Goods provided to an employee for personal use

Faiche Ro

Looking for some advice on providing furnishings to an employee
The revenue has detailed some guidance online

https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/valuation-of-benefits/goods-and-assets-provided-to-employees.aspx

But some accountants are having differing opinions on whether the assets will be treated as goods on hand and taxed as a dividend each year.

There’s nothing on the above link about that and even the examples given make it look like once the employee pays the BIK then there’s no further tax. So I’m a bit confused.

tanit

Faiche Ro wrote: »

Looking for some advice on providing furnishings to an employee
The revenue has detailed some guidance online

https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/valuation-of-benefits/goods-and-assets-provided-to-employees.aspx

But some accountants are having differing opinions on whether the assets will be treated as goods on hand and taxed as a dividend each year.

There’s nothing on the above link about that and even the examples given make it look like once the employee pays the BIK then there’s no further tax. So I’m a bit confused.

On both cases the employee pays BIK:

• In the case of transferring ownership (permanently transferring the asset to the employee and you are never going to get it back) is a one off BIK charge for the "value of the asset"
• In the case you are not transferring ownership (you can take the asset back from the employee at any time), every year the employee will pay 5% of market value of the asset

The BIK is only paid if there is personal use. If the computer/mobile, etc is used for work purposes there is no charge of BIK

You need to decide what kind of transfer you are doing to the employee.

Faiche Ro

tanit wrote: »

On both cases the employee pays BIK:

• In the case of transferring ownership (permanently transferring the asset to the employee and you are never going to get it back) is a one off BIK charge for the "value of the asset"
• In the case you are not transferring ownership (you can take the asset back from the employee at any time), every year the employee will pay 5% of market value of the asset

The BIK is only paid if there is personal use. If the computer/mobile, etc is used for work purposes there is no charge of BIK

You need to decide what kind of transfer you are doing to the employee.

Thanks for the response.
In the second case where the ownership remains with the company - does the company incur any yearly tax on the value of the assets? (Even though they are being used for private use by the employee)