BIK on EVs.

Radio silence, doesn't look like there'll be any extension this year at least. I'd take that to mean they still want the current scheme to end in 15 months time unless something changes over the next year.

Where are ya getting 2340 from, I am getting 1716 15k X 22% X 52%

Thia is the originally proposed new table from 2023, will it change I wonder/

http://www.irishstatutebook.ie/eli/2019/act/45/section/6/enacted/en/html#sec6.

You could use Revenues VRT calculator (typically used when importing a vehicle). This will provide you with the Open Market Selling Price (OMSP) determined by Revenue, which is the basis for calculating VRT. Note you need the Original OMSP - not the current OMSP (it will be the higher number of the two)

https://www.ros.ie/evrt-enquiry/vrtenquiry.html?execution=e1s4

https://www.simi.ie/en/motorstats/recommended-price-guide

The BIK is somewhat confusing.

So if for example the OMV when new in 2021 was say 40k.

What it looks like to me, is as follows:

where someone does zero business mileage and has a company EV car.

2021, 0 BIK as OMV under 50k

2022- as above

2023 35k exempt,BIK =5k (40-35)x 22%, so taxable on €1,100

2024 20k exempt, BIK=20k (40-20)x 22%%, so taxable on € 4,400

2025, 10k exempt, BIK=30k(40-10) x 22%, so taxable on €6,600

Even at the 2025 rates, the maximum tax is about 3.5k in tax/usc/prsi, that doesent sound bad, for a newish car, no monthly repayments , no insurance or motor tax to pay, no servicing, tyres or maintenancr, and employee can charge up at work.

If one bought a new EV today for 40k, it would cost a lot more than 3.5k per year.

In fact, this would encourage people to get newer cars, as paying the same BIK, for a new 40k EV, as a 5 year old EV.

It is inevitable that EV ownership & operating costs will slowly increase (or actually normalise) as incentives & subsidies are tapered off. As we transition the fleet from ICE to EV, the Govt is going to need to replace the revenue (just wait until a user pays charge is introduced to replace lost fuel revenue).

This will also be counterbalanced by ICE ownership & operating costs increasing to encourage the shift to EV. To me its a question of getting the balance right for the Government. ie. a mix of carrot and stick.

Of course I want the EV gravy train to run as long as possible, but also a realist that it cant last...

22 % is the reduced BIK % maximum, on EV’s under 50k, so Employee is saving 8%, as it would be 30% on an ICE vehicle.

Bottom line, if one can get a company EV under 40k, when you take depreciation and all the other ongoing costs into account, its still better than buying it yourself. In my example above depreciation alone, would be much more than 3.5 k a year.

I’d also guess, the additional relief for EV’s may be extended beyond 2025, if we are not meeting targets, then this may need to be relaxed.

I think, the government by their policies, are saying basically, if you have an expensive EV, you don’t get a reduced BIK relief.

So, i understand a basic ID3 Life for example, is still under 40k as the 5k SEAI grant is added back for commercial purchasers ? I could be incorrect on this?

Bit its true there are not that many who come under 40k, but i suspect prices for entry level EV’s, will reduce overtime as battery tech becomes cheaper.

Is the OMV for BIK purposes the vehicle price plus the VRT?

From Revenue website:

There are a lot of new EV models coming to market over the next 18 months. Granted many wont be at the €35K mark, but there will be some. Expect to see a couple of Chinese brands make their debut here with cheap EVs. Effectively what the Koreans did in the 2000s and the Japanese a couple of decades earlier.

I would love to see the EV BIK gravy train roll on, but the fact is our Govt has a harsh track record in their tax treatment of the Irish motorist.

There was a real expectation / hope that EV prices would tumble, but if anything, they appear to be going the opposite way. Tech and range might be increasing, but all at a price.

I'm new to this bik lark and thinking of buying an ionq 5 for the business but unfortunately there's probably none to be had until 2023. I presume there's no way of paying in advance now to avail of the current 0% bik?

I bought a Kona EV in 2019 through my company, so that will be 4 years by time 2023 changes come in.

I think you're allowed calculate depreciation of 12.5% pa, so that would be a 50% reduction. Does that mean if I wanted to buy the car personally, I'd have to pay my company 50% of OMV?

Well had a quick drive of the ionq 5 and have mixed feelings. Spacious interior and good acceleration compared to my Peugeot but not gone on the interior - lots of hard plastics and really don't like the white bezels on the screen and tacky looking spray painted silver buttons. Present car has full leather and much more premium interior. Anyway the wife is going to have a look tomorrow.