Changes to BIK from 2023
Join the Electric Revolution at Frank Keane
Budget 2022 announced significant changes to the benefit in kind that employees will be liable for in terms of electric vehicles. The main changes are outlined below.
For an electric vehicle made available for an employee’s private use during the years 2023 – 2025, the cash equivalent will be calculated based on the actual original market value (OMV) of the vehicle reduced by:
- €35,000 in respect of vehicles made available in the 2023 year of assessment;
- €20,000 in respect of vehicles made available in the 2024 year of assessment; and
- €10,000 in respect of vehicles made available in the 2025 year of assessment.
If the reduction reduces the OMV to Nil, a BIK charge will not arise. Any portion of OMV remaining, after the reduction is applied, is chargeable to benefit-in-kind at the prescribed rates which are detailed below.
| The amount of business mileage | CO2 emission category | Rate for calculation of BIK | ||||||
|---|---|---|---|---|---|---|
| Lower Limit | Upper Limit | A | B | C | D | E |
| KMs* | KMs* | % | % | % | % | % |
| – | 26,000 | 22.5 | 26.25 | 30 | 33.75 | 37.5 |
| 26,001 | 39,000 | 18 | 21 | 24 | 27 | 30 |
| 39,001 | 52,000 | 13.5 | 15.75 | 18 | 20.25 | 22.5 |
| 52,001 | — | 9 | 10.5 | 12 | ||
| The CO2 emissions category of the car is as per the following table | |
|---|---|
| Vehicle Category | CO2 Emissions (CO2 g/km) |
| A | 0g/km up to and including 59g/km |
| B | More than 59g/km up to and including 99g/km |
| C | More than 99g/km up to and including 139g/km |
| D | More than 139g/km up to and including 179g/km |
| E | More than 179g/km |
Buying an electric vehicle through your business will result in the lowest level of benefit-in-kind liability.
With our “try before you buy” offer and flexible finance options available including Contract Hire we can tailor a package that suits your practice perfectly. Take a look at the latest corporate offers across our electric range here. To receive a call back fill in the Contact Form or contact us directly via 012405666.