Purchasing an EV through my limited company in 2023

N

Nivarg

Registered User
Messages
19
I find the revenue page on BIK somewhat confusing.
I would like to buy an EV through my limited company.
The car would be for private and not business use.
Can I confirm the calculation below with someone who knows?

Purchase price of car (100% electric vehicle = OMV - €57,780.

€57,780 paid by company, pre-tax income.

Taxable benefit = OMV - €10,000 - €35,000 = €12,780.

BIK tax due = 22.5% of €12,780 = €2,875.50.

Am I misunderstanding this or is this correct?
 
You continue paying BIK each year and the allowance decreases each year, while the figure you pay on remains the original market value of the car. I'm on mobile so can't find it right not but have a look online.

You'll find you get stuck in a loop of buying a new car every 2-3 years to make it worthwhile (so you keep the higher BIK allowance)
 
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