Own Car & Company Car BIK Question

Richie_c

Hey all,

I heard once that if you have a company car and also own your own car that you do not pay and BIK, can anyone confirm if this is correct?

Basically I am wondering if I have a company car and have a separate weekend car which is obviously taxed and insured privately will I have to pay BIK as the car will not be used for SD&P uses other than to commute to work?

Any help appreciated

Cheers

Richie

nompere

Commuting to work is private use. So there is a benefit in kind - and tax.

Richie_c

Ok I accept that but if the car is provided for business use there will inevitably be an element of personal use for the commuting to and from the place of work.

Are you stating fact or your opinion?

nompere

It's fact. Here's a brief extract from Revenue notes on S.121 TCA 1997, as amended;

A car made available to an employee by reason of his/her employment is treated as available for private use unless the terms on which it is made available prohibit such use and no such use is in fact made of the car.

Here's the whole lot:

http://www.revenue.ie/en/practitioner/law/notes-for-guidance/tca/part05.pdf

whippet

If that were the case there would be a heap of people with company cars buying €150 bangers from Donedeal !!!!

dbran

BIK is based on the original market value of the car when new, with various deductions allowed for business millage, engine cc, amount personally reimbursed for tax and insurance etc