How do I find the OMV used for company car BIK in Ireland?
BIK is calculated using an Original Market Value (OMV) figure as defined under Irish rules. In practice, the relevant OMV can depend on how the vehicle is classified and how the statutory method applies to your scenario. If you are unsure, use a reasonable OMV estimate and treat the result as planning only.
Does company car BIK affect PAYE, USC, and PRSI?
Often yes. A taxable benefit can increase the taxable pay base used for payroll deductions, which can increase PAYE, USC, and PRSI depending on your year-to-date position and payroll setup.
How do business mileage bands change the BIK rate?
Company car BIK rates can vary by annual business mileage bands. Moving into a higher business mileage band can reduce the BIK rate for some categories, but the outcome depends on your vehicle category and the statutory table for the relevant year.
What mileage records should I keep for BIK?
Keep consistent records that support your business mileage claim (dates, distance, and business purpose). Evidence expectations can vary by employer process and how Revenue guidance is applied in practice.
Is van BIK always 8% in Ireland?
Company vans are commonly treated with a flat BIK rate under Irish rules, but classification and payroll handling matter. If your vehicle is treated as a van for BIK purposes, the tax treatment can differ from a standard company car calculation.
Why does the estimate change between 2025, 2026, and 2027?
The calculator includes a year switch to reflect a 2025–2027 planning view where year-specific provisions can change the taxable base or rate. Use the year switch to compare scenarios rather than relying on a single rule of thumb.
Cash allowance vs company car: how do I compare fairly?
A cash allowance is typically taxed as pay. A company car creates a taxable benefit. Compare both scenarios using the same salary and then treat the difference in take-home as an estimate that depends on your payroll and circumstances.
If I contribute towards the car cost, can it reduce BIK?
In some payroll treatments, employee contributions can reduce the taxable benefit value. Confirm how your employer processes contributions and how it interacts with BIK reporting in your payslip.
How does a CO₂ category affect the BIK rate?
Your vehicle CO₂ category can influence the BIK rate applied in the statutory method. If you are comparing vehicles, treat CO₂ category as a scenario input and compare estimates rather than relying on general rules.
Is this an official or exact tax figure?
No. This is an estimate for planning. Payroll basis, credits, and personal circumstances can change the real outcome. Validate against your payslip if you already receive a company car benefit.
What is the difference between “taxable benefit value” and the real running cost of the car?
BIK is based on a statutory taxable value calculation, not your real fuel, insurance, or maintenance spend. Your tax cost and real-world running costs can move differently.