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Benefit-In-Kind tax rules overturned for company cars

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By John Healy of Healy Insurances

Minister for Finance Michael McGrath has announced a temporary change for company-owned vehicles following a backlash from drivers whose Benefit-In-Kind (BIK) taxes increased substantially in January.

While the move to a CO2 based Benefit-In-Kind system, which incentivises the use of Electric Vehicles and lower emission cars, a significant number of employees with vehicles in the typical emissions range experienced large increases in their income tax liabilities since the start of 2023.

To address the issue, the Finance Minister has introduced a relief of €10,000 to be applied to the Original Market Value (OMV) of cars in Category A-D in order to reduce the amount of Benefit-In-Kind payable (this is not applicable to cars in Category E).

In effect, this means that, for the purposes of calculating BIK liability, employers may reduce the OMV by €10,000. This treatment will also apply to all vans and electric vehicles. For electric vehicles, the OMV deduction of €10,000 will be in addition to the existing relief of €35,000 that is currently available for EVs, meaning that the total relief for 2023 will be €45,000.

The upper limit in the highest mileage band is amended by way of a 4,000km reduction, so that the highest mileage band is now entered into at 48,001km.

These temporary measures will be retrospectively applied from 1 January 2023 and will remain in place until 31 December 2023. It is proposed to introduce the measures at Committee Stage of the Finance Bill 2023.

From an insurance perspective, if a vehicle is owned by a company then the motor policy in place must be in the company name and have full business use cover known as Class 2 cover. It is customary that the policy is on an open driving basis, usually aged 25 to 70. The cost for a company owned car policy can be higher than privately owned vehicles.

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Concerns grow over rough sleeping beside Cathedral

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Concerns grow over rough sleeping beside Cathedral

A makeshift encampment beside St Mary’s Cathedral has renewed debate over rough sleeping in Killarney, raising questions about support for vulnerable people and the management of public spaces.

A photograph shared on a local Facebook page this week shows a tent, bedding and belongings beneath a tree near the cathedral, Bishop’s Palace and a car park used by worshippers and visitors. The location is also close to secondary schools. Comments beneath the photograph reflect concern about the encampment’s appearance and whether the response has been appropriate. The circumstances of the person staying there, including whether they have been offered accommodation or support, have not been established. Killarney councillors have raised rough sleeping repeatedly. In February 2021, the late Cllr Donal Grady told the Killarney Advertiser that some people sleeping rough had declined offers of accommodation in Killarney and Tralee. At the time, a Kerry County Council official told a Joint Policing Committee meeting: “If a person refuses accommodation then there’s nothing we can do about it. ”Those comments concerned earlier cases. They provide no evidence about the person currently pictured beside the cathedral. In January 2025, Cllr John O’Donoghue called for continued engagement with people sleeping rough, even when they were reluctant to accept help. Kerry County Council said homelessness involves complex circumstances that require cooperation between agencies.The cathedral adds a powerful historical dimension. Construction stopped during the Great Famine, when the unfinished building served as a hospital and shelter for the sick and dying. Children who died during the Famine were buried in its grounds.

A DIFFICULT SITUATION

A makeshift shelter beside this landmark raises a difficult question for a town known internationally for tourism and hospitality. Killarney also remembers the death in 2018 of a man believed to have been sleeping rough. The priority must be the individual’s welfare and dignity, alongside appropriate care for a busy public area. Has outreach taken place? Has suitable accommodation been offered? Who is responsible for managing the site, and what steps are being taken towards a lasting solution?

Have your say: info@killarneyadvertiser.ie

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Kilcummin parish celebrates milestone wedding anniversaries

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Couples across the parish of Kilcummin gathered at Our Lady of Lourdes Church for a special celebration Mass honouring milestone wedding anniversaries.

The special service, celebrated by Fr Pat O’Donnell, brought together local couples celebrating 25, 30, 35, 40, 45, 50, 55, and 60 years of marriage. Each couple received a commemorative certificate in recognition of their decades of commitment and companionship.

Following the ceremony, the parish committee hosted a reception in the parish hall, where attendees enjoyed tea, home baking, and an opportunity to catch up with neighbours and family members.

Organisers extended their gratitude to Fr O’Donnell, the church committee, photographer Anne Holland, and all who helped arrange the celebratory event.

ANNIVERSARY MASS: Pictured at the Kilcummin wedding anniversary mass are (front row, left to right) Michael and Mary Dorrigan, Michael and Mary Moynihan, Marion and Timmy O’Keeffe, and Clare and Sean Moynihan; (second row) Robert and Ann Marie Keane, Paudie and Kate Cahill, Hann and Denny Donnelly, Sheila and Charlie O’Neill, and Maureen and Francis O’Doherty; (third row) Maura and Cornelius Brosnan, Joan and Jeremiah Desmond, Breda and Timmy O’Leary, Noreen and Patie Nagle, and Barry and Breda Duggan; with (back row) Willie and Breda Fleming, Mary and Noel Cronin, and Fr Pat O’Donnell. Photo: Anne Holland.

PEARL ANNIVERSARY: Clare and Sean Moynihan celebrating their 30th wedding anniversary at Our Lady of Lourdes Church in Kilcummin. Photo: Anne Holland.

GOLDEN JUBILEE: Marion and Timmy O’Keeffe marking 50 years of marriage during the parish anniversary celebrations in Kilcummin. Photo: Anne Holland.

RUBY CELEBRATION: Timmy and Breda O’Leary celebrating 40 years of marriage in Kilcummin. Photo: Anne Holland.

SAPPHIRE MILESTONE: Joan and Jeremiah Desmond celebrating 45 years of marriage at the anniversary Mass in Kilcummin. Photo: Anne Holland.

CORAL ANNIVERSARY: Robert and Anne Marie Keane marking 35 years of marriage at Our Lady of Lourdes Church, Kilcummin. Photo: Anne Holland.

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