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Benefit-In-Kind tax rules overturned for company cars

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3 years ago

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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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The Scooby Doo Mystery Machine ready for St Patrick’s Day

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43 minutes ago

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15 March 2026

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The Killarney Valley Classic and Vintage Club is putting the finishing touches on its latest project, a full-scale recreation of the iconic “Mystery Machine” from the Scooby-Doo franchise.

The van is set to make its highly anticipated public debut at the Killarney St. Patrick’s Day parade this Tuesday.

The project involved a complete restoration of a Toyota LiteAce van, which was transformed into the world-famous cartoon vehicle.

The club received significant support from Kellihers Toyota, who assisted in sourcing the necessary parts to get the vintage Japanese van back on the road.

The Mystery Machine first appeared on television in 1969 in the animated series Scooby-Doo, Where Are You! and quickly became one of the most recognisable vehicles in pop culture. Known for its distinct psychedelic bright blue and green paintwork with orange flower decals, the original design was inspired by 1960s panel vans.

Members of the Killarney Valley Classic and Vintage Club have spent months ensuring the replica is as faithful to the Hanna-Barbera original as possible.

The club is well known for its creative restoration projects, and this latest build is expected to be a major highlight for children and families lining the parade route.

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Kelly praises Irish mother’s campaign to criminalise cyberbullying

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4 hours ago

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15 March 2026

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Seán Kelly MEP (Ireland South) has praised “the courage and determination shown by Jackie Fox”, a mother from Ireland who addressed MEPs in the European Parliament, Strasbourg on Tuesday, urging the EU to do more to prevent and criminalise cyberbullying.

Jackie Fox successfully campaigned for a law against online bullying in Ireland which was enacted in 2021 and is known as ‘Coco’s Law’ after Jackie’s young daughter, Nicole, who tragically died from suicide in 2018 after experiencing horrific bullying.

Tuesday, MEPs from 27 countries and different political groups listened intently to Jackie as she told Nicole’s story.

Jackie gave an incredible, emotional speech urging the EU to act to prevent more damage to young people and particularly warned of the dangers that AI can pose in this context”, MEP Kelly said.

“The EPP Group of which Fine Gael is a member of has long called for online bullying to be criminalised across the EU. It was an honour to have Jackie address the EPP Group meeting on Tuesday as well. Given that in Ireland, there have been over 240 prosecutions already under Coco’s Law, the courage and determination shown by Jackie Fox is saving and protecting the lives of other young people. She deserves full credit for her campaign and we in Fine Gael and the EPP Group will continue to support her at EU level”, Mr Kelly said.

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