Payment is received from employee.
You provide a company van to your employee for business and private use on 1 January. The original market value (OMV) of the van is €18,000. Your employee pays you €500 annually towards the running costs of the van. The calculation of the value of the benefit is:
€18,000 x 5 = €900
Less amount paid by employee (€500)
Value of the benefit €400
As the value of the benefit is €400, this must be added to their taxable pay for the year.