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

Help with BIK calculation

  • 20-12-2023 1:13pm
    #1
    Eleusis
    Registered Users, Registered Users 2 Posts: 356 ✭✭


    Anyone who has expereince with this help with figuring out BIK for me. I cant seem to wrap my head around it.

    Thinking of getting my business to buy a car. It has OMV of €56860. Its a 2020 car. I would be using it for approx 5000 business km and likely another 15k personal Km usage.



Comments

  • #2
    Lenar3556
    Registered Users, Registered Users 2 Posts: 1,712 ✭✭✭Lenar3556


    It will depend on the emissions category of the car in question. See: https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/private-use-company-cars/calculate-value-benefit.aspx

    As a rough example, if the car was in category C;

    Reduce OMV by 10k for 2024 year.

    €46860 x 30% = €14,058. This sum is treated as notional income and you pay Income tax, USC and PRSI on it. For people in the 40% tax bracket, it’s roughly half. So the BIK cost to the employee on that car is about €7k annually in net terms.



  • #3
    drunkmonkey
    Registered Users, Registered Users 2 Posts: 28,694 ✭✭✭✭drunkmonkey


    Did you do anything with this, bik isn't on the omv of the car it's on the new price. So a 2020 Range Rover for 50k you'd be paying bik on the new price of 150k for example.

    Can still make a lot of sense to put it through the business even with little business milage.



  • #4
    Eleusis
    Registered Users, Registered Users 2 Posts: 356 ✭✭Eleusis


    Decided not to go the company car bik route. Did the calculations and financially it didn't seem to make much difference either way.



  • #5
    Lenar3556
    Registered Users, Registered Users 2 Posts: 1,712 ✭✭✭Lenar3556


    https://www.boards.ie/discussion/comment/121591041#Comment_121591041

    Yes - OMV is original market value in this context.

    A company car with low business mileage - does it really make sense any more?



Advertisement