Car allowance

[sundried]

Hi,

I am receiving a cash car allowance of €1000 euro per month. Which i know get taxed at 48% at this stage leaving me with 520 euro in my pocket.

I now want get a car for €25000 which I was informed works as below for the BIK
Original market value of car (OMV) €25000
Notional value for BIK purposes at 30% of OMV €7500
Income tax to be paid by the employee (42%) €3,150
Employee PRSI to be paid by the employee (2%)* €150
Total annual employee deduction €3,300 which means €275 per month.

Is it as simple to say that I will be short €520 of the cash benefit that I will not have anymore + €275 BIK meaning I will be €795 less well off than in my last paycheck?

Or am I missing something?

AA

 

[asdfg]

I stand to be corrected on this

What you say is correct but bear in mind that
Benefits
1. you have a car worth 25,000 (to provide this car over 5 years will cost you 500 per month, 600pm over 4 years, 775 pm over 3 years )
2. Petrol is paid for*
3. Insurance is paid for*
4. All repairs are paid for*

Drawbacks
1. You don't own the vehicle (the company does)
2. If you don't need a vehicle (on promotion perhaps) you will have to take out insurance in your own name and you may not qualify for a NCB

* if not the BIK % is reduced

I'm sure there are others