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Electric company car for private use only?

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  • 23-03-2020 8:42pm
    #1
    xboxdad
    Registered Users Posts: 901 ✭✭✭


    Hi there,

    Can a personal LTD director buy an electric passenger car for themselves for private use only?

    AFAIK a company can buy such car (cheaper than 50k) and give it to an employee for 100% private use at 0% BIK rate.

    Does a director of the personal LTD qualify as such employee?

    Thank you.
    Tagged:


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    #2
    user.name
    Registered Users Posts: 283 ✭✭user.name


    There isn't any restrictions in Revenue manuals or the direct tax legislation that prevents the provision of a vehicle 100% for private use. The BIK exemption would apply.

    As far as I know a company director could qualify in this instance providing their salary is assessed to income tax via the PAYE system.


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    #3
    xboxdad
    Registered Users Posts: 901 ✭✭✭xboxdad


    user.name wrote: »
    There isn't any restrictions in Revenue manuals or the direct tax legislation that prevents the provision of a vehicle 100% for private use. The BIK exemption would apply.

    As far as I know a company director could qualify in this instance providing their salary is assessed to income tax via the PAYE system.

    Thank you.
    Oh, this PAYE requirement will be the obstacle then.


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    #4
    user.name
    Registered Users Posts: 283 ✭✭user.name


    Yes if not assessed under PAYE then BIK provisions don't apply. The provision of the car will be treated as a distribution out of the company and the full amount (i.e. the value of the car) will be subject to income tax. Furthermore, the expense would not be deductible in computing the CT liability for the company.


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