If you company provides you with a company car for personal use then you will have to pay tax on the value of the benefit in kind each year.

The benefit-in-kind on a car is 30% of the open market value of the car (i.e. the open market value is the retail price before registration in the State).

The benefit in kind can be reduced if you bear the cost of fuel, insurance, repairs/servicing and road tax.

This figure can also be reduced if your business mileage exceeds 15,000 per annum.

Van
A benefit in kind will also arise if your employer (i.e. your company) provides you with a van for private use. However, the value of the benefit in kind is calculated on a different basis. The value of is 12.5% of the cost (to the company) and the annual running expenses, the value, as calculated, is then reduced to take account of the fact that you use the van for business purposes.

OSK Contracting provide quality and professional business advice to indigenous Irish businesses. Our clients include government bodies; multi-national groups; PLCs; SMEs and sole traders but we specialise in progressive indigenous Irish family owned businesses.

Reprinted with kind permission by OSK Contracting www.osk.ie

Phone: 01 439 4200 East Point Plaza East Point Dublin 3

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