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mileage 2020 on company car

  • 12-10-2020 3:58pm
    #1
    gambit83
    Registered Users Posts: 177 ✭✭


    Hi,

    Does anyone know what the situation is regarding employees who drive a company car and the drop in mileage due to the travel restrictions this year with Covid. Will it be the case that no re-calculations will be and the employee will have to take a hit and go into a higher rate of % of OMV?

    Thanks


Comments

  • #2
    colm_mcm
    Registered Users Posts: 73,379 ✭✭✭✭colm_mcm


    https://www.revenue.ie/en/corporate/communications/covid19/compliance-with-certain-reporting-and-filing-obligations.aspx

    Employer-Provided Vehicles
    For the duration of the Covid-19 restrictions, where an employee is in receipt of a vehicle (car or van) provided by his or her employer, the following may apply:

    (a) Employer Takes Back Possession of the Vehicle

    Where an employer takes back possession of the vehicle and an employee has no access to the vehicle, no BIK shall apply for the period.

    (b) Employer Prohibits Use

    Where an employee retains possession of a vehicle, but the employer prohibits the use of the vehicle, no BIK shall apply if the vehicle is not used for private use. Records should be maintained to show that the employer has prohibited its use and no such use has occurred, for example communication from employer, photographic evidence of odometer etc.

    (c) Employer Allows Private Use

    Where an employee has a car provided by his or her employer and

    the circumstances in the previous example don’t apply
    limited or reduced business mileage (if any) is undertaken during the period of the COVID-19 crisis
    and
    personal use is limited
    the amount of business mileage travelled in January 2020 may be used as a base month for the purposes of calculating the amount of BIK due. Thus, the percentage applied in the calculation of the cash equivalent, which is based on annualised business mileage, may have regard to the actual business mileage for January 2020, for the period of the COVID-19 restrictions. Appropriate records should be kept, for example business mileage travelled in January, amount of private use, photographic evidence of odometer etc.


  • #3
    gambit83
    Registered Users Posts: 177 ✭✭gambit83


    Hi,

    Thanks for your reply.

    So the mileage put up in Janauary can be used for the months when not commuting for work due to travel restrictions?

    My employer is saying that this isn't the case. I've contacted Revenue and they basically said that BIK is dealt with by my employer and I may raise it with them and that my employer can then sumbit a enquiry to investigate or appeal.

    Anyone else in the same situation?

    Thanks


  • #4
    gambit83
    Registered Users Posts: 177 ✭✭gambit83


    Anyone.......


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