BIK - Company car

T

turtle77

Registered User
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Hi,
Hope I’m asking this in the right forum!

I’m asking this on behalf of a friend with no net access; but I’ll speak as if it was me.

If I was to begin a new job and to get a company car; of what benefit would it be to me taking BIK into consideration?
The car is worth 20grand; I will be doing 20,000 miles per annum.

How much will it cost me to keep the car?

Is having a company car no longer a benefit? Is it a financial liability?
 
The BIK will be based on the OPEN MARKET VALUE of the car when it was orginally acquired. Is this 20,000 or is 20,000 the value now
 
Hi Arch,
it will be 20,000 euro when it will be purchased in 3 weeks; i.e. also when he starts.
 
Hi Turtle - the way I always understood it -- the benefit was calculated on the original market value of the car i.e. how much it was when it was new! See revenue ---
27. In the case of second hand cars can an employer use the cost rather than the original market value for the purposes of calculating the taxable benefit?
No. The taxable benefit must be computed by reference to the original market value of the car.

So to work it out you'll need to find out what the original market value of the car is.....
 
Hi Bofin,
it will be 20,000 euro... I just need to calculate what it will be worth to him; i.e what will it cost him; how much he'll save on other motoring expenses
 
The bik is €4800 - basicially its 24% (based on the 20,000 business mileage) of the €20,000. This is assessed in terms of tax as if your friends boss gave me an extra €4800 in salary (i.e. goes directly onto income)!!
 
Oh just remembered your friend also has to pay prsi on the benefit as well so you'll need to add that in as well!!! Also the bik is only for the time you have the car so if you only have it for nov and december then its only €800 for this year..and €4800 for the whole year!!!

Check out this site it tells you exactly how much it will cost you in euros out of your pay package!!!
[broken link removed]
 
I'm guessing you mean pricey!!!!

Remember though that is not the actual tax bill - the €4,800 is not yet taxed at 20% or 42% so its not as high as that in terms of tax to be paid!!!
 
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