Company Car/ BIK personal use.

meditraitor

I looked at the revenue site
http://www.revenue.ie/revsearch/search.jsp

and cant make head nor tail of it (maybe Im an idiot) but what I am trying to find out is, what the tax implications of having a company car are?

Details....

The company fleet is being changed every 3 years but the company would like to give one of these cars (2007)
say a Mondeo (original value 30K)
to an employee who doesnt use a company car at the moment and will only use it sporadically for work.. He will get personal use out of it ( maybe 5k KM per year)
He will be taxed and insured by the company.

What are the tax implications on this employee for this BIK ( im presuming it is treated as a BIK)

nompere

Try this bit of the site:

http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/index.html

Having a company car will certainly be taxed as a benefit in kind. Your employer is responsible for all the deductions of PAYE and PRSI. Your payroll department should be able to discuss your personal position without having to resort to generalities.

meditraitor

nompere wrote: »

Try this bit of the site:

http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/index.html

Having a company car will certainly be taxed as a benefit in kind. Your employer is responsible for all the deductions of PAYE and PRSI. Your payroll department should be able to discuss your personal position without having to resort to generalities.

Thanks, I will give the payroll guy a call.