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BIK- how is this taxed?

  • 11-10-2011 09:09PM
    #1
    curlybob
    Registered Users, Registered Users 2 Posts: 64 ✭✭


    Hi there,

    I was just wondering how BIK is taxed-

    I am currently on the 6% rate with a company car of original value of €15,800 1.4 Diesel renault megane.

    each month I see €79 on my pay slip, but I don't know if I am paying tax on that €79 or if I am paying €79 in total for it? Its not listed with the paye, prsi, and all the levys....

    the reason I am worried is that I will now be going on Maternity leave and the rate I am paying will rise to 30% which is €395....however I dont know is that the figure I have to pay per month I am off or do I pay tax on that amount? and if so what rate?

    so confused, if anyone can help explain this to me I would be most grateful...


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,686 ✭✭✭barneystinson


    The 79quid p.m. is the notional income (ie the deemed value to you of having the use of the car). You are taxed on this amount as if it were extra income.

    So, if/when this amount rises, you'd be taxed on the 395p.m. but this may be offset in your take home pay by the fact that your maternity benefit is not taxable...


  • #3
    curlybob
    Registered Users, Registered Users 2 Posts: 64 ✭✭curlybob


    Thanks, I seem to have got my head around it now, thanks for the help.


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