Car Benefit-in-Kind and CO2 Emissions

Antrim_Man

Car Benefit-in-Kind and CO2 Emissions

Monday, June 28, 2010
Readers will be aware that F(No.2)A 2008 introduced revised rules for the calculation of the benefit-in-kind (BIK) arising on the provision of a company car. From 1 January 2009 the BIK is to be determined by applying a percentage based on the level of car CO2 emissions to the Original Market Value (OMV). The effective date for the implementation of these revised rules was subject to Ministerial Order. In response to recent queries raised by members on the implementation of the CO2 emission basis for determining the car BIK, we have confirmed with the Department of Finance that the Minister has not yet signed the Order effecting the implementation of these revised rules. Readers will be notified through eNews of developments on this matter.
Readers will also be aware that Finance Act 2008 introduced a similar scheme for capital allowances in respect of company cars whereby the availability of allowances is by reference to CO2 emissions. It should be noted that these new rules apply to all cars purchased on or after 1 July 2008. Similarly, since 1 July 2008 the availability of expenses for business cars is determined by CO2 emissions.
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Do you think it would be wise to take a car with lower emissions now as this is likely to be implemented soon, or will it only affect people taking cars after this ruling becomes law

R.O.R

Thought it was already implemented

No real biggy, as you'd be mad to take anything with emissions over 156g anyway.

No real need anymore as there is plenty of decent stuff coming in VRT category C or below.

Antrim_Man

Just found this

http://www.independent.ie/business/irish/benefitinkind-linked-to-emissions-1548212.html

Benefit-in-kind linked to emissions



Friday November 21 2008

Fionnan Sheahan and Eddie Cunningham
The Finance Bill has introduced a CO2-based system of taxation on how the benefit-in-kind (BIK) for company cars will be calculated.
Finance Minister Brian Lenihan is to decide when the new measures -- which apply only to new cars -- will kick in.
It is expected that linking BIK to emissions will alter the sort of car that companies ultimately buy for their employees.
The switch to an emissions-based system on July 1 last has transformed the profile of cars bought since, with diesels accounting for 90pc of BMW sales, for example.
The BIK plan is based on the same seven bands used for Vehicle Registration Tax (VRT).
Those with cars in the lowest emission bands will, in general, notice no change to their BIK charge. But those supplied with cars in the two higher bands will face an increase.
It was being calculated last night that it could come to €100 a month in some cases.
Cars in the three lowest bands of CO2 remain at the current level of BIK charge, and higher charges apply for vehicles with higher emission levels.
Also, in calculating the tax, the seven CO2 emission categories will also be grouped into three bands along the lines used for Capital Allowances purposes.
Current vehicles retain the current method of calculation of benefit-in-kind.