Benefit in Kind - vans

L1011

Revenue's leaflets are... rather confusing I have to say

I'm getting a car-van in work as 'my own' (as opposed to a pool one) and will have private use of it at the weekends. I don't have kids, won't be having any :P, and otherwise don't need to move around more than 2 people so I'm thinking of chucking my existing car

However, I can't figure out the BIK problems associated with this. I know theres a 5% of OMV BIK on having use of it at all, but Revenue's leaflets are very confusing as goes personal vs. business mileage . I do huge personal mileage so being loaded for that wouldn't be a wonderful situation....

Anyone have any ideas - or should I go over to whatever we have in the ways of a taxation forum?

walshy123

this came up in work lately and i had a brief chat to one of the lads in our tax department. strictly speaking there is a BIK liability, but in practice it is ignored. revenue do not seek to recover BIK on vans. i guess on the basis that most van drives would simply say i dont want it if im paying bik on it!

-Chris-

Even if you pay BIK on the van, it works out to be 50 quid a month or something. report the benefit, pay the tax. It's hardly punative.
If you're getting private use and you get found out, it's your company that gets fined, not you, so I'd find it unlikely that any company will turn a blind eye to it.

Martron

i had 3 vans from 2 seperate companies never paid bik

listermint

had one for 3 years, never paid any bik on it. private use also.

R.O.R

If you are expected to head straight from home to a call out in the van then you shouldn't have to pay BIK.

If you've chosen to take a van instead of a car to minimise your BIK (as I did a couple of years ago) then you will probably be declared for BIK by your company.

If it's neither of the above, it's a grey area. Some companies do declare anyone with a van for BIK, other don't. When the most recent changes in BIK came in to effect I sat through a 2 hour long seminar on the ins and out and I couldn't tell you for certain what the ruling is on vans. I can tell you that business / personal mileage won't make any difference at all to what you pay - my van was purely for personal use at approx. 35,000km a year.

If you post what type of van you are getting I'll give you the workings for what you should end up paying in BIK.

L1011

Ford Focus TDCI Style

Wasn't intending to avoid the BIK on the value, just a bit concerned there was BIK on personal mileage too.

R.O.R

MYOB wrote: »

Ford Focus TDCI Style

Price I have for the 1.6 90ps model was €19,690. If it's the new 1.8Tdci version it may be a bit more, but the workings will be the same.

€19,690 less 10% discount for Fleet Sale (max discount allowable for BIK purposes) = €17,721

5% BIK for Vans - €17,721 x 0.05 = €886.05. This is your annual BIK liability.

Monthly BIK Liability - €886.05 / 12 = €73.84. This is what should appear on your payslip.

You have to pay tax and PRSI on €73.84 so the actual cost to you depends on your individual tax circumstances, as a rough guide I use 44% (some tax at lower rate, some at higher rate and 6% PRSI) so approx cost to you €32.50 a month.

If you pay anything towards the cost of running the vehicle that amount would come off the €17,721 figure. Some companies use fuel cards to track employees fuel spend and deduct that off vehicle value.

Henry Ford III

R.O.R wrote: »

Price I have for the 1.6 90ps model was €19,690. If it's the new 1.8Tdci version it may be a bit more, but the workings will be the same.

€19,690 less 10% discount for Fleet Sale (max discount allowable for BIK purposes) = €17,721

5% BIK for Vans - €17,721 x 0.05 = €886.05. This is your annual BIK liability.

Monthly BIK Liability - €886.05 / 12 = €73.84. This is what should appear on your payslip.

You have to pay tax and PRSI on €73.84 so the actual cost to you depends on your individual tax circumstances, as a rough guide I use 44% (some tax at lower rate, some at higher rate and 6% PRSI) so approx cost to you €32.50 a month.

If you pay anything towards the cost of running the vehicle that amount would come off the €17,721 figure. Some companies use fuel cards to track employees fuel spend and deduct that off vehicle value.

Any employee contribution should come off the assessable benefit figure of €886.05 in your example above.

R.O.R

Henry Ford III wrote: »

Any employee contribution should come off the assessable benefit figure of €886.05 in your example above.

Sorry

Your completely right Henry, still a bit early in the morning for me

OldmanMondeo

I had a Citroen Xsara car-van a few years ago. Used for sales and personal usage. BIK a month worked out around €15 per month. Hope this helps.

preilly79

AudiChris wrote: »

If you're getting private use and you get found out, it's your company that gets fined, not you ...

my company told me the opposite. wierd.

-Chris-

preilly79 wrote: »

my company told me the opposite. wierd.

I'm pretty sure that in '02 the responsibility for reporting BIKable benefits moved from the employee to the employer.

Not definite, but pretty sure.

R.O.R

AudiChris wrote: »

I'm pretty sure that in '02 the responsibility for reporting BIKable benefits moved from the employee to the employer.

Not definite, but pretty sure.

That's my take on it too.

return guide

AudiChris wrote: »

I'm pretty sure that in '02 the responsibility for reporting BIKable benefits moved from the employee to the employer.

Not definite, but pretty sure.

Thats correct, before the change we never paid BIK on vans, but as soon as the onus moved to the employer it was taken from or wage

S.I.R

MYOB wrote: »

Revenue's leaflets are... rather confusing I have to say

I'm getting a car-van in work as 'my own' (as opposed to a pool one) and will have private use of it at the weekends. I don't have kids, won't be having any :P, and otherwise don't need to move around more than 2 people so I'm thinking of chucking my existing car

However, I can't figure out the BIK problems associated with this. I know theres a 5% of OMV BIK on having use of it at all, but Revenue's leaflets are very confusing as goes personal vs. business mileage . I do huge personal mileage so being loaded for that wouldn't be a wonderful situation....

Anyone have any ideas - or should I go over to whatever we have in the ways of a taxation forum?

all i can say is: if getting a commercail, car/vans are the way to go.... too light for the doe and there a van so they cant do the nct.... cuts running costs down signiffigantly.