BIK 0% Going - Is electric gone as company car option?

brokenangel

So I have electric company car, its up for renewal in 2023 and looking at option due to the supply issues. The prices are crazy, with 0% BIK going then an electric car is going to cost more than an equivalent combustion car.

Plus with company car you don't get the money off the purchase price you would get if buying personal.

So at this stage is it better just to move back to combustion for tax reasons?

drunkmonkey

I'm not seeing how you'll work out better with a full combustion engine from 2023 as the bik rates are changing, Full Electric and Plug in hybrids will attract the lowest bik rates.

Capt'n Midnight

The big exemption is to use a genuine car pool

If your employee uses an employer-provided vehicle in a car-pool they do not have to pay Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on this benefit.

brokenangel

https://www.boards.ie/discussion/comment/119093004#Comment_119093004

30% on a combustion car

from what I can gather on the website come 2025 the Electric will be the same only the OMV will be higher

brokenangel

https://www.boards.ie/discussion/comment/119093329#Comment_119093329

Yes, our company doesn’t offer

Casati

BIK increases for all cars make it very hard to see how any company car makes financial sense. Can you get mileage or would a commercial work?

brokenangel

https://www.boards.ie/discussion/comment/119096061#Comment_119096061

I can get a monthly payment plus mileage so I think that’s the way to go

Faiche Ro

I assume there'll be no change to the BIK in today's budget? The lack of leaks is usually a sign

innrain

https://www.boards.ie/discussion/comment/119670390#Comment_119670390

You mean no change in the plans to scrap it?

Faiche Ro

https://www.boards.ie/discussion/comment/119670423#Comment_119670423

Sorry - ya no change to the plans to taper it off over the next few years.

highdef

https://www.boards.ie/discussion/comment/119096061#Comment_119096061

I've driven car derived company supplied vans for the past 15 years. Whilst BIK is to rise from 5% to 8%, this is still far less than the equivalent if I had seats in the back.