Budget 2026 and EV's

KCross

Is that new A1 category a good thing? I guess it is?

And another few years of income tax relief for excess electricity sold back to the grid.

REFLINE1

https://www.boards.ie/discussion/2058426215/budget-2026-and-evs

its a good thing if you drive an EV as a company vehicle.

KCross

https://www.boards.ie/discussion/comment/123886105#Comment_123886105

What I was getting at was… is it better than the existing BIK system that is in place… we already have BIK relief on EV's. Just wasnt sure if this new A1 category was better or worse than the existing system?

REFLINE1

https://www.boards.ie/discussion/comment/123886115#Comment_123886115

yes new A1 rate band will range from 6% to 15%. the lowest A band now is 9%-22.5% depending on business km's travelled.

drunkmonkey

are they dropping the base EV bik threshold from 35k, I don’t see it mentioned anywhere.

The 10k is just the leaving the temporary measure that benefits everyone paying bik, not just EV’s, no?

Not sure I’d spin it as a win for ev’s just yet until we have all the details.

REFLINE1

https://www.boards.ie/discussion/comment/123886184#Comment_123886184

I don't think there's any change to the plan to phase the 35000 EV relief down to 20,000 in 2026 and 10,000 in 2027. the additional 10,000 omv relief was due to end this year but now has been extended. like you say the devil will be in the detail

KCross

Additional info but not sure it answers your question

I think the €35k you mention is gone and they are just extending out the tapering to 2028 whereas it was due to fall off a cliff before then.

The real change I guess is this new A1 category and the fine detail of that.

REFLINE1

https://www.boards.ie/discussion/comment/123886359#Comment_123886359

https://www.boards.ie/discussion/comment/123886359#Comment_123886359

I understood they are two sperate reliefs. the 35k EV relief will be 20k in 2026 and now as a result of the budget will have an additional 10k relief in 2026. So BIK (with new rates A1 band) will be applied to OMV- 30k. in 2027 it will apply to OMV- 15k. If its like you describe then any EV company car driver will be much worse off next year.

Buddy Bubs

I just ran some very quick numbers for the EV drivers in work

The reduced exemption figures are more or less offset by the new lower A1 category for most of us and BIK continues to be minimal to be honest.

I'll do the numbers properly for each vehicle tomorrow

drunkmonkey

It's going to go up a little bit, i'm in the under 26,000km category, car is valued at 50k so paying 22.5% on 5k notional at the moment, that's going to move to 15% on 20k next year by the looks of it. I make it about €58 a week notional pay for next year where it's currently around €22 per week.

REFLINE1

https://www.boards.ie/discussion/comment/123886569#Comment_123886569

ya I think thats correct

Ev fan

https://www.boards.ie/discussion/2058426215/budget-2026-and-evs

I posted a newspaper article a while back here which suggested that relief may not be extended so this is good news. One thing I'm confused about- is the tax free allowance eur 200 or 400 per household?

KCross

https://www.boards.ie/discussion/comment/123896720#Comment_123896720

€400

And can be multiples of that if you add more adults to the bill.

Ev fan

https://www.boards.ie/discussion/comment/123898436#Comment_123898436

Many thanks for clarifying this for me. My wife and I are on the electric bill so that should cover us. I hope though that the mcg rates continue for as long as possible as I believe it is likely that they will fall in the future. On a separate note if you don't mind me asking what's your current long term efficiency on the GTX- mine is currently 6.1km/kWh on the Born which I know will start going South as we're heading towards the winter. You have a more efficient motor so I'd expect it to a good bit better?

KCross

https://www.boards.ie/discussion/comment/123899030#Comment_123899030

what's your current long term efficiency on the GTX- mine is currently 6.1km/kWh on the Born which I know will start going South as we're heading towards the winter. You have a more efficient motor so I'd expect it to a good bit better?

20k km's and 17.4kWh/100km

Those figures depend very much on your driving style though.. I do alot of motorway.

For example, motorway run from Dublin was 16.3kWh/100km.

Im not sure I believe much about the more efficient motor. The 20in wheels is going to negate some of that too.

I dont care much about efficiency figures. You're not going to notice 10% difference in efficiency in terms of money and it doesnt really matter in terms of range either when its a car that can do 400km's on the motorway!

Ev fan

https://www.boards.ie/discussion/comment/123899759#Comment_123899759

17.4kWh/100km equates to close to 5.8km/kWh but as you say you do a lot of motorway mileage in that. I must check it out again but I doubt that I'd get much more than 5km/kWh at motorway speeds in the Born (19" wheels). You're right of course that the cost difference is small especially if you're charging up at home. Doug Munro was very complimentary of the new motor in a YouTube video a while back and was particularly impressed with the engineering precision achieved by VW with the motor. Thanks for the info.

Ricey3509

https://www.boards.ie/discussion/comment/123899759#Comment_123899759

our GTX performance after 7k is showing 15.8 long term (mixed motorway and urban)

M83K

https://www.boards.ie/discussion/comment/123898436#Comment_123898436

Is there a sneaky change to this in the Finance Bill today? The exemption now seems to refer to a household rather than an individual.

ELM327

https://www.boards.ie/discussion/comment/123911427#Comment_123911427

No, and that's why you can't rely on commentaries online. The actual text in the bill itself is:

"Amendment of section 216D of Principal Act (certain profits of micro-generation of electricity) 11. Section 216D of the Principal Act is amended, in subsection (1), in the definition of “relevant period”, by the substitution of “31 December 2028” for “31 December 2025”."

So the only change is the timeframe.