BIK RATES FOR 2023!! CAREFUL!

Do the new rates apply to existing vehicles?

( Because I feel an ouch coming)

Government needs to allow VAT to be reclaimed on petrol and it would be problem solved really

what is it? in a nutshell...anything to do with motor tax?

No. It’s a tax on individuals with company cars. Personal use has nothing to do with it. That’s the service industry (keeping lots of equipment working) and pretty much every salesperson.

Doing 50000km per year in a Passat is considered a luxury and you get taxed for doing this. It was 6% of the brand new value of the car every year as a minimum and is now going to hit 13.5% every year. Most fleet cars are 3 to 4 year contracts.

I’m considering getting rid of my one at the end of Leaseplan contract and going to get an old second hand one. I won’t be the only one listening to a few colleagues so I reckon the second hand market is only going to get more expensive than it currently is.

The company pays for the car/diesel/insurance/tax etc and the employee is taxed for the use as this is classed as a non cash benefit

The company pays for the car, the employee pays more tax for the benefit of using

Employee. Going to be some huge hits on existing cars. Im on 6% atm doing 48-50k per year in. but going by above table ill be taxed at 20%.

Next question what's the definition of a van. Rip out the back seats and black out the windows?!

Getting a used isn't much of a benefit as your still paying the bik on it's new price then you've all the running costs and depreciation, new company car still probably makes sense.

From a bik perspective something like a plug in looks very tempting, 330e etc, my bik is taking a big jump on my current car from about 410 to 760, also the company can't claim the full depreciation as it falls into band f.

It's a hard time to buy a car was looking at one yesterday, wouldn't arrive until July and is 4k more expensive than today's price with less included options.

No. Getting a used car that I buy does not have any BIK so not getting a company/fleet car is the best option. That’s going to hammer main dealers for new cars if everyone does the same. Claiming for mileage at civil service rates is fine up to about 35kms and then it starts to cost, especially with new diesel pricing. The only balance for the user is buy cheap enough and keep it much longer. EV’s are useless for those doing 50-60k per year and even more so if you are not on the same site every day.

Just found out about this today. Am I correct that a 2 seater commercial jeep is only going up to 8% and a crew cab will still be mileage based but with emissions added? Need to let one of the lads at work know what’s coming!

if the 2 seater goes to mileage and emissions I’ll be paying 30%!

if you get the right vehicle it’s great. For around €100 a month after tax I have a 221 lwb land cruiser commercial.

No way I could afford to buy, tax, insure, fuel and service it myself. Some weeks I’d fill it twice which is around €150 a pop.

I also have the benefit of having no restrictions on private use within reason. A few trips up the country a year does me and I’d put 50€ into it myself on those occasions just to show I don’t abuse it.

Think that was a taxi driver.

I’m with Leaseplan and it’s a 4 year lease. The car has warranty typically for 3 years or 100,000km whichever comes first. The car is usually changed at 160,000km. So the battery warranty won’t bother the lease companies too much. It may actually effect residual value on resale.

with the new BIK rates, I and some of my colleagues are seriously considering buying our own cars instead of leasing. To make it work for 50-55000km per year, even with full mileage rate applied, the max value of car has to be in the region of 25k. That means second hand market is going to get busier for everyone. It has to be diesel as no EV has the flexibility required to do that mileage per year. Also, you won’t get an efficient EV for 25k.

In the above scenario, currently the driver is paying BIK @ 30% , but the first €50,000 of the retail price of the vehicle is being charged @ 0%. As the retail price is less than €50,000 there's no BIK due.

Next year, the 30% BIK for those with limited business mileage, falls to 22.5%, but the 0% BIK is only on the first €35,000 of the retail price.

In 2024, the 0% BIK is only on the first €20,000 of the retail price

In 2025, the 0% BIK is only on the first €10,000 of the retail price

In 2026, there is no 0% BIK rate so the full retail price of the vehicle will be charged at the rate of 22.5%, in most cases.

Taking a C4 ë-C4 FEEL Pack 50kWh 136 as an example. Retail price is €42,020 and add €655 for metallic, giving a total of €42,675.

In 2022 there will be a figure of €0 on your monthly payslip

In 2023 there will be a figure of €144 on your monthly payslip

In 2024 there will be a figure of €425 on your monthly payslip

In 2025 there will be a figure of €613 on your monthly payslip

In 2026 there will be a figure of €800 on your monthly payslip

These figures are for someone doing less than 24,000km per year of business mileage (that increases to 26,000km from 2023) and you pay tax on that amount, based on your own individual tax circumstances. As a rule of thumb, it costs the driver roughly half the amount on the payslip.