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Company Car Tax Rates

  • 10-10-2006 9:51am
    #1
    MICKEYG
    Registered Users, Registered Users 2 Posts: 827 ✭✭✭


    I have a company car and I have no business mileage. The tax rate is thus 30% of the Original Market Value (OMV). Two questions;

    1. Can the OMV be set at the cost price of the car (i.e. the list price less the normal cash discount you get from a dealer (I believe this is usually 10%)?

    2. My company does not pay the petrol charge - can I reduce the 30% rate because of this (I believe I can reduce it to 25.5% but I want to be sure)?

    Thanks.


Comments

  • #2
    R.O.R
    Registered Users, Registered Users 2 Posts: 12,712 ✭✭✭✭R.O.R


    Hi,


    1. Technically it's the OMV less a discount that anybody can avail of by walking in off the street. In reality it should be the discount the company recieves - up to a maximum of 10% discount. Most manufacturer's won't go to 10% but a few go over.
    It has been recommended to a couple of companies that they declare 10% regardless of the actual discount and as far as I know no-one has ever got pulled up on this, but it's probably safer to declare the actual discount.

    2. From what I remember the reduction for paying for your own fuel was done away with when the legislation changed. There is a loophole if you use a fuel card that the company pays for and then takes out of your wages. The total fuel cost per annum would be counted as you paying towards the running cost of the vehicle and come off your annual notional pay. Again how legal this is is questionable.


    The full BIK rules are available in PDF download from the ROS.ie website


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