Electric Vehicle (EV) 0% Benefit in Kind Tax (BIK) – What Employers and Employees Now Gain 2019

Did you know that the new 0% BIK on EVs can be good for your business and employees too?!

A benefit in kind is any non-cash benefit of monetary value that an employer provides for their employee. These benefits are usually known as notional pay, fringe benefits or indeed perks. These benefits have monetary value and must therefore be treated as taxable income (www.Revenue.ie).

How could understanding BIK tax help you in your business?

Well, employers must 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 this benefit. When it comes to providing a working vehicle to an employee, a conventional company vehicle can attract up to 30% of the full retail price in Employee Gross Taxes. However, from 1 January 2018, no taxable benefit will arise for an employee or a director, where an employer provides an employee or director with an electric car or van. That means you get taxed less for providing an employee with an Electric Vehicle from 1 January 2018 (to 2021). Indeed you could stand to gain up to €4000+ in your first year of purchase!

Top 5 Points to Consider:

1. Employers can offer EV’s as a benefit to employees without attracting Employer PRSI.

2. Employees will benefit from no net pay deductions when provided with a EV Company Car.

3. Effectively an employee can benefit from free fuel from their employer due to the provision of electricity through company owned charge points, which does not give rise to a taxable benefit for the employee or director from 1 January 2018.

4. No BIK will be incurred on employees charging EVs at work – whether company owned or not.

5. Note that 0% BIK is not available on Hybrid or Plug-In Hybrid EV.

If you have more questions about how you or your company can gain from providing a 0% (BIK) electric vehicle to employees then do visit or contact us.

Windsor EV

Across our Natiowide Nissan Dealerships we stock the Nissan LEAF, the world and Ireland's leading EV. We also supply the eNV200, their fully electric version of the versatile NV200. While in our Renault Dealerships located in Galway and Airside, Swords, and Windsor MotorMall we stock the Renault ZOE,Renault Twizy, and the all-electric Kangoo ZE van.

The Nissan LEAF is Ireland's Best-Selling Electric Vehicle. In 2017 there were 257 Nissan LEAFs sold in Ireland. In 2018 that number skyrocketed to 789 units sold, an increase of 207%. In 2019, that number has risen yet again. By August 2019, the number of LEAF's sold was already 981 - a further increase of 44.9% over the same 8-month period in 2018. Of that impressive number, more than 75% of LEAFs in Ireland were sold by Windsor Nissan dealerships.

2019 is seeing further growth in Windsor's EV offering, with the new 62kWh Nissan LEAF now available for purchase. There are also new EVs coming down the pipeline including the new Opel eCorsa, and the new Peugeot 208e, as well as more exciting announcements to come.

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