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Taxation on car

  • 14-11-2006 11:10am
    #1
    petscul
    Closed Accounts Posts: 12 ✭


    Recently I've been offered a job and part of my package will include my new company taking over the repayment of my loan. I will remain the owner of the car.

    The sum of the loan will be 5000. Not sure if it will be paid in one lump sum or on monthly/weekly basis.

    My question is what type of tax will i be subjected to from receiving this payment.


Comments

  • #2
    Pablo
    Registered Users, Registered Users 2 Posts: 476 ✭✭Pablo


    As far as I know it would be classed as a bonus, as in part of your gross wages and therefore taxed like that.

    Even though the more I look at this I am thinking it would be along the Benefit In Kind.
    The rules applying to benefits-in-kind vary. Generally, the value of the benefit-in-kind is the cost to the employer of providing the benefit less any contribution by the employee. Special rules apply to the following benefits-in-kind:

    * A car
    * Other motor vehicles
    * Loans
    * Provision of living accommodation.
    It points to this leaflet : http://www.revenue.ie/leaflets/it_20.pdf for the exact rate.

    You could always give the guys at the revenue commissioners, see http://www.revenue.ie/cont_main.htm


  • #3
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    It is taxed as income, same as any other income. Are they paying the loan through your payslip or other means?


  • #4
    petscul
    Closed Accounts Posts: 12 ✭petscul


    Think it will come through my payslip. Not 100% sure as of yet

    Hoping to get it paid as a mileage expense for the value of the car. Tha way I think I should be ok on having to pay tax.


  • #5
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    petscul wrote:
    Hoping to get it paid as a mileage expense for the value of the car. Tha way I think I should be ok on having to pay tax.
    Is there any good reason why you shouldn't pay your fair share of tax, like the rest of us. Both they and you are crazy if they go down the road of paying fake milage claims. All it takes is one disgruntled employee to rat them out to Revenue and both you and them will be facing (at best) heavy Revenue bills including interest & penalties, and at worst prosecution.


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