Car BIK

BobMc

Hi All, company car is on offer for first time ever, trying to weigh up options etc, and calculations, Finance are saying best relief is on an EV, already have a PHEV and charger at home so not averse to a full ev, On the calcs side read some threads and revenue online and I think i'm on correct track with my calcs

for example if we go Toyota Bz4X OMV 48000 looks like relief for EV for 2024 and 2025 is less 35000, so 48k - 35k 13000 taxed at cat a 22.5% and low below 26000km per year, BIK is 2925.00 for the year? does that just get added to payslip monthly 244.00 and taxed for usual PSRI PAYE USC etc?

Year 3 2026 would only be relief of 20k of OMV so 28000 @ 22.5% 6300k for year

have I got this right

Buddy Bubs

Yeah you've got it pretty much spot on.

Your tax paid would be whatever rate your marginal rate is on 2925 until end of 2025 and on 6300 in 2026, assuming policies don't change in the meantime

So tax bill.probabky of around 1500 euro in 24 and 25 for a full year and 3000 in 26 give or take a few euro.

EVs are the only show in town nowadays for company cars, the others are too expensive

R.O.R

Will your mileage cope with a full EV? If so, that's the way to go.

Full retail on the BZ4X, including metallic is €49,743

Currently, €10,000 can be taken off that figure leaving €39,743. 10% can be taken off that for fleet discount, leaving €35,768.70.

The first €35,000 on a full EV is 0%, meaning you are liable for BIK @ 22.5% on €768.70 each year.

Annual liability is €172.96 - monthly BIK liability (the figure you'll see on your payslip) is €14.41 and as a rough estimate, it costs the driver, out of their back pocket, about 50% of the amount on their payslip. Essentially €7.21 for a company car each month, until the end of this year.

If there are no changes in the next budget, from January 2025 you would be liable for BIK @ 22.5% on the full retail (less 10%) - €839 on your payslip. I'd be surprised if it does revert to that next year though and would expect either the current situation extended or a full review of the BIK legislation to make the costs lower for drivers.

To calculate the BIK on a PHEV, take the full retail including any options, take 10% off, multiply that by 22.5% and divide the result by 12, to find the figure going on your payslip.

Pricing on the ID4 has just dropped down to a reasonable level, so worth having a look at that one as an option.

BobMc

Thanks guys, yeah finance are going to go thru a couple examples based a few vehicle choices and we can go from there, delivery lead times and BIK will dictate choice I guess

drunkmonkey

On that Toyota you should be able to have it with 0 BIK, 35k EV reduction, 10k extra reduction for this year and discount the omsp sales price by a few % to get you down to 45k and 0

Effect of a purchase discount on OMV

If you received a discount when you purchased the vehicle, you may reduce the OMV to reflect the discount received. The maximum discount is usually the amount an ordinary customer would receive when buying one car in a dealership. This amount typically does not exceed 10%.

Higher discounts may be available where you can prove they would have been available to an ordinary retail customer. In cases of doubt, you can agree in advance the level of discount with your Revenue Office.