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BIK HELP

Lightscribe

I'm driving company cars for about 20 years and I'm embarrassed to say I still don't fully understand how much BIK I'm paying in real cash terms weekly/monthly.

My current car is valued at approx €22k (including the €10k discount the government granted) On the positive side of my payslip is €320 for BIK. I'm on high rate BIK as I do very low mileage. How much of that is actual cash off my nett pay?

If I was to change to a car valued €10k more than my current one how much would I be paying extra.

Thanks for reading, if I need to give additional information I'm happy to do so.

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[Deleted User]

About half, assuming you are the higher tax rate. So 160 euro.
Depends on multiple other factors.

Buddy Bubs

Whats the 10k government discount? Are you driving an EV? Your payslip doesn't suggest so.

22k you mention may be irrelevant, the bik is based on the value of the car when brand new, I don't know many 22k cars these days.

Likewise, your 10k increase if changing cars might be far higher than 32k

Lightscribe

No, not an EV. Government allowed €10k discount off the OMV of company cars to ease the burden of BIK during the cost of living crisis so the actual value of my car is approx €32k.

Potential cost of new car is approx €42k.

[Deleted User]

The 10k discount was added last year when people kicked up a fuss about when the BIK change to take car's CO2 band into account. They continued the 10k discount this year.

It is possible some people never got the discount last year, as it introduced mid year.

Buddy Bubs

https://www.boards.ie/discussion/comment/122210592#Comment_122210592

Ah yeah I remember now

Lenar3556

As regards any new car, you would need to look at all the factors. Particularly;

The OMV of the new car.

The CO2 band of the new car.

The anticipated discontinuation of the 10k reduction in OMV calc from next year.

Your planned business mileage.

You could be paying quite a bit more. In general terms the benefit of a company car is now what it used to be.

Lightscribe

I agree the value has been somewhat eroded when it comes to a company car but my view has always been that I wouldn't have a new car outside the house for the tax I'm paying on it.

OMV of €42k

Business mileage of <10,000 km

BIK rate of 24%

Co2 band could likely be Category D

If anyone has any ideas on the real cost difference to go from €32k to €42k value and move from Band B to Band D I'd really appreciate it.

DFB-D

https://www.boards.ie/discussion/comment/122221591#Comment_122221591

(42k less 10k) * 33.75% = 10,800 PA

Add that to your gross salary in a salary calculator, or roughly assuming higher rates of tax = 5,508 tax per annum or 459 per month.

Lenar3556

less than 10k business mileage, and Category D Co2 is 33.5%

So €42k * 0.335 / 2. That will give you the ballpark of what it will cost you in net terms. About 7k annually. A lot!