Benefit in Kind

ugens

Hi,

I'm due to change my company car this summer and was a little confused about the benefit in kind (BIK) implications. The revenue website is pretty useless!

I am working in an export company that thankfully is doing well the last few years, although they've used the recession to implement a pay freeze for two years now. The pay freeze is OK if your high up the ladder in the company, but I'm stuck on a trainee pay level, with the work load of colleagues higher up the ladder....happy I have a job ...but pissed off they're taking advantage of the situation!!!

I am due to get a slight upgrade in my car this year but was worried about the amount extra in BIK I would have to pay.

Is the BIK calculated on the value of the car or does the cars emissions have any influence?

my previous car was originally valued at 20,000, my new car will be in the region of 27,000 - 30,000... How much extra will I have to pay?

The car is a perk and i don't do much in the way of business miles these days.

namenotavailablE

Assuming it's a new car, your BIK will be calculated based on the carbon emissions category with a reduction for high business mileage (they actually measure it in kilometres these days).

For category A/B/C cars, the charge is 30% of the cost of the car for annual kilometres up to 24000. This % decreases by 6 points for each 8000 km over 24000 (so it's 24% between 24001 and 32000, 18% between 32001 and 40000 etc)

For category D/E cars, it starts at 35% of the cost of the car and decreases by 7 points for each additional 8000 km and for category F/G it starts at 40% with an 8 point reduction.

If the car is a second-hand one, you use the old rules (which are basically the same as the current A/B/C rules).

If you get the replacement vehicle in the middle of the year, you'll need to take an appropriate proportion of both the thresholds and % to calculate your BIK. Also, if you pay anything directly to your employer such payments can be deducted form your calculated BIK.

EDIT: Just noticed you don't do much by way of business mileage- you might be charged using the alternative scheme which can apply if you do at least 8000 km pa business mileage. This reduces the initial % by 20% (so, for example, 35% is reduced to 28% etc)

TontoMurphy

Hi namenotavailabl,
Great post, are those figures still the same?? In process of the same and am looking at a 25,000 Toyota and expect to be seeing around 35-40k travel a year

leinsterdude

Hi, I have an insignia, and I cover 65000km on business, any idea what taxable amount per month seems right, currently its at €450 per month.

barneystinson

leinsterdude wrote: »

Hi, I have an insignia, and I cover 65000km on business, any idea what taxable amount per month seems right, currently its at €450 per month.

Could you not have found an older thread to resurrect...?

leinsterdude

What do you care ?

barneystinson

leinsterdude wrote: »

What do you care ?

Because it's bad etiquette for starters, as other people often come on and start replying to earlier posts that are 5 and 6 years old and things can get very confused and frustrating, particularly in a tax thread, because the system can change a lot in 5 years.

It's no harder to open a new thread than to root out an irrelevant old one.

leinsterdude

argo.....