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Benefit in Kind

  • 18-08-2009 7:57pm
    #1
    Dusty770
    Registered Users Posts: 22 ✭


    Just looking to see what way i should go with this.
    I'm a project manager for our family run business and am looking to go more towards sales and now require to change my van to a car for appearance reasons. Obviously i dont pay BIK on a commercial , so am looking to see what's the best way to go when i change for a car. ie.
    a. Pay benefit in kind or
    b. Charge mileage to the company

    Any advice or knowledge of the costs of BIK would be greatly appreciated

    ps. the car would be to the value of €42k and i do 50km / just over 30k miles per annum


Comments

  • #2
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    If you can afford to buy it personally it will be better as:

    1) BIK is always based on the origianal market value of the car and
    2) Reduced and capped costs for capital allowances.
    3) Revenue rates can be used and are more generous for mileage purposes.

    Hope this helps

    Dbran


  • #3
    Dusty770
    Registered Users Posts: 22 ✭Dusty770


    Hi and thanks for the reply. Could you estimate how much this could end up costing me? The payments would be around €1,300 per month [i have to check the setlement figure on my current vehicle]. So i'm just trying to get my head around how much i can charge the company and how much it will cost me in real world figures!


  • #4
    funnygal
    Registered Users Posts: 5 ✭funnygal


    for personal BIK is calculated on the original market value by multiplying it by a percentage the percentage starts at 30% and gets lower the more miles run up on car and the lower percentage is 6% for 30k miles or more...
    your BIK would be restricted for part use in the year.
    personal use is also deducted when arriving your liability
    Also any donations made to the company for the use of car say 100 euro or so a month are deducted off your BIK liability
    from a business point of view
    A diesel car would be better because at least you can claim the vat back for diesel purchases and not for petrol
    also when calculating the capital allowances for the car the cost of the car is restricted and the higher the carbon emmisions of the car the then there is more of a restriction
    personally i would buy through the company.


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