Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

BIK as a Payment?

Options
  • 04-08-2020 8:53pm
    #1
    [Deleted User]
    Posts: 7,712 ✭✭✭


    I have a BIK payment (I’ve a company vehicle) that shows up in my payslip as a payment with my salary on my payslip. Is BIK not meant to be a deduction?


Comments

  • Options
    #2
    Bubbaclaus
    Registered Users Posts: 4,461 ✭✭✭Bubbaclaus


    The tax on the benefit is a deduction.


  • Options
    #3
    [Deleted User]
    Posts: 7,712 ✭✭✭ [Deleted User]


    Bubbaclaus wrote: »
    The tax on the benefit is a deduction.

    Thanks. But is the vehicle not the benefit? Why is there a payment at all? I can’t understand why I get X amount a month along with my salary when I get the vehicle.


  • Options
    #4
    murrak123
    Registered Users Posts: 74 ✭✭murrak123


    ReginaldSmythV wrote: »
    I have a BIK payment (I’ve a company vehicle) that shows up in my payslip as a payment with my salary on my payslip. Is BIK not meant to be a deduction?

    Bik is considered a benefit ... So revenue will dictate how much of a benefit it is depending on model of vechicle. This is added to your gross income and you are taxed on it ....


  • Options
    #5
    [Deleted User]
    Posts: 7,712 ✭✭✭ [Deleted User]


    murrak123 wrote: »
    Bik is considered a benefit ... So revenue will dictate how much of a benefit it is depending on model of vechicle. This is added to your gross income and you are taxed on it ....

    So I’m being paid extra for having a free vehicle? That’s the bit I can’t get my head around.


  • Options
    #6
    Allinall
    Registered Users Posts: 6,533 ✭✭✭Allinall


    ReginaldSmythV wrote: »
    But is the vehicle not the benefit? Why is there a payment at all? I can’t understand why I get X amount a month along with my salary when I get the vehicle.

    It’s added to gross pay as a notional payment so tax can be deducted.

    It doesn’t get included in the calculation for net pay. Only the deductions do.


  • Advertisement
  • Options
    #7
    Bubbaclaus
    Registered Users Posts: 4,461 ✭✭✭Bubbaclaus


    ReginaldSmythV wrote: »
    So I’m being paid extra for having a free vehicle? That’s the bit I can’t get my head around.

    If you are being paid extra then that's an atrocious payroll feck up. Having it in the payments section of the payslip is correct, thats where taxable benefits go and doesn't mean it's a cash payment. Are you sure you have received a cash payment?


  • Options
    #8
    [Deleted User]
    Posts: 7,712 ✭✭✭ [Deleted User]


    Allinall wrote: »
    It’s added to gross pay as a notional payment so tax can be deducted.

    It doesn’t get included in the calculation for net pay. Only the deductions do.

    Ah right. Thanks.

    So the net is the gross only (not plus the BIK) - all the deductions (including the tax on the BIK)?


  • Options
    #9
    [Deleted User]
    Posts: 7,712 ✭✭✭ [Deleted User]


    Bubbaclaus wrote: »
    If you are being paid extra then that's an atrocious payroll feck up. Having it in the payments section of the payslip is correct, thats where taxable benefits go and doesn't mean it's a cash payment. Are you sure you have received a cash payment?

    No I will have to check that now. I had seen it in the payments and panicked that I was going to owe revenue a solid fortune.


  • Options
    #10
    [Deleted User]
    Posts: 7,712 ✭✭✭ [Deleted User]


    Yeah my net works out as the gross (without BIK payment) - deductions. It just shows it in a really funny way on the payslip.

    Payable Pay - shows the gross wage PLUS the BIK payment
    Less Tax Deduction - PAYE+PRSI+USC

    Payment - Payable pay - Less Tax Deduction - BIK payment (even though it doesn’t reference the latter at all).


  • Options
    #11
    Allinall
    Registered Users Posts: 6,533 ✭✭✭Allinall


    ReginaldSmythV wrote: »
    Ah right. Thanks.

    So the net is the gross only (not plus the BIK) - all the deductions (including the tax on the BIK)?

    Spot on.


  • Advertisement
  • Options
    #12
    [Deleted User]
    Posts: 7,712 ✭✭✭ [Deleted User]


    Thanks for that. Panic averted!


Advertisement