Bik

I have a company car on which I am paying full BIK of 30%. It is valued @ 23700 Euro for BIK purposes. The company will not change the car for me but I am considering buying it from them and asking them to continue to pay all associated costs eg petrol, tax etc. What is the most effective way to do this for tax purposes?

The most effective way is to get them to agree to pay Civil Service rates. Firstly they dont need Revenue approval. Two they are tax free in your hands. These can be paid for business mileage.

I would look at that aspect first .. it depends on the legitimate mileage you would be able to claim.

Thanks WD. Unfortunately I don't have much business mileage so would I have to pay a lesser percentage of BIK for a car allowance or is it fully taxed as income.