BIK on EVs.

Augeo wrote: »

If the uptake hasn't been significant than the overall benefit for society is nothing to negligible. The only benefactors are those driving 0% BIK EVs....... in such a case there's no real point continuing with incentivising EVs as company cars.

A lot of EVs currently on the road are company cars, a lot of companies might be in the process of getting a new company car on 3 or 5 year finance.
if the company/employee are going to have to pay 22.5% BIK from Jan 2023 until the end of the finance agreement, then why bother even buying EV this year?

this all effects future second hand EV stocks, which effect the uptake of private buyers, public charging upgrades etc etc.

its a knock-on effect

KCross wrote: »

I never understood why they put EV's in the same CO2 bracket as hybrids for motor tax and now this new BIK scheme as well.

Surely there is a case for having a 0g CO2 bracket and then a 1-59g to cover the PHEV's and hybrids and then ICE above that.

If the policy is to encourage EV's they should have them in a tax band of their own.


The 2023 BIK scheme does seem to be at odds with their plan to get 1m EV's on the road by 2030 as company cars are a significant part of that. Most cars by then will be falling into the A(BEV and PHEV) and B(PHEV and hybrid) categories and there is only 2-4% difference there depending on mileage.... no incentive really.

It could all change between now and 2023 as well when they see what the uptake is. They might see the error of their ways!

Looks to me that it was designed by SIMI and their lobbying to govt is basically designed to not upset their dealers - who lets face it don't want EV's taking on more market share as it will impact the value of their used diesels and petrols. The manner in which E.V.'s are to be sold - i.e. often with fixed pricing is going to erode dealers margins so they will happily sell petrols/ diesel or mild hybrids all day lone

Overall its very disappointing - its madness to split bands due to emissions and then lump in E.V.'s with PHEV's as if they are the same thing. E.V.'s should have a band to their own with a more attractive BIK rate less than 15%.

As others have said, with E.V.'s generally having a higher RRP versus petrol/ diesel, then the BIK paid by an individual is likely to be the same or more as the diesel and unlike a typical company car they will likely be charging it using their own electricity rather than simply filling a car with diesel off a fuel card.

Augeo wrote: »

Could you quantify those in numbers? The eGolf was a tiny seller all considered.
I see none of what you mention tbh and I'm out and about every day throughout the pandemic.

https://www.google.ie/amp/s/www.irishtimes.com/business/construction/sisk-now-offering-more-ev-than-petrol-choices-to-company-car-users-1.4401407%3fmode=amp

One example here planning to have 100 ev’s starting with 10 ID3’s. I’m sure many other companies were under pressure to offer same by employees keen on avoiding BIK

In the U.K. where BIK is lowered for EV’s they have seen big adoption by companies

https://www.fleetalliance.co.uk/news/businesses-lead-charge-electric-vehicle-take/

Augeo wrote: »

To be fair 515 is a tiny amount of cars over a few years.
Let's not lose perspective.

When you say most of the ones you spot, you are talking about two handfuls maybe?

I'm on a large site at the moment (and visit several more regularly) and there's far more PHEV than BEV. The BEV are largely contractors who never had a company car before.

Do you think one site your one is representative of the whole country? What other stats do you have to support your view that’s it’s largely contractors?

No doubt some small business owners who never had company cars are in the mix but certainly larger fleets are not ignoring EV’s especially as their employees would be wanting the benefit of free BIK.

Not sure if this video has been shared in the post before, but this is the UK system for BIK on EV and PHEVS and the UK government have said they will extend the incentive for a few more years. giving companies and employees a little bit of certainty (unlike here) that it will be around for a bit longer.

yes i agree that the 0% BIK system cant be around for ever, but jumping from 0% to 22.5% is far too big. it should be a much smaller jump and increases as the car gets older and closer to its finance finish date.

anyway here it is:
https://youtu.be/8H6HoFMGgnk

I swapped my car allowance for a model 3 last year, purely because the BIK exemption was there. If it wasn't there, I simply wouldn't have taken a company car and would have continued to take the allowance and keep my old car, because I simply wouldn't bear the BIK for 4 years on a regular ICE car lease (I do very minimal business miles, so am up for full whack BIK). I'm now left in the quandary re what to do in 2023 as my lease runs to Sept 2024, and to be honest if I had have expected the exemption not to be extended then I wouldn't have gone ahead with getting the Tesla. That would have left me still driving an ICE car and resulted in one less EV in the country.

Guys, reading the thread and I notice a lot of talk about the government plans for 2023 BIK charges for EV, has anything concrete been mentioned by a minister or party of what the changes could be? I’m changing company vehicles in July 2021 and will likely be a 3 year lease so not sure if I would
Jump from ICE to EV for 18months benefit then to jump back to +\- 21% BIK for the final 18 months on a high value, €44k EV. Any insight is greatl appreciated 😀

Mc-BigE wrote: »

If you go back 2 pages you will see a chart at gives the new C02 based system which (at present) will replace the current 0%bik up to 50k. A lot of us are hopefully that the next 2 budgets, the government will extend the incident for EVs, I'd be happy to pay the same as van BIK

I should have gone back a few pages before I asked that question in fairness, thanks for the input, if I can get half of a 3 year lease at 0% BIK then I would probably still be better off, currently in a company vehicle €34k OMV with hardly and in the low business miles category. Looking at the E-Niro so OMV will be higher than what Inhavr now
for eventual BIK in Jan 2023.

As you say, hopefully the government decide to let the current system roll to 24/25 while the uptake improves.

rocketspocket wrote: »

Here is a response from the Minister of Finance on the matter - not really offering clarity and the wording at the end of the answer gives a slight raise in optimism

https://www.oireachtas.ie/en/debates/question/2020-11-03/420/#pq-answers-420

Thanks for that. So pretty much 22.5% for low mileage EVs in 2023 so., Disappointing.
Btw, Company cars never got 5000 Seai grant, it was 3800 until it was removed a few years ago

rocketspocket wrote: »

Here is a response from the Minister of Finance on the matter - not really offering clarity and the wording at the end of the answer gives a slight raise in optimism

https://www.oireachtas.ie/en/debates/question/2020-11-03/420/#pq-answers-420

Thanks for the update. It seems a shame that a lot of companies/company car drivers have watched the last few years of EV range and model development are now ready to make the switch but the BIK incentive will only last them a maximum of half their lease term (assuming most leases are between 3&5 years)

My own example is that we have 6 fleet vehicles up for renewal in July 2021, four of those drivers are low mileage (-20k a year) who are ready to jump into a Niro/Kona but may pull the plug (no pin intended) if it means they will go back to paying BIK close to what they are currently paying for Octavia'a in Jan 2023.

rocketspocket wrote: »

Wrote to my TD to get clarity post 2022 - He wrote to the Finance minister & this was the response this morning
---

Just to follow up on this we received the following reply from the minister on this;



“In the 2019 Finance Act I extended the 0% BIK rate for electric vehicles to the end of 2022. From January 2023, an emissions-based BIK structure (also provided for in the 2019 Finance Act) takes effect. For the year of assessment 2023 and subsequent years, electric vehicles will fall into the lowest emissions category, and therefore the BIK tax rate will range from 9% to 22.5%, depending on annual kilometres driven. The structure can be accessed at the following link:

http://www.irishstatutebook.ie/eli/2019/act/45/section/6/enacted/en/html#sec6”;



Unfortunately the % will be rising in 2023 but will be at a level lower than non-EV so there still is a net gain in adopting an EV. The existing percentage seems to be aimed to incentivise a general moving from traditional to EV. There is similarly a likely probability that non-EV BIK will rise as a counter weighted to further encourage this move.


---

Good to get that clarity for anybody planning to get a first or change company cars but disappointing that the brilliant benefit available now is going. I wonder will PHEV’s fall into the lowest emissions category too?

Edit just checked and it’s any car with emissions up to 59 g/ co2 that that will mean most PHEV’s will qualify. I’d expect to see a big movement from diesel to PHEV for company cars as a result