BIK changing to CO2 based System

corkandproud

Just heard that BIK will be changed to CO2 emissions.

I have an "F" rated 2.0 Petrol engine. However I have always filled it with E85 which reduces emissions by 85%.

I bought the car based on doing the right thing at the time. I wonder will the changes apply to cars on the or new purchases.

I could be screwed!!!

Hellrazer

I wonder if anyone is going to actually pay less BIK with this change??

Gary ITR

Well it was the case of the more miles I did the less I paid. So how will the co2 work.

So will it be a case of somebody driving a 1.4 focus doinig 100,000miles will be paying the same as somebody driving a 1.4 focus doing 5,000 miles

kevpants

I always thought it so stupid that you paid more tax if you didn't drive enough. People in my company actually do laps of the M1 to get their miles up. Not exactly set up with the environment in mind.

How could you rework BIK for co2 emisions though?

It's not really BIK then surely?

BIK is meant to be a tax on anyone receivng a company car so that it's not a "free car" which would be like saying we'll pay you €20k more to buy a new motor. If you do loads of miles the governmnt decides it really is a tool of your job rather than a perk and you pay less tax, if you don't do the miles they ride you.

How can you change that to be based on co2? Is it just going to be the same setup but you get a discounted rate if the company car has low emissions?

Damien360

Hellrazer wrote: »

I wonder if anyone is going to actually pay less BIK with this change??

In the current climate, I would doubt that very much. UK has the CO2 system and is linked to car value. Not linked to mileage. Seems a stange system as everyone pays for the same car regardless of miles. benefits low mileage drivers only when compared to ourselves.

I dare anyone to tell me that doing 30,000 miles a year in a mondeo is a benefit to me.

I can see the current sytem change for us by adding a levy (the new taxation word for the day) for cars based on their tax band. To explain, whatever you pay now, plus a percentage of that figure to account for the CO2 output. Guessing but there is no way they will reduce the tax on BIK. Only way is up.

Anan1

corkandproud wrote: »

I have an "F" rated 2.0 Petrol engine. However I have always filled it with E85 which reduces emissions by 85%.

No it doesn't.;)

Tipsy Mac

As far as I know the CO2 based BIK will only be on vehicles of January 2008 registration or newer.

corkandproud

Tipsy Mac wrote: »

As far as I know the CO2 based BIK will only be on vehicles of January 2008 registration or newer.

Jan seems strange as the new VRT changes came on stream in July.

My car is a March registration.

Gary ITR

Horsesh1te anyway. I have a December 07 car

Hellrazer

Can anyone clarify the 200 euro parking levy.
Is it only for employees whos employer pays for their car parking or is it for every person who parks in the major urban areas even though they`re parked on their employers premises??

Seems like its going to be a strange one to enforce.

josh59

Tipsy Mac wrote: »

As far as I know the CO2 based BIK will only be on vehicles of January 2008 registration or newer.

Does anyone have anything further on this ? In the process of having to change my co car (the lease is up) but the leasing company have told me to stall as the details of the new BIK system they say will be announced at the end of the month.

R.O.R

josh59 wrote: »

Does anyone have anything further on this ? In the process of having to change my co car (the lease is up) but the leasing company have told me to stall as the details of the new BIK system they say will be announced at the end of the month.

As far as I'm aware, it's all part of the Finance Act which is discussed later this month.

I'd say it will benefit drivers in the current 30% bracket who go for VRT Band A or B vehicles, but reps doing large mileage might end up paying more.

All just my opinion though. Definately look only at low CO2 cars though.

Berty

I hope this helps you a bit.

The new system is based on your retail price of the car and your mileage.


The System is as follows:

1. The first figure that you get is the BIK liability which is 30% of the retail price of the car:

EG. Car is valued: €25000 euros
Liability 30% €7500 euros.


2. Next you discount that liability of 7500 euros figure by various percentages depending on Kilometres travelled. to get what is now called your Notional Earnings. The yearly Kilometres are calculated by deducting 8047 Kilometres from your total Kilometres (Private and Business) as this 8047 Kilometres is what the revenue commissioners will assume is your private usage. So if you travelled 800 Kilometres in the week the assumption is that your yearly usage is 800 multiplied by 52 working weeks less 8047 personal Kilometres. Because most people do not use the car during holidays it is now to your advantage to allow the company use your car while on holidays so as to keep the usage up to the max discount levels.




3. There is one exception to the rule of the kilometres usage discounts which will effect ALL OF YOU travelling below 21140 Kilometres and that is if you have a company car and you spend 70% or more away from your work place office then the revenue commissioners will allow you in to the first discount bracket i.e. 20% discount (marked with the asterisk.)



4. The annual liability or notional earnings as calculated above is then divided by 52 and then fed in to your pay roll on a weekly basis (as if you had actually earned it) where you pay tax on it at your current level and PRSI. This additional notional earnings is then deducted so that you do not get the earnings but you do pay tax and PRSI.





The notional earnings amount (BIK) will appear on your payslip as if you had earned this amount for tax and PRSI calculations and it is deducted again to remove it from earnings.

-Chris-

Where does CO2 come into that?

Berty

AudiChris wrote: »

Where does CO2 come into that?

None that I can see. I took this from the Contract People website.

http://www.contractpeople.com/bik.htm

They have a hell of a lot of drivers on their books so they must be on top of it with up to date info. They have a current BIK calculator. I never check because my employer subsidises my BIK. Whatever I should pay my employer gives me a "bonus".

-Chris-

Keep your eyes on the skies then, they're about to change from a mileage/OMSP based system to a CO2 based one - you may have to renegotiate your position fairly soon...

Berty

That should only really hurt the boys with the 4x4's and big luxury end cars with big engines.

Considering the new A4 is only 134 for Co2 and its category B that should be better..................................hopefully

Even the 170BHP is still Category B because its only 140 for Co2

-Chris-

Yeah, if you're category A or B you should be safe no matter what mileage you do - it'd be pretty snide to go after those guys for more BIK.

Berty

Somebody is going to have to pay for the fact all these 12 year old girls are going to get cancer. The guys working on the new roads we desperately need will have to pay for the injections because they need landcruisers and the like.

If you are like Todayfm and Limerick95fm (and others ) with fleets of Isuzu Troopers then you may as well follow spin fm's lead and buy some Mini's

R.O.R

quirke_folder wrote: »

Somebody is going to have to pay for the fact all these 12 year old girls are going to get cancer. The guys working on the new roads we desperately need will have to pay for the injections because they need landcruisers and the like.

If you are like Todayfm and Limerick95fm (and others ) with fleets of Isuzu Troopers then you may as well follow spin fm's lead and buy some Mini's

I'd guess the Trooper's are Commercial and therefore only liable to 5% BIK. If they go after van drivers then there will be murder so I can't imagine they will be touched.

Berty

R.O.R wrote: »

I'd guess the Trooper's are Commercial and therefore only liable to 5% BIK. If they go after van drivers then there will be murder so I can't imagine they will be touched.

Well currently but if they go to Co2 then they have big engines and will be subject to higher BIK.

The 3.0 Ltr is 242/244 so we will find out soon enough what will happen to them.

R.O.R

quirke_folder wrote: »

Well currently but if they go to Co2 then they have big engines and will be subject to higher BIK.

The 3.0 Ltr is 242/244 so we will find out soon enough what will happen to them.

Maybe for the passenger, but can you link to any Manufacturer figures for CO2 on commercials?

All the commercials we register have 999g/KM on the RF100's and I'm yet to find figures from Manufacturers for CO2 or Fuel Consumption.

Berty

R.O.R wrote: »

Maybe for the passenger, but can you link to any Manufacturer figures for CO2 on commercials?

All the commercials we register have 999g/KM on the RF100's and I'm yet to find figures from Manufacturers for CO2 or Fuel Consumption.

Link to the Landcruiser section. I quoted the LWB 3.0

It does not break down the difference between a passenger and a commercial. They would not be different anyway because the Co2 emmitted would be the same from the same engine.

R.O.R

quirke_folder wrote: »

Link to the Landcruiser section. I quoted the LWB 3.0

It does not break down the difference between a passenger and a commercial. They would not be different anyway because the Co2 emmitted would be the same from the same engine.

Nope. Mercedes have different CO2 emissions for the E200 Classic, Elegance and Sport/Avantgarde. Lexus have different CO2 emissions for the Is220d Executive and Sport models.

You can't guage the fuel consumption, or CO2 emissions due to the different weights that commercial vehicles always carry. Car figures are all done with a standard driver weight and fuel load - this doesn't apply to commercials.

Redsoxfan

quirke_folder wrote: »

I hope this helps you a bit.

The new system is based on your retail price of the car and your mileage.

This is the current system-nothing new there.

commited

Arse. I have a 08 Nissan Navara - registered in February.

I had to get a Jeep as part of my job, and I had to have 5 seats. I do high mileage (already on 45k), so I'm screwed if this comes into effect. I'll have to leave the job.

R.O.R

commited wrote: »

Arse. I have a 08 Nissan Navara - registered in February.

I had to get a Jeep as part of my job, and I had to have 5 seats. I do high mileage (already on 45k), so I'm screwed if this comes into effect. I'll have to leave the job.

I'd be very surprised if commercials are badly affected so you should be OK.

commited

Doesn't come under normal commercial rules - treated as a car as it has 5 seats.

-Chris-

But if you're doing high miles, then you're hardly a "perk" user - the real purpose of BIK (other than revenue collection) is to penalise the "perk" user while minimising the impact on the "necessity" user. That's why genuine commercials or really high mileage users get such a break.

commited

AudiChris wrote: »

But if you're doing high miles, then you're hardly a "perk" user - the real purpose of BIK (other than revenue collection) is to penalise the "perk" user while minimising the impact on the "necessity" user. That's why genuine commercials or really high mileage users get such a break.

Which is exactly what I'm saying. If they take away the mileage system and replace it with a CO2 system then I'm screwed.

-Chris-

What I mean to say is that the Gov't is pro-business and therefore, in formulating a new BIK system, will (hopefully) seek to continue reduce the tax liability for people who need a vehicle to do their job - it's the way the current system is built, and I don't see why it would change.

That's my hope, anyway...

Plus 10

Berty wrote: »

3. There is one exception to the rule of the kilometres usage discounts which will effect ALL OF YOU travelling below 21140 Kilometres and that is if you have a company car and you spend 70% or more away from your work place office then the revenue commissioners will allow you in to the first discount bracket i.e. 20% discount (marked with the asterisk.

Tried googling this everywhere!! It may seem self explanatory but anyone know what constitutes "away from your work place" if for example a company operates in say 10 locations and an employee is based in location A spends 10% of their time at each of the other 9 locations. Do you think this woudl qualify?

galwaytt

commited wrote: »

Which is exactly what I'm saying. If they take away the mileage system and replace it with a CO2 system then I'm screwed.

....if that happens, why not move to a mileage allowance, and buy your own vehicle ?

mickdw

What is the approx cost/month in bik of a €45,000 bmw 520d to someone doing very small business mileage?

Gary ITR

Old thread is old.... Start a new one if you must Plus 10