Reintroduction of Benefit in Kind Concession for Company Cars Welcomed
The reintroduction of a concession for employees who use a company car for limited personal use as part of the Benefit in Kind (BIK) regime for “Employer-Provided Vehicles” has been welcomed by Labour spokesperson for Finance, Ged Nash TD.
This concession ceased to apply on 31 December 2020, however has since been reintroduced for the duration of the pandemic following representations made to the Revenue Commissioners and the Minister for Finance by Deputy Nash.
Deputy Nash said:
“In response to the unfolding COVID-19 crisis in March 2020, Revenue introduced an appropriate and fair COVID-19 concession for BIK wherein mileage travelled in January 2020 may be used as a base month for the purposes of calculating the amount of benefit-in-kind due in the case ‘where an employee who has a company car and…personal use is limited’.
“I, and my party colleagues, received numerous calls from constituents who would have been unfairly levied thousands of euros because of the lapse of this concession. These are workers who are now bound to work from home due to the Government regulations, and many do not know when they will see a return to work. It has particular consequences for workers who have no other means of transport, predominantly in rural areas, and therefore rely on limited private use of their company car.
“In this context, I am pleased that Revenue will now take a common sense approach to this issue, which, if left unaddressed, would add additional stress and concern to workers at an already worrying time.
“This BIK was originally intended by Revenue to cover the duration of the pandemic. The Labour Party is satisfied at its re-introduction and I am reiterating my call to the Minister to ensure it is maintained for the duration of the pandemic restrictions.”
For full information regarding the regime, please visit the Revenue’s website: https://www.revenue.ie/en/corporate/communications/covid19/compliance-with-certain-reporting-and-filing-obligations.aspx