| Benefit
in Kind |
| Private Use of a 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 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 (kilometres) |
% 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% |
| |
|
| 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. |
| |
Preferential
Loans |
Specified rate for home
loans from 1 January 2009 |
5% |
Specified rate for other loans from
1 January 2009 |
12.5% |
| |
Note: With effect from 1 January 2004 PAYE,
PRSI and Health Contributions 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. |
