BIK on Motor Vehicles 2025
The Finance Bill 2024 included an extension to the temporary measures previously introduced which will be welcome to businesses.
Electric Vehicles
The €10,000 deduction from the original market value of company-provided cars and vans will continue to apply for 2025. This deduction applies to EVs, vans, and cars in the emissions categories A to D. The current reduction of €35,000 from the original market value of electric vehicles will continue to apply in 2025. That reduction coupled with the €10,000 deduction means the total deduction from the original market value will be €45,000 for electric vehicles in 2025.
Employer provided charge points
BIK exemption to expenditure incurred by an employer in connection with the provision of a facility for the charging of an electric vehicle at a director’s or an employee’s home. This change will apply from 1 January 2025.
Car Pool Vehicle
If your employee uses an employer-provided vehicle in a car-pool, they do not have to pay the following on this benefit.
A car-pool exists where:
a car is available and used by more than one employee.
The car must not be regularly used by one employee who prevents others from using it
private use of the car by the employee is minimal
and
the car is not regularly kept overnight at or near the employee’s home.
BIK on Vans
The percentage BIK rate for vans when calculating the cash equivalent continues to be 8%.
Your employee will not pay tax on the benefit of an employer-provided van where:
you provide your employee with the van for work purposes and they have to bring it home afterwards. Your employee is not allowed to use the van for private travel apart from travelling to and from work
and
your employee spends at least 80% of their working day away from your work premises.
Where can I get the link to Revenue guide?
This link brings you to the Revenue website where you can review the Tables used for calculating BIK on company vehicles in the revenue set bands A to E. Revenue also uses 7 different examples showing various scenarios.
Remember
The €10,000 reduction in 2025 is not applicable to vehicles in category E.
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