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Car Repair - Can company pay for it?

  • 11-01-2013 8:40am
    #1
    CapedCrusader
    Registered Users, Registered Users 2 Posts: 215 ✭✭


    Hi,

    I'm living outside the state but am a director of my Irish based company.

    I bought a second car so that travelling to the airport for business reasons would be less onerous on the family. It's a 2 hour journey and previously my wife would have to take me there and back. The car was paid for personally and business related miles are charged to the company.

    I managed to do about €1000 worth of damage to the vehicle and I'm wondering if the company can pay for the repairs?

    Thanks in advance


Comments

  • #2
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    Sure but it counts as a benefit in kind and you pay tax on it. Talk to accountant.


  • #3
    CapedCrusader
    Registered Users, Registered Users 2 Posts: 215 ✭✭CapedCrusader


    srsly78 wrote: »
    Sure but it counts as a benefit in kind and you pay tax on it. Talk to accountant.

    Is there any tax advantage to doing it this way compared to if they money was paid as salary to me? Generally speaking, assuming salary would be taxed at higher rate.

    Cheers


  • #4
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    All info you need is here -> http://www.revenue.ie/en/tax/it/employee-expenses.html

    If it was a company car things would be simpler, since it's a private car I think you have to submit a special claim to revenue - they might allow some of the repair to be expensed. It depends how much the car is used for private vs business. Since you say it's 100% used for business they might allow it all - but it still needs you to fill out a special form etc (detailed in link above).


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