runs until about May.
- • Band 4 (25,001 km+) — typically reached by around May, then held for the rest of the year.
The Band 2 → Band 3 cliff is where the money is
For an over-1,500cc car, crossing 5,500 km drops the rate from €0.9063 to €0.3922 per km. If payroll keeps paying the Band 2 rate after the crossover — because nobody is tracking cumulative distance — every kilometre is overpaid by €0.5141, and that excess is taxable pay that should have had PAYE, USC, and PRSI applied. Across a fleet of drivers each doing this, the exposure runs to thousands per month.
Worked Example: One Driver's Multi-Drop Week
Niamh — multi-drop courier, own car (1.6L diesel, over 1,500cc)
It's early February — week five of the year. Niamh's cumulative business distance entering the week is 4,900 km (she's near the top of Band 2). This week she crosses into Band 3.
The week's drops
Mon 280 km · Tue 300 km · Wed 260 km · Thu 290 km · Fri 270 km = 1,400 km. Cumulative distance ends the week at 6,300 km, so 600 km fall in Band 2 (up to 5,500) and 800 km in Band 3.
Band 2: 600 km × €0.9063 = €543.78
Band 3: 800 km × €0.3922 = €313.76
Mileage for the week: €857.54
Plus day subsistence
Two of the runs (Wednesday and Friday) keep Niamh away from base for more than 10 hours and over 100 km out, qualifying for the 10+ hour day rate.
2 × €46.17 = €92.34
If payroll missed the band crossover and paid the whole 1,400 km at the Band 2 rate: 1,400 × €0.9063 = €1,268.82 mileage. That's €411.28 overpaid in a single week for one driver — a taxable excess that should have had PAYE, USC, and PRSI deducted. Multiply by a fleet and by every week past the crossover, and it's a serious Revenue exposure.
Overnight & Detention Subsistence for Long-Haul
When a driver is away overnight on a trunk run or multi-day trip, domestic overnight subsistence applies — a flat allowance covering accommodation and meals, with no receipts required under the standard rate. To qualify, the driver must be at least 100 km from both their home and their normal place of work.
| Rate | Applies to | Per Night |
|---|---|---|
| Normal rate | First 14 nights at one location | €205.53 |
| Reduced rate | Nights 15–28 at one location | €184.98 |
| Detention rate | Nights 29–56 at one location | €102.76 |
| Day rate (10+ hours) | Long day, no overnight | €46.17 |
| Day rate (5–10 hours) | Shorter day away from base | €19.25 |
Domestic subsistence rates effective 29 January 2025. For full detail on the 100 km rule and the Dublin vouched arrangement, see our Overnight Subsistence Rates guide.
The 56-night limit on multi-day assignments
Subsistence at any one location is capped at 56 nights. Beyond that, the employer must apply to Revenue for approval to keep paying it tax-free — otherwise further payments are taxable. This matters for drivers stationed away on a long contract or seasonal route. International runs use country-specific overnight rates instead of the domestic figures above; see the cross-border travel guide.
Van vs Personal Car — When Mileage Applies
The single most common mistake in delivery and logistics is paying mileage on the wrong vehicle. Civil service mileage rates exist to reimburse an employee for using their own vehicle. They do not apply when the employer already provides the vehicle and pays for the fuel.
Company van — no mileage
If the driver uses a company-owned or leased van and the firm pays for fuel and running costs, there is no mileage claim — the cost is already covered. Paying civil service mileage on top would be taxable pay.
Any private use of the van instead falls under Benefit-in-Kind. Don't quote a BIK figure from memory — confirm the current van BIK rate on Revenue.ie, as it changes with each Finance Act.
Own car or van — mileage applies
When a driver uses their own car or van for business deliveries, civil service mileage applies, through the progressive bands above. This is the norm for relief and last-mile own-vehicle couriers.
If the employer also provides a fuel card or reimburses fuel directly, the driver cannot also claim the full mileage rate — that would double-count fuel, which the rate already includes.
Tracking Per-Driver Year-to-Date Mileage
Because the bands are cumulative and personal to each driver, the correct rate can only be applied if you know every driver's running year-to-date total. In a fleet, no two drivers are in the same place: one new starter is still in Band 1, a full-time trunk driver is already in Band 4, and a relief driver is somewhere in between. A single flat rate across the fleet is wrong for almost everyone.
Per driver, not per trip
Each driver's cumulative kilometres must roll up across every trip in the year so the band is applied to their running total — not reset every claim.
Catch the mid-week crossover
Crossovers rarely land on a tidy week boundary. A trip that pushes a driver past 5,500 km has to be split — part at Band 2, the rest at Band 3 — within the same claim.
Reset cleanly each January
Every driver's total resets to zero on 1 January, dropping them back to Band 1. The annual reset has to be reliable, or year-end claims carry into the new year at the wrong band.
How Expense.ie Helps Delivery & Logistics Firms
Automatic band tracking per driver
Every driver's year-to-date distance is tracked individually and the correct band applied automatically — including splitting a single trip that crosses the Band 2 to Band 3 cliff. No payroll spreadsheet guesswork.
Subsistence from actual times
Overnight, 10+ hour, and 5–10 hour rates are applied from each run's departure and return times, with the 100 km and 56-night rules built in — so long-haul claims are right without manual lookups.
Van vs own-car handled per driver
Set each driver's vehicle basis once. Company-van drivers don't generate mileage; own-vehicle drivers do — keeping a mixed fleet consistent and audit-ready.
ERR-ready exports every pay cycle
High-mileage fleets file frequently. Expense.ie produces the categorised ERR export each cycle, so reimbursed mileage and subsistence are reported correctly to Revenue.
Delivery & Logistics FAQ
Related Resources
Mileage Band Crossover Calculator
Split a trip across progressive bands and see the exact per-km rate.
Try calculatorCivil Service Rates Guide
All progressive band rates by engine size with worked examples.
View ratesOvernight Subsistence
Domestic overnight, reduced, and detention rates explained.
Read guideStop Overpaying on Driver Mileage
Expense.ie tracks every driver's year-to-date distance, applies the correct progressive band automatically — even mid-trip at the Band 2/3 cliff — handles overnight subsistence, and generates ERR exports every pay cycle. Built for high-mileage delivery and logistics fleets.
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