Electric Vehicles – Tax exemption

Electric Vehicles – Tax exemption

If your employee receives an electric company car  (EV’s), no charge to tax will arise in respect of that private use.

This exemption is for cars that get their motive power from electricity only and there is a cap of €50,000 on the value after which BIK is imposed.

This exemption is in force from 1 January 2018 and applies to both new and used electric company cars.

1. Employers can offer EV’s as a benefit to employees or directors 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.

Any queries on the above, give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie