P.A.Y.E. and P.R.S.I. is chargeable on Benefits in Kind (BIK).
Cars
Cars are the subject of the most common form of BIK. If you need assistance with calculations, consult your tax advisor or email us at tax@fixmytax.com. BIK on cars is now linked to the CO2 emissions of cars.
If you work abroad during the year, you may be able to claim a reduction in the BIK charge on the company car if you travel abroad without the car and:
- you spend a total of at least 30 days abroad, and
- the car is not available for use by your family or household.
If you use your own car for business mileage you can claim a tax-free allowance on a mileage basis. Approval by the Inspector of Taxes is not required where rates not exceeding the civil service mileage rates are used.
Preferential Loans
If you receive a loan at a preferential interest rate you will have a BIK. This is based on the difference between the interest calculated at the specified rate and the actual interest paid. The specified rate is generally 12%, except where the loan is used in connection with your principal private residence when the specified rate is 6%.
Other BIKS
If your employer pays your health insurance or pays for other benefits on your behalf, for example club subscriptions, these will be taxed as a BIK. The BIK provisions specifically do not apply to childcare facilities provided by an employer or a monthly or annual bus or train pass paid for by an employer.
If you require more information please consult your tax advisor or email us at tax@fixmytax.com. |
