Why does business mileage matter for company car BIK?

Under Irish company car BIK rules, the applicable BIK rate can vary by annual business mileage bands. Higher business mileage can reduce the rate in some scenarios, which can reduce the estimated taxable benefit value.

What records should I keep for business mileage?

Keep a consistent log of business travel with dates, distances, and business purpose. Evidence requirements can depend on employer policy and how Revenue guidance is applied in practice.

What if my mileage is close to a band boundary?

If your mileage is near a boundary, small differences in recorded mileage can change the band used in an estimate. It can be useful to model both sides of the boundary as scenarios.

Company Car BIK Mileage Bands (Ireland)

In many company car packages, business mileage is the input that people underestimate. If your mileage band changes, your BIK rate can change, which can move your estimated take-home impact.

Company car BIK tool Company Car BIK definition

1) How mileage affects the estimate

The BIK calculation uses a statutory method where the applicable percentage can vary by business mileage tier. This means two people with the same vehicle value and emissions category can see different outcomes if their business mileage differs.

If you are comparing job offers or choosing between a car and a cash allowance, treat mileage as a key scenario input rather than an afterthought.

2) What to record (simple checklist)

Date of travel
Start and end locations
Business purpose
Distance (km)

3) How to use the calculator with mileage

If your mileage is close to a boundary, model two scenarios: just below and just above the boundary. This shows whether the decision depends on staying in a particular tier.

Once you have stable year-to-date mileage, re-run the estimate and compare it with your payslip treatment if you already receive the benefit.

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