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BIK RATES FOR 2023!! CAREFUL!

Horse1920

Hi all,

Don't post much- but the new bik rates for 2023 are set to be eye watering.

Just a warning if anyone is due to order a new company car. Say normal 150bhp (under 139co2) passat or similar on the previous high milage rate of 6% is set to double for 2023.

🙄😒

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arsebiscuits82

2 seats, am I goosed so?

Marcusm

https://www.boards.ie/discussion/comment/119437824#Comment_119437824

How many seats does it have? Tax Appeal Commission decision this week that such cars are not vans for BIK purposes meaning a much higher level of BIK. A 2 seater has not been challenged by any SUV based “commercials” with a second row of seats is now certain to attract full BIK and not the 5% applicable to vans.

Casati

https://www.boards.ie/discussion/comment/119437824#Comment_119437824

I can see a lot of company car drivers basically forced into commercial SUV's like Land Cruisers where they will be burning maybe twice the fuel of their current super efficient Octavia TDI/ 3 series/ Mondeo etc.

Not ideal from an environmental perspective but I wouldn't be blaming somebody who can't afford these mad BIK rates

GC2022

Hi,

currently in process of changing my company car and wondering what is the best type of car to go for to help keep BIK lowish? Currently do over 52KM a year and looking at something that falls into band C of the emissions which will have the BIK 12%. Seems to be the best option unless going for a commercial 2 seater at 8%. Do plug in Hybrids have a lower Co2?

ba_barabus

Thanks for that, it's all stuff I've never dealt with before do I have the week to decide.

Damien360

https://www.boards.ie/discussion/comment/119499105#Comment_119499105

50k plus is what I cover per year every year for the last 20 odd years. What’s the lease price budget ? Lease prices have gone nuts in the last few years. I look at cars as my toolbox. I want a comfy one but don’t want it to cost me money (that’s difficult to achieve now as I pay the difference between the allowance and the lease price). VW/Seat/Skoda kodiaq or it’s equivalent is comfy. Skoda Suberb is a mighty machine (last 2 were this) but it’s lease price was actually more than the kodiaq so it made no sense. Just about gets under the company lease price allowance for my level. Once you are over 52k per year mileage it fails to be a benefit and you need some comfort. Managers mileage has fallen off a cliff due to covid (customers happier online meetings) and it won’t rise back out so be aware of that. Either way you will be in a rental (paying BIK on that) until you eventually get your own order. That timeline is about 6 to 8 months right now. See if you can get the lease price incl vat pricing and not just the car value to guide you. Leaseplan have this but not sure about others.

L1011

https://www.boards.ie/discussion/comment/119498859#Comment_119498859

If a brand is advertising now, in August when there's no big demand, they probably have something available. I've seen or heard Nissan, Skoda and Toyota ads. Skodas one was specifically stating they have some availabilty.

ba_barabus

Just praying I don't end up like this guy

https://www.youtube.com/watch?v=nMCFeoR9oSg

ba_barabus

https://www.boards.ie/discussion/comment/119499073#Comment_119499073

All I can work out is it'll be a hell of a lot of miles, 50k plus easily. I've been on the public sector rate for 5 years which is fine but after you leave the upper limits it turns to dirt and isn't worth it. Definetly needs to be a fleet car but I just don't know what car it'll be. I'll be in the upper rates as well.

Damien360

https://www.boards.ie/discussion/comment/119498883#Comment_119498883

You need to look carefully at your mileage per year. If it’s small, you may be better off getting your own car and getting the civil service rate for actual mileage driven. That way you have no BIK. It’s a balancing act whereby it makes more sense to get a fleet car if you do a lot of mileage. Value of the car when it’s fleet and it’s emmision band matters for actual coats to you. If you pay tax at upper rate, then whatever percentage you calculate, half the payment to calculate what comes out of your pay packet.

ba_barabus

https://www.boards.ie/discussion/comment/119498875#Comment_119498875

Interesting, I've a position offered to me and they're making a big deal about the company car. I don't know any specifics about how that works, I assume I'd be getting a new car I just don't know what they'd offered or how the BIK all works.

Damien360

https://www.boards.ie/discussion/comment/119498859#Comment_119498859

Little to no supply of anything. Long waits over 6/8 months for a couple of my colleagues.

ba_barabus

I wonder what cars are available for immediate delivery on lease given the supply issues?

kennethsmyth

https://www.boards.ie/discussion/comment/119438499#Comment_119438499

Its 8 years and 160,000kms also plenty have done much higher - this was a taxi which fast charged multiple times a day.

R.O.R

https://www.boards.ie/discussion/comment/119488133#Comment_119488133

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.

dondondow

Hi So if someone has a company car Electric Vehicle , personal use, no business mileage.

At the moment is paying 0 BIK at the moment, In Jan 2023 will there they be taxed BIK22.5%?

CO2 Emissions0 g/km Citroen C4 Electric

Damien360

https://www.boards.ie/discussion/comment/119438499#Comment_119438499

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.

SachaJ

For those thinking about EV's make sure and look at the battery warrenty. Saw a post on Reddit today of someone getting stung for €14k on a new battery for a Nissan Leaf. 4 year old car but they offer a 5 year or 100,000km warrenty on the battery. They'd done 165,000km

arsebiscuits82

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.

L1011

https://www.boards.ie/discussion/comment/118711438#Comment_118711438

I'd be astounded if there is an EU country that doesn't do it.

Company cars that allow personal use are a benefit, and basically every benefit is taxed (even medical insurance, which you can then claim some tax relief against!).

arsebiscuits82

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%!

Xithus

https://www.boards.ie/discussion/2058228171/bik-rates-for-2023-careful

I'm trying to go electric myself and one of the reasons is this incoming BIK change. The problem I have is the place I work isn't very forward thinking in that regard and so far they've maintained they won't pay to charge an electric car if we get one. I asked this over in electric cars but maybe here is better. Does anyone else company pay a rate or lump sum toward the charging of an electric car, at home or otherwise?

Damien360

https://www.boards.ie/discussion/comment/118712452#Comment_118712452

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.

Patrick2010

https://www.boards.ie/discussion/comment/118712452#Comment_118712452

Assume anyone buying a used will be claiming mileage from the company?. Back in the day I switched from a company car to providing my own and claiming mileage using civil service allowed rates and found it much more cost effective.

drunkmonkey

https://www.boards.ie/discussion/comment/118710342#Comment_118710342

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.

Marcusm

https://www.boards.ie/discussion/comment/118710342#Comment_118710342

Personal use absolutely has to do with it. If your employer prohibits personal use and ensures that the rule is followed then there is zero BIK.

athlone573

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

Damien360

https://www.boards.ie/discussion/comment/118711561#Comment_118711561

If you are working a small local area then leaving the car at the employers place of business does get around this. It would be odd for anything but vans to be provided in a small local area. But if you are travelling, then you work from home. Vans were fixed at 6% BIK but doing 50k per year in a van is painful.

poppers

https://www.boards.ie/discussion/comment/118711493#Comment_118711493

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%.

athlone573

What are the ways around this? Get a van or leave the company car at work overnight?