THE GOVERNMENT IS reducing the amount of income tax that employees using a company car will be liable to pay for all except the heaviest-emitting vehicles.
Vehicles are classified into categories from A to E depending on their emissions. Those that produce fewer emissions , especially electric vehicles, are liable for less tax than ones that produce more emissions and thus have a worse impact on the environment. A government statement said that “while the move to a C02-based benefit-in-kind system, which incentivises the use of electric vehicles and lower emission cars, is an important element of achieving our climate targets”, it observed that a “significant number” of employees with vehicles “in the typical emissions range experienced large increases in their income tax liabilities since the start of 2023″.
“In effect, this means that, for the purposes of calculating BIK liability, employers may reduce the OMV by €10,000.”
Moved from diesel to petrol hybrid and I still have to pay double of what I paid before. They are talking absolute shite about putting people into cleaner cars. It’s a tax grab plan & simple.