Income tax too high in Ireland: Another story

mlb10theshow

A friend of mine, he is a very hard worker and as a benefit of his recent promotion, he now has got offered a company car worth 43k from his global company, which sounded really nice but, then he told me about the tax problem.

Because he will not gonna be doing required business mileage for tax exemption, he has to pay tax for 30% of 43k as benefit in kind (aka bik) which is ridiculously 430e a month. 430e extra tax a month! Why would you pay 430e for something that you don't own and why would you worry about to take something you got as a prize.
Imagine he loses that job in 5 years. He would have paid 25k for nothing whereas you can buy some cars for 25k and you can own it for forever.

I am thinking the taxation system here is seriously degrading the motivation to work hard.

srsly78

He could just say no to the company car.

barneystinson

Hold on.

For 430 a month he will have a 43k car - and he won't have to pay a cent in motor tax, insurance, maintenance or fuel. Sounds like a pretty good deal to me?!

I pay at least that much monthly, just to run my car.

Do the sums properly OP

mlb10theshow

Ta