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  • 29-11-2019 2:03pm
    #1
    Eircom_Sucks
    Registered Users, Registered Users 2 Posts: 3,193 ✭✭✭


    sorry if this is not in the right section

    long stort short

    a friend of mine works in Virgin Media for past 12 years and is being made redundant

    2 issues

    they are paying him 3 months salary in Dec ( contract states if employed over 10 years you get 8 weeks pay at end of the contract ) so he gets his months xmas pay and 2 extra months , so will he be taxed more because of it being the last month of the calendar year ?

    also on his payslip it shows ( BIK ) but actually doesnt pay anything , he's a broadband installer and does cancellations and has a company van

    should he own that van now ?


Comments

  • #2
    You Me We
    Registered Users, Registered Users 2 Posts: 6 ✭You Me We


    I assume the 8 weeks pay is a discretionary payment on top of the tax-free statutory redundancy (2 weeks per year of service, plus 1 week, capped at €600 per week)?

    He *may* get the discretionary payment fully or partly tax-free. More here: https://www.citizensinformation.ie/en/employment/retirement/income_tax_in_retirement/retirement_lump_sum_taxation.html

    Regarding the van, his usage of it, BIK treatment (if any) etc, your friend should refer to his contract of employment. If the company paid for it in the first place and there's nothing specific in the contract about him taking over ownership of it, then I'd assume the company still owns it and he'll have to give it back.

    Hope this is of some help.

    PS I'm assuming he's actually an employee based on your post. I thought a lot of those type of guys were self-employed contractors though.


  • #3
    tastyt
    Registered Users, Registered Users 2 Posts: 2,039 ✭✭✭tastyt


    Just another BIK question.

    I recently added partner to health insurance in work , will i see a small reduction in my monthly pay cheque as its fully covered by my employer but now costs more.

    Is that how it works?


  • #4
    mazza
    Registered Users, Registered Users 2 Posts: 224 ✭✭mazza


    Yes, I believe it will be as you outline.

    If employer is covering your partner's health insurance from this month say, you will be liable for the BIK on that which you weren't last month. So, your net pay will be slightly lower than it was last month.

    You're still ahead overall of course, given you are getting your partner's cover for just the cost of the BIK.


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