Benefit In Kind

Private Use of a Company Car
New Cars
For 2009 and subsequent periods emission allowances will be the basis for assessing benefit in kind on company car.The notional pay to which PAYE and PRSI must be applied is determined by reference to the “cash equivalent” of the private use of a company car. To arrive at the cash equivalent the employer must first apply a emission allowances related percentage to the Original Market Value (OMV) of the vehicle supplied.The cash equivalent is then reduced by any amount required to be made good, and actually made good, by the employee directly to the employer in respect of any part of the cost of providing or running the car. The percentage which is now applied to the open market value of the company car will be determined based on emission allowances as follows:

Vehicle Emission category CO2 Emissions (CO2 g/KM) OMV %
A 0G/Km-120g/Km 30%
B >120G/Km-140g/Km 30%
C >140G/Km-155g/Km 30%
D >155G/Km-170g/Km 35%
E >170G/Km-190g/Km 35%
F >190G/Km-225g/Km 40%
G >225G/Km 40%

Tapering relief is available for high levels of business travel

Lower km Upper Km A,B,C OMV % D,E OMV% F,G OMV%
0 24,000 30 35 40
24,001 32,000 24 28 32
32,001 40,000 18 21 24
40,001 48,000 12 14 16
48,001 + 6 7 8

For 2008 and older Cars
The notional pay to which PAYE and PRSI must be applied is determined by reference to the “cash equivalent” of the private use of a company car. To arrive at the cash equivalent the employer must first apply a business kilometric related percentage to the Original Market Value (OMV) of the vehicle supplied (whether the vehicle is owned acquired new or second-hand or leased by the employer).The cash equivalent is then reduced by any amount required to be made good, and actually made good, by the employee directly to the employer in respect of any part of the cost of providing or running the car
The percentage which is now applied to the open market value of the company car will be determined based only on business mileage as follows:

Business Mileage % of OMV
24,135 or less 30%
24,136 – 32,180 24%
32,181 – 40,225 18%
40,226 – 48,270 12%
Over 48,271 6%

Tapering relief is available for high levels of business travel Vans
The notional pay to which PAYE and PRSI must be applied is determined by reference to the ‘cash equivalent’ of the private use of the van. The cash equivalent is 5% of the Original Market Value (OMV) of the vehicle supplied. The OMV must be calculated in the same manner as for cars.

Concession: There will not be a charge to tax in respect of a company van where all of the four conditions below are met:- The van provided is essential for the purposes of the job- The employer requires that the employee brings the van home- Any private use (other than travelling to and from work is prohibited), and- Most of the working day (80%) is spent away from the employer’s premises.

Note:  PAYE, PRSI & USC will be deducted from salary by the employer, in respect of the taxable value of most benefits. An employer can provide an employee with a small benefit to a value not exceeding €250 without applying PAYE and PRSI to that benefit.

Preferential Loans
Specified rate for home loans from 1 January 2013 4%
Specified rate for other loans from 1 January 2013 13.5%

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