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Company Car

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  • 26-11-2007 12:17pm
    #1
    Yosserh
    Closed Accounts Posts: 89 ✭✭


    Just wondering what peoples opinion on a company car v's allowance? Which is better to go for? What is the rate of BIK on a car?
    Hope this is posted in the right section!


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    #2
    R.O.R
    Registered Users Posts: 12,675 ✭✭✭✭R.O.R


    Yosserh wrote: »
    Just wondering what peoples opinion on a company car v's allowance? Which is better to go for? What is the rate of BIK on a car?
    Hope this is posted in the right section!

    Depends on quite a lot of factors.

    What's your allowance, what car are you looking at, do you have to contribute towards it, does the company car include fuel, servicing etc..?

    BIK is worked out off the Open Market Value of the car. That's the manufacturer's recommended retail price including all the extra's, and is on a sliding scale based on how many business miles you do per annum - breakdown is:

    0-15,000 Business Miles - 30% of the value of the car
    15,001 - 20,000 Business Miles - 24%
    20,001 - 25,000 Business Miles - 18%
    25,001 - 30,000 Business Miles - 12%
    Over 30,001 Business Miles - 6%

    You have to declare at least 5,000 business miles unless you have fully documented proof.

    Commercial vehicles are BIK'd at a flat rate of 5%


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    #3
    Borzoi
    Registered Users Posts: 2,876 ✭✭✭Borzoi


    Yosserh wrote: »
    Just wondering what peoples opinion on a company car v's allowance? Which is better to go for? What is the rate of BIK on a car?
    Hope this is posted in the right section!

    As ROR has alrewady posted the rates - all you need to figure out is how much milage you'll be doing, how much of a company car alloawance they're offering and comparing the costs.


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    #4
    Golferx
    Closed Accounts Posts: 251 ✭✭Golferx


    Remember any Company Car Allowance is fully taxable so you must pay full tax and PRSI on anything you get from the company.

    In the UK, one can claim tax relief at Civil Service rates on any mileage you do, if you have an allowance, or you can claim mileage, at Civil Service rates, up to the amount of your allowance, but any mileage claim must be fully audited, you must be able to back it up.

    If you are doing 30,000 miles per year, then a company car is the best way to go. If you are doing less than 15,000 miles per year, then an allowance is the way to go. In between, it's up to you to do the maths and work it out.


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    #5
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,204 Mod ✭✭✭✭godtabh


    Golferx wrote: »

    Remember any Company Car Allowance is fully taxable so you must pay full tax and PRSI on anything you get from the company.

    If you put milage down as an expense as a result of using your own car you dont get taxed


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    #6
    Golferx
    Closed Accounts Posts: 251 ✭✭Golferx


    kearnsr wrote: »
    If you put milage down as an expense as a result of using your own car you dont get taxed

    If you get a fixed amount each month then it is fully taxable, unless you can submit verified expense claim up to that amount, every month.

    For this to be accepted by Revenue, you will have to get a statement from your employer stating you are entitled to mileage expenses up to a ceiling (the amount of the allowance) each month. However, when you are on holidays you will not be entitled to claim any expenses.


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