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BIK car taxation

  • 07-06-2016 1:45pm
    #1
    blueshark22
    Closed Accounts Posts: 205 ✭✭


    Is there any reason a company would run a group scheme rather than on an individual basis? I work as a sales rep and the scheme is a group scheme, my mileage would differ hugely from some of the people in the same scheme. i feel like i am paying more than i should be. When the company was asked about this they said that was the arrangement with revenue? Can anyone shed any light?


Comments

  • #2
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    If you are paying more than you should then someone else is paying less!

    What BIK are you paying?


  • #3
    blueshark22
    Closed Accounts Posts: 205 ✭✭blueshark22


    That's my concern! I'd have a rather large area while others would have much smaller areas in city's etc. There are also management within the company that have more expensive cars than ours. My bik is 400 euro a month - that I pay tax on .


  • #4
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,759 ✭✭✭✭Marcusm


    blueshark22 wrote: »
    That's my concern! I'd have a rather large area while others would have much smaller areas in city's etc. There are also management within the company that have more expensive cars than ours. My bik is 400 euro a month - that I pay tax on .

    A long time ago I used to advise a large manufacturer/distributor on a group BIK scheme. In that case the sales reps were in a separate group to management and head office staff but the sales director was adamant that they all the reps would be treated the same. His rationale was that business mileage was a crude measure - he saw his urban reps spending as much time behind the wheel as his provincial ones but doing fewer miles because of traffic, lower speed etc. He actually understood that the point of the BIK was to calculate the value of your personal use of the car which he saw as the same as his guys spent roughly the same amount of time on the road and thus had the same private use of the car. He didn't want people avoiding certain sales districts because of tax.

    Inclusion of finance, head office and other staff was often justified on the basis of simplicity but in reality it was to give them a free bump. It might cost £5 from each salesman but was generally worth £100s to the head office staff to be included in the average mileage calculation.

    Ultimately, I would expect that your Union is/was involved in those discussions and they would not like you to rock the boat. However, you are free to file your own tax return with the actual numbers. Neither the company nor Revenue will have the power to bind you to the group scheme, although the employer might view it as a breach of the terms of your employment.


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