Car and Wages

pclancy

Hi,

Going for an interview tomorrow for a field service job and just wanted to ask how does a company car affect your wage offer ie if they say they're going to give me €28,000 and a car, is the car going to reduce that figure or should I expect to get more then that reduced by BIK or something? Also ive been told they'll offer me a choice of a few models, is engine size or mileage going to affect my wages as well?

Sorry if its a stupid question its my first experince of company-carmanship, last job we just got car allowances for our own vehicles.

Cheers!

whippet

a company car will set you back about €200 a month in BIK, taken from your wages after tax. This would be based on a new Passat (value about €30K) assuming fully expensed and you are doing over 30K mileage per year.

Borzoi

whippet wrote:

a company car will set you back about €200 a month in BIK, taken from your wages after tax. This would be based on a new Passat (value about €30K) assuming fully expensed and you are doing over 30K mileage per year.

Those miles must be business miles, the revenue assume that the every company car owner does 5000 personal miles every year

BIK rate on any car, doing over 35,000 miles per annum is 6%. So to take the example above of a €30K car, the revenue will treat your income as €28000 base plus €30K x .06 = €1800 or €29,800 all in.

So you'll pay extra tax and PRSI on the €1800, which will be about €860 per year or €72 a month.

Do less miles and you'll pay more tax, see page 14 of:
http://www.revenue.ie/leaflets/bikguide.pdf

pclancy

Great thats cool thanks for the info. Not half as complicated as I assumed! Doubt it will be a car that valuble but considering I'll be able to get rid of my own car I'll save money in the long run.

Tipsy Mac

Or if you want to avoid BIK altogether have them give you a carvan like a VW Golf, once the back seats are not present no BIK is paid, looks like a normal car from the outside.

Borzoi

Tipsy Mac wrote:

Or if you want to avoid BIK altogether have them give you a carvan like a VW Golf, once the back seats are not present no BIK is paid, looks like a normal car from the outside.

Wrong. Vans are BIKed at 5% of value irrespective of mileage done. See page 19 of the revwenue guide.

Paddyo

Wrong. Vans are BIKed at 5% of value irrespective of mileage done. See page 19 of the revwenue guide.

Wrong in theory - Correct in practice

Paddyo