New Job - BIK on car

F

fortunet

Guest
Hi,
I'm due to start a new job after christmas and will be getting a company car because it involves some travel (<24000km pa). I'm trying to get an idea of the BIK I will be paying but I'm getting different amounts depending on which online calculator I use.
My partner and I earn €100k per annum combined, and going by the revenue website the BIK will be approx €10,000 per annum.

I put the figures into taxcalc.eu and its telling me we will be coming home with an extra €400 a month, surely this is a mistake?

Am I right in saying the BIK is added to the gross income for tax purposes so this is the same as if we were earning €110k combined?

Thanks
 
Take Home pay is including the car on the calculation

You wil lreceive a pay check of 5422 + car Vs 5855 and No car previously

just plugged in the figures there : Net Tax on 100K is 29734 = Net of 70266 (5855 / mth)

Net Tax on 110K is 34934 = Net= 65066 (100000 - 34934) and a car = 5422 / mth
 
Trying to look at it from a different perspective...

If I buy a car for 30k, and intend to use it in such a way where business and personal will be 50/50, how much money will it cost to my company per year to have the BIK subsidized?

And what would be the formula here, to see the difference, if the car is worth 20k, 10k?
 
If you buy a car, as in you personally, then there's no BIK; that would only apply if the company owned the car...

If you mean the company will buy the car, and you will have use of it, then the BIK will be largely dependent on the level of mileage. The BIK if you do 5k personal and 5k business mileage, would be very different from the BIK if you did 20k personal and 20k business mileage...

So, maybe give a bit more info and you'll get a better answer!
 
I meant the company buys a car for me to use 50/50 for business and personal.

I will likely be doing mileage of 6k for business and 6k for personal. What kind of damage will it do to my company's finances to compensate for the BIK in this case? Also interesting how the initial cost of the car would affect this...

P.S. If it makes any difference, I'm an IT contractor who works half the time from office/apartment, half time at the customer site, hence the small mileage projection.
 
assuming you are at the higher rate cost to the company would be (very rough)
1. car = 10K -- Notional value 3k
2. your tax on this --approx 41%& & 6% for USC & PRSI = 1.4k
to compinsate you for this they would need to give you 2.7k
3 Employees PRSI on 3k & 2.7K = 0.6K approx

so car 10k + 3.3K annually & they pay for upkeep also

this is very rough and ready and i'm open to correction
 
And if the company buys a second-hand car for 10k that had original cost of 50k, does this mean that the business losses are gonna go out of proportion as if buying car for 50k, with roughly 16k a year to compensate for the BIK?
 
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