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Benefit-In-Kind tax rules overturned for company cars

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2 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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Community College TY students become qualified baristas

School Dayz Transition Year students at Killarney Community College spent last Tuesday learning the skills to become baristas. They completed a full-day training course and are now qualified to make […]

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3 hours ago

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21 May 2025

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School Dayz

Transition Year students at Killarney Community College spent last Tuesday learning the skills to become baristas.

They completed a full-day training course and are now qualified to make coffee, which could make them very employable in local cafes and restaurants this summer.
Their teachers, who are described as the school’s “resident coffee experts,” were impressed with the students’ hard work and enjoyed the lattes, cappuccinos, and Americanos the students made throughout the day.
In addition to their barista training, the TY students also took a trip to Mallow. There, they learned about the rules of the road, practiced the driver theory test, and many got behind the wheel of a car for the first time. They also learned about the dangers of speeding and driving under the influence of alcohol and drugs.

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Rising stars Amano and Lillie Foley to share stage in ANAM

Two of Killarney’s rising musical talents, Amano and Lillie Foley, are set to perform their first ever joint headline concert at the ANAM Cultural Centre. Singer-songwriter and sean nós singer […]

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19 hours ago

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20 May 2025

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Two of Killarney’s rising musical talents, Amano and Lillie Foley, are set to perform their first ever joint headline concert at the ANAM Cultural Centre.

Singer-songwriter and sean nós singer Amano will bring her ‘Mythilligocial Meitheal Tour’ home for a special live performance of both her contemporary and traditional music.

Joining her on the night is local rising star Lillie Foley, making it a special event to celebrate two young Killarney songwriters making their mark on the Irish music scene. The event is supported by Kerry County Council Arts Office.

Amano, described by Hot Press in 2024 as an “idiosyncratic talent” is comfortable performing in both English and Irish, draws influences from alt-folk, R&B, and traditional sean-nós singing.

Her project THREAD was nominated for Irish language Album and Song of the year at the Gradaim Nós in 2024.

Her recent singles, ‘Burn’ and ‘The Birthing House’, have received airplay on RTÉ Radio 1, Radio Kerry, and Raidió na Life.

Lillie Foley, a 22-year-old singer who recently graduated from the Irish World Academy of Music and Dance with a BA in Voice, has released two debut singles in 2025, ‘Someday’ and ‘That’s Life’, which blend pop, soul, and folk genres.

The event is supported by Kerry County Council Arts Office.

The concert will take place on May 23, at the ANAM Cultural Centre in Killarney, starting at 7:00pm. Tickets are available from €15 plus a booking fee on Ticketpass.org.

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