Going EV but what is the BIK catch?

GT2RS

Thanks in advance for the advice.
Currently in the position to buy an EV outright using company funds but what is the feeling regards BIK from 2022? Have been searching and see threads saying it could be 22% of the purchase price?

Mc-BigE

unfortunately, (unless they do something in this years budget) the 1st of Jan 2023 the 0% for 50K company cars or less will go, and be replaced with a % based on emissions (including 0 emissions) and kms driven , the worse case for company car EVs will be 22% OMV every year.

its a crazy situation for any potential company car buyer looking to finance one over 3 or 5 years

GT2RS

Thanks for the reply Mc-BigE.

Royale with Cheese

I wouldn't bother at the moment, you'll get 18 months out of the car before potentially having to move it on, all signs point to 22% BIK for the vast majority of people using this scheme from 2023. It was a good deal if you got in at the start as 3-4 years is an acceptable enough time to be moving a car on after.

vintagecosmos

Keep in mind you cant claim mileage expenses with an EV. Depending on your business this can make a big difference....

GT2RS

Cheers guys. The only appeal really is the 0% BIK and accelerated capital allowances.

KCross

vintagecosmos wrote: »

Keep in mind you cant claim mileage expenses with an EV.

Why not?

It might have lower fuel costs but it still has tyres and mileage depreciation etc that need to be allowed for. I dont think there is anything stopping you from claiming a mileage allowance.

If a particular company has a policy to not provide it for EV's then thats their decision but it would be short sighted on their part to do that and not a general rule.

innrain

vintagecosmos wrote: »

Keep in mind you cant claim mileage expenses with an EV. Depending on your business this can make a big difference....

Straight from the horse's mouth

https://www.oireachtas.ie/en/debates/question/2019-05-21/221/

The current policy of my Department is that civil servants using all-electric vehicles may claim reimbursement at the lowest mileage rate (0 – 1200 CC) which currently stands at 37.95 cent per kilometre. This policy will be kept under review and will be adjusted as appropriate as the situation with electric vehicles becomes clearer.

vintagecosmos

If the EV is owned and maintained by the company, then you cannot claim mileage expenses on it. Its really an either or situation. You would have to work out what is more beneficial to you. if you own the company and do a lot of mileage then you might be better of buying the EV yourself and claiming mileage expenses.

That post above is in relation to if you own the EV how you go about calculating mileage since the system now is based on engine capacity etc.

innrain

vintagecosmos wrote: »

If the EV is owned and maintained by the company, then you cannot claim mileage expenses on it. Its really an either or situation.

Can you do this with an ICE?

vintagecosmos

innrain wrote: »

Can you do this with an ICE?

Basically , civil service mileage rates are there for when you use your own car. It provides for your running costs, fuel, depreciation etc.

So if a company car is provided. The company is taking that hit so you don't claim mileage. You can still get subsistence expenses though. But you also have to consider BIK as they are providing you with a car. The no BIK for EVs was an incentive for companies to buy EVs and provide them to employees with no BIK as a perk.

vintagecosmos

I just thought I would mention it as I was set to buy an EV through my company but mileage expenses is a handy way to draw money out of the company so in the end I worked out I was better off with the mileage expenses rather than the zero BIK.

GT2RS

Thanks for that. Not a lot of mileage going on these days!

vintagecosmos

GT2RS wrote: »

Thanks for that. Not a lot of mileage going on these days!

I know. I'm sure a lot of folks are gonna have plenty of 5k mileage expenses for 2020

Robotfarmer

Business mileage expenses will probably be introduced in 2023 when they reintroduce BIK.

Should the government make it mandatory that companies provide a charging station at work or is it already mandatory.