Benefit in Kind (BIK) on Employer-Provided Vehicles

The following will apply for BIK on employer-provided vehicles for 2024:

  • A reduction of €10,000 will apply to the original market value (OMV), to reduce the amount of BIK payable, for all cars in Category A,B,C and D (not E) and all vans.
  • The current reduction of €35,000 in OMV will continue to apply for all electric vehicles.
  • The lower mileage limit in the highest mileage band which applies to employer-provided cars will remain at 48,000.
For 2025, 2026 and 2027, the reductions in the OMV for electric vehicles will be €35,000, €20,000 and €10,000 respectively.

Certain Profits from Micro-Generated Electricity

You may choose to provide an electric car for private use by your employee, with partial relief available for electric cars made accessible between 1 January 2023 and 31 December 2027. This relief reduces the Original Market Value (OMV) of the car, with specific reductions depending on the year: €35,000 for cars made available in 2023, 2024, and 2025; €20,000 in 2026; and €10,000 in 2027. If the relief reduces the OMV to nil, no Benefit-in-Kind (BIK) charge will arise. Any OMV exceeding the reduction will be subject to BIK as usual. Additionally, for 2023, 2024, and 2025, an extra €10,000 reduction can be applied to the OMV.

BIK exemptions also exist for charging electric vehicles. An exemption applies if you provide a charging point on your business premises, provided it is available for all employees and directors. From 1 January 2025, another exemption applies to electric vehicle charging points installed at an employee’s or director’s primary private residence, subject to conditions. These include retaining ownership of the charging facility, the employee or director having private use of your electric vehicle, and the charging point being installed at their sole or main residence within the State. This exemption does not apply to hybrid electric vehicles.

Company Cars

Lower limit (km) Uppler limit (km) Vehicle Category A Vehicle Category B Vehicle Category C Vehicle Category D Vehicle Category E
0 26,000 22.5% 26.25% 30% 33.75% 37.5%
26,001 39,000 18% 21% 24% 27% 30%
39,001 48,000* 13.5% 15.75% 18% 20.25% 22.5%
48,001* and above 9% 10.5% 12% 13.5% 15%

* Applies to 2023 and 2024 year of assessment only.

The CO2 emission categories are as follows

Vehicle Category CO2 Emissions (CO2 g/KM)
Category A 0g/km up to and including 59g/km
Category B More than 59g/km up to and including 99g/km
Category C More than 99g/km up to and including 139g/km
Category D More than 139g/km up to and including 179g/km
Category E More than 179g/km

Preferential Loans

PA preferential loan is a loan made by you to your employee or former employee, or their spouse. It arises where the rate of interest applied to the loan in a year is lower than the specified rate. The specified rate is set by the Department of Finance.

A preferential loan is a taxable benefit-in-kind. Your employee is chargeable under the Pay As You Earn (PAYE) system on the benefit to:

  • Income Tax
  • Pay Related Social Insurance (PRSI)
  • Universal Social Charge (USC).

Specified Rates

The current specified rates are
Qualifying Home Loans 4%
All Other Loans 13.5%
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