Plans for major hike in BIK on company cars from January motor ahead

As a direct result of feedback from Ibec member companies Ibec has been lobbying for a delay in the proposed changes to Benefit in Kind (BIK) on company cars. Ibec has contacted the Department of Finance to inform them that the proposed change is causing significant concern amongst members' workforces given the financial pressures many are now facing. Whilst the rationale for the changes were sound when announced in Finance Bill 2019, the costs involved could run into multiple thousands in additional taxation for workers on relatively modest salaries.

Ibec has asked for these changes to be delayed until the economic environment improves and will continue to engage with Government to ensure that these concerns are heard. As it stands however, it remains likely that these changes will come into effect from January.

The BIK charges which are expected to arise on the private use of employer provided vehicles from January 2023 are detailed in the Revenue Commissioner's manual on Employer provided vehicles available here.