WHEN 0% REALLY ADDS UP.
The recent introduction of 0% Benefit-in-Kind Tax (BIK) may not sound like much, but it could mean big savings for companies and employees alike. A benefit in kind refers to any non-cash benefit of monetary value that employers provide for their employees. That includes perks like a company car. Such benefits must be treated as taxable income.
So for any petrol or diesel vehicles provided, employers have to deduct Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) from their employee's pay on the value of the car. But with 0% BIK on fully electric vehicles, companies can now provide employees with a BMW i3 without any deductions. That could mean gains of up €4,000 for employees while reducing the carbon footprint of the company.