How to Work on BIK on Company Vehicle

[virgo08]

Can anyone help me working out the following:-

Original Market Value of car €40k
Purchase Price of Car €16K
Annual Mileage up to 25km = 25%
Gross Pay at Present €778.84
Add Notional Pay €971.15

If my Standard Rate cut of is €873.08
Tax Credit is €120.97

What will be my take home pay, do i pay tax & PRSI on €971.15?

Any Help would be much appreciated.

 

[CCOVICH]

do i pay tax & PRSI on €971.15?

Yes.

Gross Pay €778.84
BIK €192.31
Taxable income €971.15

Tax payable
€873.08 @ 20% €171.62
Balance @ 41% €40.21
Total €211.83
Tax credit €120.97
Net tax €90.86

Income Levy €9.71
Health Levy €19.42

PRSI-that's another story....

Looking at the credits and bands, I am presuming you are married with one income?