Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Electric car, BIK, salary sacrifice

  • 25-01-2020 10:57pm
    #1
    colm_c
    Registered Users, Registered Users 2 Posts: 2,032 ✭✭✭


    I have the option to get an electric car through work, and my salary reduced based on that amount.

    Only caveat is I need to do all the legwork myself.

    - does the company have to fund the whole amount? Or can they use hire purchase?
    - is leasing an option to have zero BIK?
    - the company would 'own' the car, would it be possible to buy it from them for a nominal amount after 3/5 years?

    Effectively, what is the optimal way to do this to minimise tax and maximise benefit?


Comments

  • #2
    silver2020
    Registered Users, Registered Users 2 Posts: 2,045 ✭✭✭silver2020


    The BIK is nothing to do with how its funded - it the benefit value you get that is taxable. (0% for electric car that has a retail price of under 50k)

    So they can lease, hire purchase or pcp - makes no difference. BIK will still be zero

    The company would have to sell it at market value. If its your company, get it valued by an auction place, deduct the fees and you have a value


  • #3
    colm_c
    Registered Users, Registered Users 2 Posts: 2,032 ✭✭✭colm_c


    silver2020 wrote: »
    The BIK is nothing to do with how its funded - it the benefit value you get that is taxable. (0% for electric car that has a retail price of under 50k)

    So they can lease, hire purchase or pcp - makes no difference. BIK will still be zero

    The company would have to sell it at market value. If its your company, get it valued by an auction place, deduct the fees and you have a value

    Ok thanks.

    The funded part is what will come out of my salary, hence the funding question.


Advertisement