BIK on EVs.

jordan191 · 07-05-2021 03:06PM

As far as i know its the total price, i'm paying bik on our model 3 at total price before any grants were deducted ( portion above 50k threshold), which seems a bit unfair but hey that's life i suppose

rocketspocket · 07-05-2021 03:47PM

Zenith74 wrote: »

Before the SEAI grant but after the VRT "grant"/exemption right?

that is my understanding however as the VRT has changed so there is no longer any 'grants' as such; just a more blended rate for EVs so that question is not longer relevant in 2021 (imo)

Mc-BigE · 08-05-2021 01:38PM

Zenith74 wrote: »

Before the SEAI grant but after the VRT "grant"/exemption right?

It's the original market value before any incentives including the vrt grant, taxable every year you have the car based on the new price at the time of original purchase.

Complete madness for anyone to have a company car that does low mileage, it always was, until the 0% BIK on BEVs came along, all Ltd company directors were either driving diesel crew cabs/vans or using their private car and claiming KM/ substance allowance, revenue clamped down on both the substance and the crew cabs. So all that's left is BEV BIK. Which is now going

Robotfarmer · 08-05-2021 11:11PM

Let's see what happens in the next Budget. It's time the Greens put in some strong policies. It may be their last chance. People are not going to drive BEV's if it hurts their bottom line. People are struggling mentally and financially.

People are not returning to work because PUP pays more when you take travel and lifestyle into account.

It has to make financial sense or People will stick with ICE vehicles

MightyMunster · 09-05-2021 09:28AM

Robotfarmer wrote: »

Let's see what happens in the next Budget. It's time the Greens put in some strong policies. It may be their last chance. People are not going to drive BEV's if it hurts their bottom line. People are struggling mentally and financially.

People are not returning to work because PUP pays more when you take travel and lifestyle into account.

It has to make financial sense or People will stick with ICE vehicles

From what that have done and interviews I've heard the greens have no interest in BEVs. They are more into cycling, public transport and walking. Since they've been in government BEV incentives have only been in decline.

On the other hand incentives for diesel and petrol like VAT back on diesel, mileage based on engine size (more polluting the better) remain untouched.

kop-end · 09-05-2021 09:36AM

MightyMunster wrote: »

From what that have done and interviews I've heard the greens have no interest in BEVs. They are more into cycling, public transport and walking. Since they've been in government BEV incentives have only been in decline.

On the other hand incentives for diesel and petrol like VAT back on diesel, mileage based on engine size (more polluting the better) remain untouched.

Might be an idea for all concerned on here to reach out to their local representatives of the parried in power and try seek some clarification on what they envisage to happen RE: Electric vehicles and BIK in the coming years. I’m still not 100% convinced that even the government are committed to the 22% introduction in January 2023

KCross · 09-05-2021 01:30PM

kop-end wrote: »

I’m still not 100% convinced that even the government are committed to the 22% introduction in January 2023

It is committed though, isn’t it? i.e. It’s already law, not a proposal.

Of course, they could change it again if they see BEV uptake stalling.

kop-end · 09-05-2021 04:54PM

KCross wrote: »

It is committed though, isn’t it? i.e. It’s already law, not a proposal.

Of course, they could change it again if they see BEV uptake stalling.

Got a reply from my local Green Party rep, basically says, there is a plan in place for 2032 (EV BIK 22%) but it’s quite likely it would be extended for a ‘year or two’ and the Greens would support it as a temporary measure.

rocketspocket · 10-05-2021 08:03AM

kop-end wrote: »

Got a reply from my local Green Party rep, basically says, there is a plan in place for 2032 (EV BIK 22%) but it’s quite likely it would be extended for a ‘year or two’ and the Greens would support it as a temporary measure.

extend the 0% BIK for a year or 2?

kop-end · 10-05-2021 09:15AM

rocketspocket wrote: »

extend the 0% BIK for a year or 2?

Seems to be, have a read of the response from Thomas Bibby who works for Brian Leddin TD, Green Party. Seems like everything is up in the air and we all have to wait for Budget 2022 ðŸ˜€

“Dear xxx,
Thanks for contacting the Green Party. My name is Thomas, I work for Brian Leddin TD, and I have been asked to respond to your email. You are correct in that the BIK exemption runs out at the end of this year.
The nature of these measures means that they will be temporary in nature as they are intended to be short term. The price of batteries in particular is decreasing rapidly and we are getting close (but not quite there yet) where fossil fuel cars will be more expensive than EVs to buy and own for the vast majority of purchasers of new vehicles.
I think it’s quite likely that the BIK exemption will be extended for another year or two, and it would be supported by the Green Party as a temporary measure, but of course that is ultimately a decision for the Minister for Finance, and we won’t know for sure until Budget 2022 is announced.
Best wishes,
Thomas.”

--
Thomas Bibby
Parliamentary Assistant to Brian Leddin TD
thomas.bibby@greenparty.ie

rocketspocket · 10-05-2021 12:18PM

kop-end wrote: »

Seems to be, have a read of the response from Thomas Bibby who works for Brian Leddin TD, Green Party. Seems like everything is up in the air and we all have to wait for Budget 2022 &#55357;&#56832;

“Dear xxx,
Thanks for contacting the Green Party. My name is Thomas, I work for Brian Leddin TD, and I have been asked to respond to your email. You are correct in that the BIK exemption runs out at the end of this year.
The nature of these measures means that they will be temporary in nature as they are intended to be short term. The price of batteries in particular is decreasing rapidly and we are getting close (but not quite there yet) where fossil fuel cars will be more expensive than EVs to buy and own for the vast majority of purchasers of new vehicles.
I think it’s quite likely that the BIK exemption will be extended for another year or two, and it would be supported by the Green Party as a temporary measure, but of course that is ultimately a decision for the Minister for Finance, and we won’t know for sure until Budget 2022 is announced.
Best wishes,
Thomas.”

--
Thomas Bibby
Parliamentary Assistant to Brian Leddin TD
thomas.bibby@greenparty.ie

That is much more positive and i think it is worth collectively writing to our TDs about this as the more noise the more the absurdity will be highlighted. In my correspondence, I highlighted the fact that BEV were now to be in the same bracket as diesel burning cars come 2023 which i think was a surprise to him..

I've now bought into the BEV world but if this option wasn't available then i would never even had contemplated an electric car and if, come 2023, you can get a plug-in hybrid in the same BIK tier without any of the range worries then i'd deffo consider going the hybrid route..

kop-end · 17-05-2021 02:09PM

rocketspocket wrote: »

That is much more positive and i think it is worth collectively writing to our TDs about this as the more noise the more the absurdity will be highlighted. In my correspondence, I highlighted the fact that BEV were now to be in the same bracket as diesel burning cars come 2023 which i think was a surprise to him..

I've now bought into the BEV world but if this option wasn't available then i would never even had contemplated an electric car and if, come 2023, you can get a plug-in hybrid in the same BIK tier without any of the range worries then i'd deffo consider going the hybrid route..

The double-edged sword of the removal of 0% BIK rolled in to the possibility of some plug-in Hybrids attaimNing the same BIK level as a full BEV will certainly make some business drivers think twice as the months tick down to Dec 2022.
That being said, another 1 year rolling extension in Budget 2022 would be great news to all looking at this decision in the next 12 months

eoin42 · 18-05-2021 01:45PM

Hi, I think its a great idea to get this on the TDs radar. Would anyone have a template email to send them on this? Hope I'm not being cheeky asking for this. But I'm not sufficiently familiar with all of the facts etc.
Thanks

innrain · 22-06-2021 05:24PM

The Home charger grant now includes use of company car.
https://www.seai.ie/grants/electric-vehicle-grants/electric-vehicle-home-charger-grant/

Just two years too late I'd say but nonetheless employees can benefit. Question: Who pays the difference the company or the employee

Royale with Cheese · 22-06-2021 05:56PM

Does that include proprietary directors? I'm still an employee of my own company using its car. I bought the car 18 months ago but have just moved into a house with its own driveway so would be great timing if this were allowed.

innrain · 22-06-2021 07:41PM

Royale with Cheese wrote: »

Does that include proprietary directors? I'm still an employee of my own company using its car. I bought the car 18 months ago but have just moved into a house with its own driveway so would be great timing if this were allowed.

I'd say so.

kop-end · 27-06-2021 10:43AM

rocketspocket wrote: »

That is much more positive and i think it is worth collectively writing to our TDs about this as the more noise the more the absurdity will be highlighted. In my correspondence, I highlighted the fact that BEV were now to be in the same bracket as diesel burning cars come 2023 which i think was a surprise to him..

I've now bought into the BEV world but if this option wasn't available then i would never even had contemplated an electric car and if, come 2023, you can get a plug-in hybrid in the same BIK tier without any of the range worries then i'd deffo consider going the hybrid route..

I was happy to see the battery grant available for company EV drivers, it’s a positive move that the goverment are looking at a long term plan for for EV adoption as the company driver market will be a huge catalyst for this, I was beginning to get a bit worried of the current tones coming from the Greens may seem to contradict what was is my their Original reply to me a few months back. I wonder if they are playing hardball on other issues with the upcoming budget.

wassie · 21-07-2021 12:50PM

Independent is reporting on some positive noises being made within Govt Departments of the use of supports to increase electric vehicles uptake via the vehicle leasing industry.

The Vehicle Leasing Association of Ireland (VLAI) provided a budget submission which requested amongst other things...

...clarity on benefit in kind (BIK) for five years and clear incentives for BEVs over ICE vehicles for drivers.

According to the VLAI, BIK is currently zero for EVs under €50,000, but from January 1, 2023, the rate changes to up to 22.5pc. The VLAI believes it should be at 8pc for five years following 2023 and then be increased incrementally.

I'd take 8% for 5 years any day of the week, however I don't think Govt would stretch that far.

mossy464 · 24-08-2021 10:56AM

Question, is the bik on the price of the vehicle or would it include delivery charges.

Looking at an ID4 and delivery and related charges bring it over 50k.

innrain · 24-08-2021 11:12AM

https://www.boards.ie/discussion/comment/117796468#Comment_117796468

No delivery chargers but is before the grant.

mossy464 · 24-08-2021 11:46AM

https://www.boards.ie/discussion/comment/117796545#Comment_117796545

Yep no grant for company purchases

innrain · 24-08-2021 12:40PM

https://www.boards.ie/discussion/comment/117796700#Comment_117796700

Right silly me. Forgot about that.

Zenith74 · 24-08-2021 04:27PM

https://www.boards.ie/discussion/comment/114844233#Comment_114844233

I got a reply from the Dept of Finance today to confirm that the wording on the Revenue website (which implied you needed to give the employee the car in 2020 to qualify for 0% BIK) was indeed a mistake and has now been corrected (which it has!).

championc · 24-08-2021 05:33PM

Would be nice if they added a few years onto 2022

mossy464 · 24-08-2021 05:46PM

https://www.boards.ie/discussion/comment/117796898#Comment_117796898

The VRT rebate applies though. Is the price for BIK purposes before that rebate?

innrain · 24-08-2021 09:27PM

Yes but that gets reduced to zero if the original price is above 50k.

harderthanf · 30-08-2021 11:52AM

No doubt a silly question but if I get a company car before the end of the year, will the BIK never be applied? That is, is the BIK only applied from the purchase date of the car or will people who already have EVs (and 0% BIK) all be required to pay BIK from 2022?

wassie · 30-08-2021 01:18PM

Your question is a bit confusing (which is understandable if you are new to the whole BIK concept). Generally speaking, BIK should be taken out of your salary as additional tax as soon as you are in receipt of the benefit i.e. when you start using the company car.

Since Jan 2019, Revenue modernisation of the PAYE tax system has required employers to report PAYE in real-time. What this means is that instead of a year-end reporting obligation, employers are now expected to submit a return each payday. You should discuss this with your payroll officer as to how it will apply for your own specific circumstances.

If your company car is an EV, then it is currently eligible for an BIK exemption up to a purchase price of €50K until the end of 2022. Anything over that will attract BIK. (eg purchase price €57k - €50k = €7k. BIK would apply on the €7k).

From 2023 onwards this exemption is currently due to expire and a BIK rate for all EVs is proposed to be 22.5%. (i.e. on the example above BIK would apply on €57k). This may be revised downward the coming budget but it is very much wait and see at the moment. I'm no expert in the area and happy to be corrected on any of the above.

championc · 16-09-2021 05:45PM

Looking promising for a three year extension to the BIK exemption - see last two paragraphs

RTE news : Cost of diesel and petrol to rise from next month

http://www.rte.ie/news/business/2021/0916/1247219-cost-of-diesel-and-petrol-to-rise-from-next-month/

ruaneg · 17-09-2021 10:03AM

Thanks @championc, Im keeping a close eye on this too, thats very promising.

Assuming they keep the BIK at 0% it would make it very attractive to buy. For those of us buying through a company and not getting the grants, is it better to buy this year or next for cars in the 40k range ?

BIK on EVs.

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