Employer provided vehicles – updated guidance

Revenue has updates its Tax and Duty Manual regarding employer provided vehicles.  The main changes relate to the Finance Bill 2023 measures.

The updated manual provides confirmation that employers can, if they are in a position to do so, apply the new method of calculation of BIK prior to enactment of the legislation. Furthermore, employers should apply any necessary adjustments to the BIK calculations in respect of prior 2023 pay periods by way of a current period adjustment and not amend prior period payroll submissions. The examples have been updated to apply the new rules effective from 1 January 2023, to include the additional Finance Bill 2023 measures.  

Further information is contained in eBrief no.093/23.