Benefit in Kind - BIK

quilmes08

Hi there,

My wife and I both work for the same employer. We have a mortgage at 2.98% fixed for another 12 months.

The overall loan is 280k. We can put 190k on a staff preferential rate of 3% subject to BIK.

We are looking at the possibility of fixing the overall mortgage of 280k at 3.8% or putting 190k on the staff rate of 3% and putting the remaining balance of 90k on a commercial fixed rate.

Can anyone tell me how to work out the BIK allowing for changes in paye / tax changes?

I've checked the Revenue sites, Irish Taxation Institute sites and there is insufficient information to help me.

Any advice / recommendations would be most welcome.

shuyin1

Pref loan: 5% for principle private residence, 12.5% for everything else. Assuming its your ppr,BIK is the difference between 5% less [interest rate from employer]*loan. EG [5-3=2%]*190,000=3800 BIK. Goes into schedule E and increases your income tax. Not sure if that helps or not.

Mr. Incognito

Read the charter- contact MABS or the like

Thread closed.