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BIK not being deducted

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  • 27-08-2012 8:47pm
    #1
    LegacyUser
    Registered Users Posts: 166,026 ✭✭✭✭


    I have been working for a company for four and half years. For the past four years they have given me use of a car with all car expenses like fuel, tax, insurance, servicing paid by them. They have given me a fuel card to pay for the petrol.

    I use the car mainly to drive to and from work and rarely use it for business purposes. I am the only person that drives the car.

    The problem is that I don't pay any benefit in kind on it. From conversations I have had with my boss I gather that they have the car down as a pool car.

    Who would be liable for the tax should their ever be an audit done on the company?
    Tagged:


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    #2
    helimachoptor
    Moderators, Science, Health & Environment Moderators Posts: 21,654 Mod ✭✭✭✭helimachoptor


    Stricly speaking as you are using the car and taking it home at night, you should be paying BIK on it.

    However if you do get audited it will really depend on your HR/accounts on whether revenue will land a judgement against you.

    One of my previous companies got audited and after that there was a massive clamp down on the use of pool cars.


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    #3
    tony81
    Closed Accounts Posts: 595 ✭✭✭tony81


    Hi Op

    Here's the info leaflet from revenue.ie:
    http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/private-use-cars.html

    Your employer is liable for correctly deducting and remitting PAYE. In the UK, if an error is made in good faith (i.e. if both you and your employer were not aware of the error) then there are circumstances that you will not have to repay it.

    Hopefully if revenue ever did make an issue of the use of the car, your employer will be able to talk his way out of it, get a slap on the wrists, and do things right in future.

    But make no mistake, your employer is liable to deduct and remit the tax from your wages, and I'm fairly sure they could instruct you to fork over the money if they thought you were in on it.


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