Reconciliation of BIK on sale of Company Car

KurstKen · 2021-05-20 13:29:12

Hi, Has anyone sold a company car and had to have a reconciliation of total BIK paid? I am about to sell a company car (as a company director/employee) and wondered if a reconciliation of the amount paid by me in BIK over the lifetime (of my ownership) of the car will be made, with reference to kilometres travelled etc.…

20-05-2021 02:29PM

#1

KurstKen

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Hi,

Has anyone sold a company car and had to have a reconciliation of total BIK paid?

I am about to sell a company car (as a company director/employee) and wondered if a reconciliation of the amount paid by me in BIK over the lifetime (of my ownership) of the car will be made, with reference to kilometres travelled etc.

Thanks!

K.

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#2 21-05-2021 09:06AM

[Deleted User]
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Ideally BIK on the car should be calculated and paid based on distance travelled in each pay period (Week/Month etc). In reality it should be reconciled at the end of each tax year, any correction in your final payslip for the year. Of course there is nothing to stop Revenue from landing in your front door and spotting you calculated BIK for 3 years based on 50K per year and sold a 3 year old with 100k on the clock.

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#3 21-05-2021 02:54PM

KurstKen

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Thanks Tow.

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