Benefit in Kind - Vans

• Select Van
   
• Enter Make, Model or Reg of van
   
• Enter Original Market Value (OMV) of the van - the Original market value of a van is the price (including any duty, VRT or VAT) which the van might reasonably have been expected to fetch, if sold in the State singly in a retail sale in the open market, immediately before the date of its first registration in the State or elsewhere.

• Enter From Date - this is the date the employee first started using the van in the current tax year

Please note: it is NOT necessary to enter business mileage in relation to a van as the employee will pay a set rate of 8% of the OMV of the van regardless of business mileage.
 

• Enter Cumulative Contribution - this is any amount made good by the employee directly to the employer towards to the cost of providing and running the vehicle.
   

When you have completed the above click 'Update file and show calculation of notional pay'.

The 'notional pay' will be added to the employee's gross income each pay period to ensure that the correct PAYE, Universal Social Charge and PRSI is charged.

Benefit in Kind - Cars

To access this utility go to Employees > Update employee benefits > Cars/Vans 

• Select Car
   
• Enter Make or Model of car
   
• Enter Original Market Value of car - the Original market value of a car is the price (including any duty, VRT or VAT) which the van might reasonably have been expected to fetch, if sold in the State singly in a retail sale in the open market, immediately before the date of its first registration in the State or elsewhere.

• Enter From Date - this is the date the employee first started using the car in the current tax year.

• Enter in the Carbon Class

• Enter Cumulative Business Km's to date

Business km's to date and will determine the amount of notional pay an employee will pay so it is important to read the following screen carefully to ensure that you are calculating business kms correctly.

Calculating Cumulative Business Km's to date:

To ascertain cumulative business kilometres to date:

annual business km's / by 52 or by number of weeks car is used by the employee.

• e.g. Annual Business Km's :          26,000km's/52 weeks = 500 km's per week

                                                                           500 km's x 10 weeks = 5000 km's

• Annual business mileage is defined as total business mileage less a minimum of 8,000 private km's. 

• In line with Revenue Regulation employees should submit periodical mileage records to the Employer when an employee is provided with a company car.
   
• Cumulative kilometres to date should be adjusted accordingly within the payroll to record an accurate value to the benefit given to the employee.

The following table of kilometres has been effective from 01st January 2024:

• Enter Increment of business km's - this is the annual business km's estimate divided by 52 (weekly paid employees) or by 12 (monthly paid employees). The payroll software will automatically increment the business km's each pay period, so there is no need to input km's manually.

• Enter Cumulative Contribution - this is any amount made good by the employee directly to the employer towards the cost of providing and running the vehicle.

• Tick if 70% away if applicable - tick this box if an employee works an average of not less than 20 hrs per week, travels at least 8,000 business km's per year and spends at least 70% of his or her working time away from the employers premises and retains a log book detailing business mileage.
  
   

When you have completed the above click 'Update file and show calculation of notional pay'.

Subsequent Car or Van

• Enter end date of original car or van - this is the date that the employee returned the car or van to the company or received a new company car or van. 

• Select 'Click for further vehicle entries'
   
• Enter Make or Model of new vehicle
   
• Enter Original Market Value of new vehicle - the original market value of a car or van is the price (including any duty, VRT or VAT) which the van might reasonably have been expected to fetch, if sold in the State singly in a retail sale in the open market, immediately before the date of its first registration in the State or elsewhere.

• Enter From Date of new vehicle - this is the date the employee first started using the car or van in the current tax year.

• Enter Cumulative Business Kms to date (NOT NECESSARY FOR VANS)  - business kms to date will determine the amount of Notional Pay and employee will pay so it is important to ensure that you are calculating business kms correctly.

• Enter Increment of business kms (NOT NECESSARY FOR VANS) - this is the annual business kms estimate divided by 52 (wkly paid employees) or by 12 (monthly paid employees). The payroll software will automatically increment the business kms each pay period, so there is no need to input kms manually.
   
• Enter in the Carbon Class

• Enter Cumulative Contribution - this is any amount made good by the employee directly to the employer towards to the cost of providing and running the vehicle.

• Tick if 70% away if applicable (NOT NECESSARY FOR VANS) - tick this box if an employee works an average of not less than 20 hrs per week, travels at least 8,000 business miles per year and spends at least 70% of his or her working time away from the employers premises and retains a log book detailing business mileage.
   

When you have completed the above click 'Update file and show calculation of notional pay'.

Electric Cars and Vans
 

Where an employer provides an employee or director with an electric car or van between 1st January 2019 and 31st December 2022, no taxable benefit will arise for the employee or director up to a cap of €50,000 on the original market value (OMV) of the car or van that is exempt from BIK. Any amount of the OMV over €50,000 is taxable in the normal manner. 

In addition, the BIK exemption for battery electric vehicles will be extended out to 2025 with a tapering effect on the vehicle value. This measure took effect in early 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €20,000 in 2026 and €10,000 in 2027. Note: in tax year 2028, €0 reduction will apply (EV-specific relief completely expires).

This exemption is limited to cars or vans which derive their motive power solely from electricity (no exemption is available in respect of hybrid cars or vans).

Charging Points for Electric Vehicles

The provision of charging points on site by an employer for the electric charging of vehicles will not give rise to a taxable benefit for the employee or director from 1 January 2018.

From 1 January 2025, a further exemption applies in relation to electric charging points. Subject to certain conditions, no BIK charge will apply where you incur expense providing an electric vehicle charging point at your employees or directors main private residence. To avail of this exemption:

• you must retain ownership of the electric charging facility
• the employee or director must have the private use of your electric vehicle

and

• the charging point must be installed at a private residence situated in the State. The residence must be the employee's or director's sole, or main, residence for the year of assessment.

The exemption does not apply where your employee or director has the private use of a hybrid electric vehicle.