BIK on car

B

Baz

Guest
Is the BIK on a company car calculated on the original market value or the current market value?
 
Also - how do the revenue distinguish between business and personal mileage?


Thanks!
 
Also - how do the revenue distinguish between business and personal mileage?
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They don't - you do. They may choose to audit you if they get suspicious. Note that travel between home & work is not considered business mileage.
 
I have been asked by my employer for the mileage on my car as at Dec 31st. I havent been asked to distinguish between business & personal.....
 
What is to stop me 'bumping up' my mileage? I work for a large company with many company cars and there is zero chance of the company questioning the figure I give them.
 
Is yours a company car? The Revenue have been known in the past to inspect the mileage figures on company car dashboards in the course of paye/prsi audits.
 
What is to stop me 'bumping up' my mileage?
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Ethics? Morality?

Fear of being caught by your company and/or Revenue? Realisation that the next service invoice will have the mileage stated?
 
BIK is calculated on the original market value of the car. As a rule of thumb, Revenue will class a minimum of 5,000 miles as personal miles.

Tom Colton
Brophy Colton
Chartered Accountants
 
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