BIK Company Car

Can someone out there let me know what the BIK due per month would be in the following circumstances -

Car value €35k
Away from office 90% of time
Business mileage 17,000 pa

Thanks

Christy

AFAIA its 30,000 @ 24% @ rate of tax+PRSI at 6% or 2%
If you are on the lower rate of tax the BIK could push you into the higher rate or if you are paying the full rate of PRSI BIK or part of it could be reduced to 2%

Assuming you are on the high rate of tax and paying less than 46600 pa including BIK or where 46600 is not exceeded in a pay period (cumulative) i estimate the BIK to be 288 pm

For more details see [broken link removed]

Christy said:

Can someone out there let me know what the BIK due per month would be in the following circumstances -

Car value €35k
Away from office 90% of time
Business mileage 17,000 pa

Thanks

Christy

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There is a slight alternative you can take up with a few conditions to be met. Basically because you spend more tan 70% of your time away from the office your taxable value can alternatively be calculated at 35K * .3 * .8 which gives the same result as asdfg.

This would be more advantageous for example if your business mileage was 14,000 PA.

Sorry I calculated the car as 30K should have been 35K
So calc is 35K @ 24% @ 48% = 336 pm

This would be more advantageous for example if your business mileage was 14,000 PA.

Click to expand...

How?

asdfg said:

Sorry I calculated the car as 30K should have been 35K
So calc is 35K @ 24% @ 48% = 336 pm



How?

Click to expand...

With only 14,000 miles the 30% rate would apply. So 35K @ 30% = 11,500

Take other option of 35K @ 30% * 80% = 8,400

The second option is only 80% of 30% not 80% of the 24% of 18% etc.