BIK

pm.

hi all sorry if this is in the wrong location but i have a long term lease mitsubishi L200 crewcab as my company vehicle and i pay €220 per month bik. i do over 50,000kms a year and its taxed as commercial.

rebel.ranter

What is your query OP?

Dartz

He might be wondering if he's getting a good deal.

Seillejet

If OP is wondering whether he i paying right amount it sounds like it to me. I have been on BIK for 4 1/2 years and I am paying similar for almost like for like.

-Chris-

Sounds like you're paying the BIK for a passenger car at <15,000 miles p.a.

I think you should be paying far less than this.

pm.

its just someone told me that its commercial and i shouldnt have to pay vrt ? as i said its taxed commercial

L1011

BIK on commercial van-alikes is 5% of OMSP at new per annum is it not? 220 a month would be valuing the vehicle at 53k. Sound right? I've no idea...

-Chris-

Exactly, the L200 is €25k. You'd pay €220ish a month if it was considered passenger, but only €40ish if it's commercial.
It's a query worth pursuing....

pm.

MYOB wrote: »

BIK on commercial van-alikes is 5% of OMSP at new per annum is it not? 220 a month would be valuing the vehicle at 53k. Sound right? I've no idea...

no i think the value on a new one is 35k but the one i have is a 07

-Chris-

http://www.mitsubishi-motors.ie/configurator/index.cfm?fuseaction=mit.Overview&modelID=1460&bodyID=4299

This says €25k, although the info seems a litle old and you may have a higher spec.

L1011

pm. wrote: »

no i think the value on a new one is 35k but the one i have is a 07

Its valued as if its brand new no matter how old it is. Assume its about 33,000 for one bought two years ago, (33000 / 20) / 12 is about 140 euros. Chris's valuation puts the bill down to about 100 a month.

Volvoboy

Excuse the innocence, but what does BIK mean?:o

Fishtits

New one to me, I didn't think BIK was an issue with commercial vehicles?

Maybe this would get a better response in the accountancy forum?

L-M

Volvoboy wrote: »

Excuse the innocence, but what does BIK mean?:o

Benifit in Kind

L1011

Fishtits wrote: »

New one to me, I didn't think BIK was an issue with commercial vehicles?

Maybe this would get a better response in the accountancy forum?

I've to pay BIK on a car-adapted van if I want to use it outside work hours; so it definately applies to that class of commercials - maybe not all.

Fishtits

Definitely one for the accountants...

What if the vehicle was driven by someone who is self employed?

R.O.R

OP - is €220 the amount on your payslip? When the new BIK legislation came in in 2003 there were people crapping themselves as they thought the amount on their payslip was what they were being BIK'd, rather than the amount they are being taxed on.

€220 still doesn't seem right though as even in the above situation it values a commercial vehicle at €52,800!

Crew Cab commercials has always been a bit of a grey area. Technically it is a passenger vehicle and therefore liable for full BIK. The L200 is a category B vehicle and doesn't qualify for the €50 VRT for full commercials.

I'd have a word with your HR / Payroll department to see what figure they are declaring and ask if its being declared as a passenger vehicle or a commercial.

Henry Ford III

Fishtits wrote: »

Definitely one for the accountants...

What if the vehicle was driven by someone who is self employed?

BIK doesn't apply to the classically self employed. An amount of running expenses is added back to profit for income tax purposes to cover private use. It does apply to co. Directors however.

biko

http://www.fixmytax.com/benefits-in-kind.html

leon8v

The 5% of OMSP rule applies to Vans. According to revenue, "cars" includes crewcabs and Jeeps, so the BIK calculation for cars would apply for jeeps, but should be only passenger ones, however this is something that you would want to clarify with revenue.
A van is defined as among other things having a roofed area to the rear of the drivers seat, which the double cab commercial has. A quick call to revenue would calrify this. I am almost certain I called them about a commercial X5 before and was told it can be BIK'd as a van no problem.