Car allowance

G

gmt

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The seach function doesn't seem to like me at the moment so please forgive me if this has been asked before.

How is a car allowance taxed (if at all)? Anybody got some information/links?

Thanks!
 
Yes, according to the Revenue site on Benefit in Kind in respect of cars it states that Car Allowances are liable to both PAYE & PRSI.
 
Thanks for your reply. Just to get an idea, what would be considered a good car allowance?
 
Any car allowance is a cash payment and, yes, is taxable as an income payment.

What is a good car allowance?........... there are no real guidelines for this.......just use your logic - what would it cost you to lease the same car? That would be a good guideline I think.
 
Although called a car allowance it's effectively salary and is treated as such for tax purposes
 
Would I be correct in saying that if the employee submits a mileage claim to the company for mileage done on the company's behalf, that the car allowance could be covered by this, rather than as a taxable addition?
 
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