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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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Minister Niall Collins visits KCYS Youth Diversion Project

Kerry Community Youth Service (KCYS) was pleased to welcome Minister Niall Collins to its Youth Diversion Project in Kilarney last week. The visit gave the Minister an opportunity to meet […]

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1 day ago

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28 April 2026

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Kerry Community Youth Service (KCYS) was pleased to welcome Minister Niall Collins to its Youth Diversion Project in Kilarney last week.

The visit gave the Minister an opportunity to meet staff and hear directly about the work of the Kerry Youth Diversion Project, including early intervention, family support, court accompaniment and wider youth justice practice across the county.
KCYS supports young people across a broad continuum of services in Kerry, from preventative and developmental youth work through to highly targeted interventions for young people and families facing significant challenge and complexity. The Youth Diversion Project forms an important part of that wider continuum of support.
Speaking following the visit, Seamus Whitty, CEO of KCYS, said:
“We were delighted to welcome Minister Collins to Kerry and to have the opportunity to give him a sense of the breadth and depth of the work being carried by the Youth Diversion Project here.
The Youth Diversion Project in Kerry is a strong and well-developed intervention, grounded in practice, informed by evidence, and marked by innovation in how it supports young people and families. It is part of a broader continuum of supports provided by KCYS, and it depends on strong collaboration across teams, services and community partners to make a real difference in people’s lives.
It is also important to acknowledge the Department’s continued commitment to youth justice. The policy direction in this area has been a progressive one, and that has created space for work of this kind to develop and respond to need in a meaningful way.”
The visit highlighted the scale and complexity of the work being carried by the KCYS team, and the importance of sustained investment in youth work responses for young people and families.

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Cllr O’Callaghan highlights deep-rooted bond between town and rally

Representing the Killarney Municipal District at Sunday’s Assess Ireland Rally of the Lakes launch, Cllr Niall ‘Botty’ O’Callaghan praised the enduring partnership between the Rally of the Lakes and the […]

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2 days ago

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28 April 2026

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Representing the Killarney Municipal District at Sunday’s Assess Ireland Rally of the Lakes launch, Cllr Niall ‘Botty’ O’Callaghan praised the enduring partnership between the Rally of the Lakes and the local community.

For the O’Callaghan family, the event is deeply personal; they own and operate the Failte Hotel on College Street, a landmark business that has grown alongside the rally for decades.
Cllr O’Callaghan noted that the history of the Failte Hotel is inextricably linked with the rally’s heritage, serving as a hub for competitors and fans since the early days of the event.
He said that the rally has become a vital part of the fabric of Killarney life, providing a massive economic and social boost to the town. “The rally has been part of the hotel’s history as much as the hotel has been part of the rally’s history,” he told the gathered crowd, expressing his pride in seeing the tradition continue.
He welcomed the organisers and sponsors to Gleneagle, wishing the event continued success as it remains a cornerstone of the Killarney sporting calendar.

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