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BIK on company car when abroad?

  • 13-01-2017 3:41pm
    #1
    Deagol
    Registered Users, Registered Users 2 Posts: 1,749 ✭✭✭


    Hi all, hope someone can help me with this. I've read up on it on the Revenue site but it's not very clear to me. Perhaps intentionally!

    I have a company car as I work as a service engineer. However, I spend a considerable amount of each year either abroad working or offshore working (oil platform in UK etc).

    Am I liable for BIK on the full 30% OMV irrespective of the above? Or is there any notion that since I'm clearly not in the country and in a position to use the company car that I get pro-rate exemption or similar?

    Any opinions etc would be gratefully received, any way to cut my very hefty tax bill :):cool:


Comments

  • #2
    tax_tutor1
    Registered Users, Registered Users 2 Posts: 110 ✭✭tax_tutor1


    Yes you can qualify for a reduction in your BIk if you are working outside of the State and the vehicle is not available for use during that period by you or your family. Ideally park it up at employers premises during period abroad and they can provide confirmation of same for Revenue.


  • #3
    Deagol
    Registered Users, Registered Users 2 Posts: 1,749 ✭✭✭Deagol


    tax_tutor1 wrote: »
    Yes you can qualify for a reduction in your BIk if you are working outside of the State and the vehicle is not available for use during that period by you or your family. Ideally park it up at employers premises during period abroad and they can provide confirmation of same for Revenue.

    It would normally be parked in the airport carpark, would that suffice as evidence that it wasn't available for use? Say, if I kept a copy of the ticket receipts showing entry and exit times from the airport carpark?

    And is there a minimum time per year or whatever that you have to cross before it's considered?

    Thanks for help!


  • #4
    tax_tutor1
    Registered Users, Registered Users 2 Posts: 110 ✭✭tax_tutor1


    Airport car park is perfect but obviously more expensive for your company. Receipts from car park should suffice.
    Technically no minimum period in that one day away could qualify you for a reduction:mv of car by 30% by n/365 where = n is no of days out of State.
    Best of luck with claim, may be after end of relevant tax year.


  • #5
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,632 ✭✭✭✭Marcusm


    tax_tutor1 wrote: »
    Airport car park is perfect but obviously more expensive for your company. Receipts from car park should suffice.
    Technically no minimum period in that one day away could qualify you for a reduction:mv of car by 30% by n/365 where = n is no of days out of State.
    Best of luck with claim, may be after end of relevant tax year.

    Given that the car is available for his use, would there not be an issue?


  • #6
    tax_tutor1
    Registered Users, Registered Users 2 Posts: 110 ✭✭tax_tutor1


    Marcusm wrote: »
    Given that the car is available for his use, would there not be an issue?

    No issue as working abroad and car not available for either his use (as he is abroad) and parked up so not used by family or household. This is in the Revenue guide for employers and calculation of employees bik.


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  • #7
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    tax_tutor1 wrote: »
    No issue as working abroad and car not available for either his use (as he is abroad) and parked up so not used by family or household. This is in the Revenue guide for employers and calculation of employees bik.

    I've seen a revenue auditor argue that by being parked in the airport it was parked for the employees convenience and benefit.

    Unfortunately I left that job prior to the audit being settled so I am unsure what the resolution was.


  • #8
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    tax_tutor1 wrote: »
    No issue as working abroad and car not available for either his use (as he is abroad) and parked up so not used by family or household. This is in the Revenue guide for employers and calculation of employees bik.

    From the Revenue guide:
    Company Car not available for full year
    Adjustments will be necessary where a car is not available for the full year, e.g. where -
    an employee receives a car after the start of the tax year, or
    an employee gives up a car before the end of the tax year.
    Equally an adjustment will be required where a car is for some other reason not available for private use for part of the tax year, for example, where an employee is working abroad for an extended period. In this case, a car provided to an employee will not be regarded as available for private use for that part of the year in which the employee is outside the State for the purpose of performing the duties of the office or employment, provided the following conditions are met:
    The employee travels abroad without the car
    The car is not available for use by the employee's family or household during the employee's period of absence outside the State

    So the question is how is extended interpreted: perhaps a period in excess of 5 working days


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