As we head into the new tax year, 2023, there are many changes that are coming in to effect as a result of Budget 2023. It is important that, you as an employer be aware of these changes from a Revenue perspective and an employee rights perspective as a number of them will affect all employers in some way. Please familiarise yourself with the changes and contact us if you require more information. Below is a brief summary of some of the changes.
BIK on Company Vehicles in 2023:
Currently based on OMV and annual business kms. From 1 st January 2023 also based on CO2 emissions
BIK increase from 5% to 8% of OMV
BIK Rates from January 2023 (Cars)
|Annual Business KMs||Vehicle Categories|
|CO2 Emissions - CO2 g per km||0-59||59-99||100-139||140-179||180+|
|% of OMV|
|Vehicle Type||OMV||Annual Business KM||Co2 Emissions||Vehicle Category|
|Audi A6 Tdi||€54,450||Minimal||142g per km||D|
|% BIK (based on band D in 2023)||30.00%||33.75%|
|Liabilites due (higher rate)||€8,494.20||€9,555.97||€1,061.77 = €20.42 per week|
Changes to the current BIK Exemption/Partial Relief for Electric Vehicles
Effective to 31 December 2022, a full exemption applies where the Original Market Value (‘OMV’) of an electric vehicle was €50,000 or less, with partial relief up to €50,000 if the OMV exceeded that amount.
Whilst BIK relief is extended to cover the period from 1 January 2023 to 31 December 2025, it is limited to partial relief on the OMV to be tapered away over time as follows:
We have noted an example below for ease of reference.
Example Electric Car
|Reduction in OMV||Nil||€35,000||€20,000||€10,000|
|OMV for BIK||€25,000||€40,000||€55,000||€65,000|
|Rate of BIK||30%||22.50%||22.50%||22.50%|
|Liabilities due(higher rate)||€3,900||€4,680||€6,435||€7,605|
|Net Pay – Year on Year decrease||-||-€780||-€1,755||-€1,170|
To discuss in confidence what the measures mean for you or your business, please contact our team outlined below, or your usual RBK contact.
Our offices are strategically located to service our market and are easily accessed from any location nationwide.
3 Arkle Road,
D18 C9C5, Ireland
RBK House, Irishtown
N37 XP52, Ireland
RBK House, Castle Street,
F42 NR79, Ireland