18.11.2003

Benefit In Kind will not apply to vans in Ireland

The Irish Finance minister Charlie McCreevy, announced today that Benefit In Kind (BIK) would not now apply to Vans kept essentially for business use.

Following last years budget, all BIK, including the “Benefit” of personal use of a company Van, were due to come within the PAYE scheme from Jan 1 2004.

But in an announcement today Charlie McCreevy stated: “A major concern has been bought to my attention recently, to the effect that under the terms of the new scheme PAYE, PRSI and levies would apply to employees private use of company vans from January 1 next year (but) in relation to employees whose sole private use is to bring the van home, BIK would not now apply to such vans”

BIK will not be levied provided that the van is essentially for the purposes of the employees work or, where there is an employer requirement to bring the van home.

This exemption will also apply to other such devices as mobile phones and computers that are used at home for company business.

“It is not the intention to apply BIK to something that is for business use,” said McCreevy.