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Private use of employer-provided vehicles

  1. Overview
  2. How to calculate the taxable benefit
  3. Employees with low business kilometres
  4. Employer-provided vehicles not available for the full year
  5. Exemptions
  6. Other Benefit-in-Kind issues

Employees with low business kilometres

If your employee does not travel more than 24,000 kilometres annually, the cash equivalent calculated may be further reduced by 20%. To get this reduction, your employee must also:

  • work an average of at least 20 hours per week
  • travel at least 8,000 business kilometres annually
  • spend at least 70% of their working time away from the employers’ premises
  • and
  • retain a log book with details of business kilometres and work purposes.
  • Example

    In 2024 your employee uses an employer-provided vehicle with an Original Market Value (OMV) of €30,000. It is a Category B vehicle and their annual business travel is 9,000 kilometres. They are not required to pay towards the cost, or the running expenses, of the car. Your employee spends more than 70% of working time away from your premises.

    As the car is a Category B vehicle, the OMV is reduced by €10,000 in order to calculate the cash equivalent.

    The cash equivalent is calculated as €4,200 for the year (€30,000 - €10,000 x 26.25% x 80%).

    Your employee is paid weekly. A cash equivalent of €180.76 (€4,200/52) should be added to their taxable wage. You should calculate Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on the total amount.

Next: Employer-provided vehicles not available for the full year

Published: 25 January 2024 Print this page

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