Help your business and your employees by switching to Electric Driving!
A benefit in kind (BIK) is a non-cash benefit that employers provides to employees (such as notional pay, or perks), that have a monetary value and must be seen as taxable income. Employers must deduct PAYE, PRSI and USC from their employees pay on the value of the benefit, and when companys provide a company car to an employee, this can lead to a significant increase on BIK tax payment.
Here's the Good News:
From January 1 2021, no taxable benefit is applicable if the company provides the employee an Electric Vehicle as a company car. This is a win win, as you can offer an Electric Vehicle as an employee benefit, without concurring the tax that you would see if you had provided a standard model.
Points to Note:
This is applicable in Ireland to Electric Vehicles to the value of €50,000. 0% BIK is not available on Hybrid or Plug-In Hybrid EV's.