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BIK on crew cab jeeps.

  • 06-01-2010 10:48PM
    #1
    hughey100
    Closed Accounts Posts: 4 ✭


    I work as a plumber and was thinking of buying a crew cab toyota hilux for work. It would be getting taxed commercially. I also own a seperate car for personal use. Would I be liable for BIK on the jeep, or would I be be better off just buying a 2 seater commercial jeep.
    Thanks for any feedback.


Comments

  • #2
    mickbyrne
    Closed Accounts Posts: 160 ✭✭mickbyrne


    Assuming you have a limted co and would be buying the crew cab through it you would be liable for BIK unless you can prove that you do not have any personal use of it. Which the revenue will not easily accept.

    If your place of work is separate from your house and you can prove that you drive in your car to there everymorning and get your tools etc and crewcab and the evening you leave the crew cab there and drive home in your car then you would be ok. But then what would be the point of having the crew cab in the first place?

    BIK on crew cabs are calculated in the same manner as cars.


  • #3
    Rujib1
    Closed Accounts Posts: 369 ✭✭Rujib1


    mickbyrne wrote: »
    BIK on crew cabs are calculated in the same manner as cars.

    Am I right, in assuming BIK, on 2 seater Landcruiser, commercially taxed, is at 5% of original new purchase price.

    Thanks

    R1


  • #4
    cir287
    Registered Users, Registered Users 2 Posts: 53 ✭✭cir287


    I'm a bit confused here, or maybe I'm not !
    Revenue state that BIK on a crewcab is calculated off 30%, however if I wish to tax a crewcab commercially I need to sign a declaration stating that it will only be used for business purposes etc otherwise I have to tax privately.
    So why is BIK chargable on a vehicle that is used solely for business purposes ???

    It appears a complete contradiction to me, I assume that is exactly what it is and it is chargable for no other reason other than because they can ???

    anyone any other take on this ?


  • #5
    Toblerone1978
    Registered Users, Registered Users 2 Posts: 685 ✭✭✭Toblerone1978


    Rujib1 wrote: »
    Am I right, in assuming BIK, on 2 seater Landcruiser, commercially taxed, is at 5% of original new purchase price.

    Thanks

    R1

    R1, depending on various requirements being met (which seem like on your description above), then yes, 5% of Original Market Value (OMV being the cost of the vehicle when it left the garage) can apply. Again, assuming its a limited company and not the driver that owns the vehicle.
    cir287 wrote: »
    It appears a complete contradiction to me, I assume that is exactly what it is and it is chargable for no other reason other than because they can ???

    anyone any other take on this ?

    You right, there is a contradiction. Eamon O Cuiv did a terrible job of defending this on the Last Word a couple of months ago, when Matt Cooper asked him about it.

    Matt wasn't coming from a BIK angle but if a person pulled into the supermarket to buy a pint of milk, does that mean they have to pay the private rate.


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