Revenue has updated its guidance on Employer Provided Vehicles to reflect Finance Act 2024. A benefit-in-kind (BIK) exemption is available for the installation of a battery electric vehicle home charger by an employer at a director or an employee’s private residence.
Certain conditions must be satisfied to avail of this exemption, including a condition that the employer must retain ownership of the charging facility. Any amounts paid by the employer for the maintenance of the qualifying charging facility will also be exempt provided all the conditions are met.
Finance Act 2024 provides for the following temporary measures, to be used when calculating the BIK amount on employer provided vehicles, to be extended to apply for the tax year 2025:
- A reduction of €10,000 to the original market value (OMV) for all vans, electric vehicles and certain cars, and
- A reduction of 4,000 kilometres to the highest mileage band, reducing it from 52,001 kilometres to 48,001 kilometres.
The manual includes refreshed and updated examples which aim to provide additional guidance.
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