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Benefit in Kind

Cars

Cash equivalent - 30% of original market value. With effect from 1 January 2004, BIK will be calculated on 30% of the open market value of the car with no reduction for amounts borne by the employee in respect of the car costs.

The percentage which is now applied to the open market value of the company car will be determined based only on business mileage as follows:

Business Mileage

% of OMV

15,000 or less

30%

15,001-20,000

24%

20,001-25,000

18%

25,001-30,000

12%

Over 30,000

6%



Vans

The charge to BIK for the private use of an employer’s van will be calculated at 5% of the ‘original market value’ of the van with effect from 1 January 2004.


Concession: There will not be a charge to tax in respect of a company van where all of the four conditions below are met:

The van provided is essential for the purposes of the job

- The employer requires that the employee brings the van home

- Any private use (other than travelling to and from work is prohibited), and

- Most of the working day (80%) is spent away from the employer's premises.


Preferential Loans

Specified rate for home loans from 1 January 2008

5.5% (Previously 4.5%)

Specified rate for other loans from 1 January 2008

13% (Previously 12%)


Note: With effect from 1 January 2004 PAYE, PRSI and Health Contributions will be deducted from salary by the employer, in respect of the taxable value of most benefits.

An employer can provide an employee with a small benefit to a value not exceeding €250 without applying PAYE and PRSI to that benefit.


Disclaimer:
Whilst every effort has been made to ensure the accuracy and reliability of the information published within this website, you choose to use this information and rely on any results at your own risk. We will not under any circumstances accept responsibility or liability for any losses that may arise from a decision that you may make from the use of, or reliance on this information.