Company car BIK

[Wifey]

Hi
My husband works for a large company with reps all over the country.

As I understand it BIK on company vehicles is worked out depending on the value of the car driven and the annual milage clocked up.
My husband covers a large area in the North West and had his car down graded this year as a cost saving technique by his employer from a sporty Laguna to a Focus estate.
The amount he is paying in BIK has actually risen since last year. His company seem to have come to some arrangement with the Revenue where everyone pays the same percentage of BIK so he is losing out in a big way to his colleagues who work in the city and drive a quarter of the annual milage he does.

He raised the question with his employers and got the impression that he was stirring up s**te and to leave well enough alone. He does not want to rock the boat but 350 per month is a big chunk to be paying in BIK.

My question is, can he raise this directly with Revenue or does it have to be through his employer. Also does his employer have the right to charge everyone the same figure when obviously it favours some employees and not others?
Thanks

 

[asdfg]

can he raise this directly with Revenue or does it have to be through his employer

Of course he can raise the issue directly with Revenue. The company may not be applying the rules correctly. Remember Revenue does not give advice but can be helpful. See [broken link removed] for calc BIK on company cars

If your husband does not want to rock the boat he could wait till year end and forward details to revenue who will reassess his tax situation and give a refund if necessary. Doesn't help cash flow during the year but could be a way of saving.

If still in doubt post more details and someone may be able to help on the BIK issue
Cost of car
Business Milage
Time out of office

 

[aidan119]

350 per mth would roughly be what you pay on a 32k car with no allowance for business mileage and assuming he is on higher rate of tax.
If he does more than 15000 business miles a year then it is reduced.
Business miles do not include travelling to his place of work.

 

[KBR]

I'm pretty sure I had to inform revenue myself of my mileage. At some stage you should be putting in medical & other expenses to revenue. Ideal time to update them on your car value/mileage & your employer just needs to hear that you were asked this by revenue at time of claiming back other expenses