BIK on Company car /Van

kcummins

Hi,

at present i am paying bik on a company car (INSIGNIA) , would i save much if i switch to a company van (looking Mokka x van ) instead as i am not doing as much mileage and would like to get want i pay in bik down.

Thanks
ken

relax carry on

kcummins wrote: »

Hi,

at present i am paying bik on a company car (INSIGNIA) , would i save much if i switch to a company van (looking Mokka x van ) instead as i am not doing as much mileage and would like to get want i pay in bik down.

Thanks
ken

The bik on a company van is 5% of the OMV and the bik on a company car can range from 30% OMV to 6% OMV depending on millage.

kcummins

so that 5 % would still apply for a car van
Thanks

relax carry on

kcummins wrote: »

so that 5 % would still apply for a car van
Thanks

So long as it meets Revenues definition of a van. Lots of companies have gotten caught out thinking a particular vehicle was a van rather than a car.

Meaning of “van”

A van is a mechanically propelled vehicle which –
 is designed or constructed solely or mainly for the carriage of goods or other burden, and
 has a roofed area or areas to the rear of the driver’s seat, and
 has no side windows or seating fitted in that roofed area or areas.

Where a crew cab or other similar type of vehicle meets all of these criteria it is regarded as a van rather than a car.\0

Note all of the criteria have to be met.

capefear

Have a look at electric cars no BIK on them

kcummins

I would but distance not great on them and i have to travel from one end of the country to the other...

Conba

@kcummins did you determine whether the Mokka X Van meets the definition of a van for revenue? I.E. do the blacked out back windows qualify as 'no side windows' ?

Calahonda52

relax carry on wrote: »

The bik on a company van is 5% of the OMV and the bik on a company car can range from 30% OMV to 6% OMV depending on millage.

There are other restrictions also that don't apply bro the car
https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/private-use-of-company-vans/exemptions-from-bik.aspx

hochnie

Can anyone clear up a disagreement I am having with the finance director of the company I work for regarding BIK on a company car.
The crux of it is as follows.

Change of vehicle after 8 months of the current year.
First 8 months of the year approx 24000 business kms(18% rate)
Second 4 months in new vehicle approx 17000 business kms(6% rate)

There is a small difference in the OMV of the 2 vehicles(not an issue in the disagreement) but the FD is suggesting that the BIK is not based on the cumulative total for the year( ie 41000 kms bik corrected to 12% at the end of year) but that it needs to be treated at 18% for the first 8 months and 6% for the last 4 months.

I was always under the impression that apart from using the OMV of the vehicles driven during the year for the calculation that the BIK needs to be corrected for total kms driven in a year?

Will Yam

hochnie wrote: »

Can anyone clear up a disagreement I am having with the finance director of the company I work for regarding BIK on a company car.
The crux of it is as follows.

Change of vehicle after 8 months of the current year.
First 8 months of the year approx 24000 business kms(18% rate)
Second 4 months in new vehicle approx 17000 business kms(6% rate)

There is a small difference in the OMV of the 2 vehicles(not an issue in the disagreement) but the FD is suggesting that the BIK is not based on the cumulative total for the year( ie 41000 kms bik corrected to 12% at the end of year) but that it needs to be treated at 18% for the first 8 months and 6% for the last 4 months.

I was always under the impression that apart from using the OMV of the vehicles driven during the year for the calculation that the BIK needs to be corrected for total kms driven in a year?

I'm reading this without reference to any tax manuals, so caveat emptor!!

I would agree with the analysis that says the 41,000 Kms in total is the driver (lol) of this. The principle is that the more you drive on business the less bik you pay.

So taking the 41k level, and assuming that's the 12% band, I would calculate your bik on 8/12 of omv on first car plus 4/12 of omv on second car.

But I do stand to be corrected..........