How much is a company car/van worth to me?

connundrum

I understand that circumstances can vary from case to case, but is there a generally accepted valuation put on a company car/van being given to an employee?

I'd love to put a value on it i.e. salary 30k, bonus 5k, car 3k - or something similar.

DanGerMus

Well it depends on the car/van and your age really. A van tax is 282 plus your insurance plus servicing you're talking 1k plus at least. Then ad mileage if you get a fuel card which you probably will you could be talking roughly 1500/10,000km. But remember this can be a massive advantage in terms of your weekend freedom to travel long distances for free. Plus no car loans that could be a 100 a week.
3k could be conservative IMO it really depends on your mileage.

At a minimum i'd say 1500 plus 1500 per 10k km traveled. Don't forget you'd have to buy a car aswell.

Blazer

I do about 15k a year.
Costs me about €40 a week on petrol (less on diesel).
so that's 2k on petrol.
€360 to tax it and €450 to insure it.
So say 3K.
Then you've the cost of the car itself and the repayments so I'd say 5K would be a realistic sum.

doolox

Would you have to pay BIK on a van?
I wouldn't put it past our government to tax vans.

Mr. Incognito

There is an accepted valuation but since 2004 all BIK's are operated through payroll so it is already included in your gross salary figure.

Why do you want to know?

doolox

Just wondering how it would affect me wages if I took a job with a van.

Mr. Incognito

Lol, Your employer will get a capital allowance for the provision of a company car for the portion that relates to business use and you will be taxed on it as a benefit through payroll. The starting point for cars is 30% of Open market value and for vans is 5%. However:

Where an employee who has the use of a company van goes directly to work from home in the morning and brings the van home every evening, will there be a taxable benefit?
Where a van is available for private use, a taxable benefit arises. However, such private use will not be taxable where the following conditions are met:
(1) the van is supplied by the employer to the employee for the purposes of the employee's work,
(2) the employee is required by the employer to bring the van home after work,
(3) apart from travelling from work to home and back to work, other private use of the van by the employee is forbidden by the employer, and there is in fact no other private use,
(4) in the course of his or her work, the employee spends at least 80% of his or her time away from the premises of the employer to which he or she is attached.

Are all vans exempt from the benefit in kind charge following the Ministers recent announcement?
No. Where all of the conditions outlined in the Minister for Finance's statement (as set out in the answer to the previous question) are not satisfied, the taxable benefit is 5% of the original market value (VAT / VRT inclusive) of the van less any amount made good by the employee directly to the employer.

Further info here: http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/application-payeprsi.html#car1