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BIK RATES FOR 2023!! CAREFUL!

  • 15-01-2022 5:13pm
    #1
    Registered Users Posts: 99 ✭✭ Horse1920


    Hi all,

    Don't post much- but the new bik rates for 2023 are set to be eye watering.


    Just a warning if anyone is due to order a new company car. Say normal 150bhp (under 139co2) passat or similar on the previous high milage rate of 6% is set to double for 2023.

    🙄😒



«1

Comments

  • Registered Users Posts: 1,138 ✭✭✭ kieran.


    If you have an electric car the blow is softened a little,

    Extension of BIK exemption for EVs

    • The BIK exemption for battery electric vehicles will be extended out to 2025 with a tapering effect on the vehicle value. This measure will take effect from 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023; €20,000 for 2024; and €10,000 for 2025.




  • Registered Users Posts: 2,872 ✭✭✭ Borzoi


    Do the new rates apply to existing vehicles?

    ( Because I feel an ouch coming)



  • Registered Users Posts: 99 ✭✭ Horse1920


    Hi all, Yes electric vehicle is definitely the way to limit BIK currently as well as doing your bit for sleepy Ryan and the environment but not at 60k kilometres a year.. Maybe /possibly if you've a sales position and can plan your day around some laptop work and scheduled charging but I don't know anyone with that kind of flexibility. If in a field service job - forget it and def forget it if you have to pick kids up and are covering a decent area of the country. I live in the West and work in Dublin on and off so I can't get up and home on a charge currently in any electric vehicle bar maybe a Tesla and that's not happening.

    One option is getting a hybrid which would be under 59 co2 and come in at 9% at top milage.. But would be on petrol 99% of the time and company's know this.

    5% bik for vans and 2 seater commercial jeeps but no saving on bik for crew cabs.. Just vrt and vat saving so no bueno for the employee.

    Yes Borzoi unfortunately. These are the gospel bik rates for 2023, wife has a 202 skoda kodiaq and struggled to hit the 48k on the old schedule.. Her bik will triple. So big [email protected]@kin ouch there.


    Yep Damien 360 all a bunch of disguises... What angers me is this has been out since 2019 so anyone that ordered a car that was still to be used in 2023 should have been told.

    Anyway at least hopefully some people will start asking questions now if they've to change cars.

    Please share.. Maybe will benefit some poor unfortunate that is chuffed to get a nice wagon only to find out he or she instead of 6% now is 22.5%!!!

    Thanks 👍🏻



  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators, Social & Fun Moderators Posts: 21,078 CMod ✭✭✭✭ Pawwed Rig




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  • Registered Users Posts: 2,971 ✭✭✭ User1998


    Government needs to allow VAT to be reclaimed on petrol and it would be problem solved really



  • Registered Users Posts: 27,467 ✭✭✭✭ drunkmonkey


    Are these rates set in stone or could they change again? Thinking of a plugin to get the 18%?



  • Registered Users Posts: 18,070 ✭✭✭✭ fryup


    what is it? in a nutshell...anything to do with motor tax?



  • Registered Users Posts: 8,867 ✭✭✭ markpb


    It’s a tax on people who drive a company car for personal use.



  • Registered Users Posts: 5,261 ✭✭✭ Damien360


    No. It’s a tax on individuals with company cars. Personal use has nothing to do with it. That’s the service industry (keeping lots of equipment working) and pretty much every salesperson.

    Doing 50000km per year in a Passat is considered a luxury and you get taxed for doing this. It was 6% of the brand new value of the car every year as a minimum and is now going to hit 13.5% every year. Most fleet cars are 3 to 4 year contracts.

    I’m considering getting rid of my one at the end of Leaseplan contract and going to get an old second hand one. I won’t be the only one listening to a few colleagues so I reckon the second hand market is only going to get more expensive than it currently is.



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  • Registered Users Posts: 18,070 ✭✭✭✭ fryup


    why tax people with company cars?? am i missing something here??.....btw are we the only EU country that do it?



  • Posts: 0 [Deleted User]


    Most if not all of the EU countries do it. You're not taxing the car, you're taxing the benefit of a company provided car.



  • Registered Users Posts: 18,070 ✭✭✭✭ fryup


    so who picks up the tab the company or the employee?



  • Registered Users Posts: 332 ✭✭ gary550


    The company pays for the car/diesel/insurance/tax etc and the employee is taxed for the use as this is classed as a non cash benefit

    The company pays for the car, the employee pays more tax for the benefit of using



  • Registered Users Posts: 726 ✭✭✭ athlone573


    What are the ways around this? Get a van or leave the company car at work overnight?



  • Registered Users Posts: 542 ✭✭✭ poppers


    Employee. Going to be some huge hits on existing cars. Im on 6% atm doing 48-50k per year in. but going by above table ill be taxed at 20%.



  • Registered Users Posts: 5,261 ✭✭✭ Damien360


    If you are working a small local area then leaving the car at the employers place of business does get around this. It would be odd for anything but vans to be provided in a small local area. But if you are travelling, then you work from home. Vans were fixed at 6% BIK but doing 50k per year in a van is painful.



  • Registered Users Posts: 726 ✭✭✭ athlone573


    Next question what's the definition of a van. Rip out the back seats and black out the windows?!



  • Registered Users Posts: 9,722 ✭✭✭ Marcusm


    Personal use absolutely has to do with it. If your employer prohibits personal use and ensures that the rule is followed then there is zero BIK.



  • Registered Users Posts: 27,467 ✭✭✭✭ drunkmonkey


    Getting a used isn't much of a benefit as your still paying the bik on it's new price then you've all the running costs and depreciation, new company car still probably makes sense.

    From a bik perspective something like a plug in looks very tempting, 330e etc, my bik is taking a big jump on my current car from about 410 to 760, also the company can't claim the full depreciation as it falls into band f.

    It's a hard time to buy a car was looking at one yesterday, wouldn't arrive until July and is 4k more expensive than today's price with less included options.



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  • Registered Users Posts: 1,876 ✭✭✭ Patrick2010


    Assume anyone buying a used will be claiming mileage from the company?. Back in the day I switched from a company car to providing my own and claiming mileage using civil service allowed rates and found it much more cost effective.



  • Registered Users Posts: 5,261 ✭✭✭ Damien360


    No. Getting a used car that I buy does not have any BIK so not getting a company/fleet car is the best option. That’s going to hammer main dealers for new cars if everyone does the same. Claiming for mileage at civil service rates is fine up to about 35kms and then it starts to cost, especially with new diesel pricing. The only balance for the user is buy cheap enough and keep it much longer. EV’s are useless for those doing 50-60k per year and even more so if you are not on the same site every day.



  • Registered Users Posts: 1,146 ✭✭✭ Xithus


    I'm trying to go electric myself and one of the reasons is this incoming BIK change. The problem I have is the place I work isn't very forward thinking in that regard and so far they've maintained they won't pay to charge an electric car if we get one. I asked this over in electric cars but maybe here is better. Does anyone else company pay a rate or lump sum toward the charging of an electric car, at home or otherwise?



  • Registered Users Posts: 142 ✭✭ arsebiscuits82


    Just found out about this today. Am I correct that a 2 seater commercial jeep is only going up to 8% and a crew cab will still be mileage based but with emissions added? Need to let one of the lads at work know what’s coming!

    if the 2 seater goes to mileage and emissions I’ll be paying 30%!



  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 61,711 Mod ✭✭✭✭ L1011


    I'd be astounded if there is an EU country that doesn't do it.

    Company cars that allow personal use are a benefit, and basically every benefit is taxed (even medical insurance, which you can then claim some tax relief against!).



  • Registered Users Posts: 142 ✭✭ arsebiscuits82


    if you get the right vehicle it’s great. For around €100 a month after tax I have a 221 lwb land cruiser commercial.

    No way I could afford to buy, tax, insure, fuel and service it myself. Some weeks I’d fill it twice which is around €150 a pop.

    I also have the benefit of having no restrictions on private use within reason. A few trips up the country a year does me and I’d put 50€ into it myself on those occasions just to show I don’t abuse it.



  • Registered Users Posts: 1,651 ✭✭✭ SachaJ


    For those thinking about EV's make sure and look at the battery warrenty. Saw a post on Reddit today of someone getting stung for €14k on a new battery for a Nissan Leaf. 4 year old car but they offer a 5 year or 100,000km warrenty on the battery. They'd done 165,000km



  • Registered Users Posts: 5,261 ✭✭✭ Damien360


    Think that was a taxi driver.

    I’m with Leaseplan and it’s a 4 year lease. The car has warranty typically for 3 years or 100,000km whichever comes first. The car is usually changed at 160,000km. So the battery warranty won’t bother the lease companies too much. It may actually effect residual value on resale.

    with the new BIK rates, I and some of my colleagues are seriously considering buying our own cars instead of leasing. To make it work for 50-55000km per year, even with full mileage rate applied, the max value of car has to be in the region of 25k. That means second hand market is going to get busier for everyone. It has to be diesel as no EV has the flexibility required to do that mileage per year. Also, you won’t get an efficient EV for 25k.



  • Registered Users Posts: 1 dondondow


    Hi So if someone has a company car Electric Vehicle , personal use, no business mileage.

    At the moment is paying 0 BIK at the moment, In Jan 2023 will there they be taxed BIK22.5%?

    CO2 Emissions0 g/km Citroen C4 Electric



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  • Registered Users Posts: 12,606 ✭✭✭✭ R.O.R


    In the above scenario, currently the driver is paying BIK @ 30% , but the first €50,000 of the retail price of the vehicle is being charged @ 0%. As the retail price is less than €50,000 there's no BIK due.

    Next year, the 30% BIK for those with limited business mileage, falls to 22.5%, but the 0% BIK is only on the first €35,000 of the retail price.

    In 2024, the 0% BIK is only on the first €20,000 of the retail price

    In 2025, the 0% BIK is only on the first €10,000 of the retail price

    In 2026, there is no 0% BIK rate so the full retail price of the vehicle will be charged at the rate of 22.5%, in most cases.

    Taking a C4 ë-C4 FEEL Pack 50kWh 136 as an example. Retail price is €42,020 and add €655 for metallic, giving a total of €42,675.

    In 2022 there will be a figure of €0 on your monthly payslip

    In 2023 there will be a figure of €144 on your monthly payslip

    In 2024 there will be a figure of €425 on your monthly payslip

    In 2025 there will be a figure of €613 on your monthly payslip

    In 2026 there will be a figure of €800 on your monthly payslip


    These figures are for someone doing less than 24,000km per year of business mileage (that increases to 26,000km from 2023) and you pay tax on that amount, based on your own individual tax circumstances. As a rule of thumb, it costs the driver roughly half the amount on the payslip.



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