Private use of employer provided vans
Overview
If you supply your employee with an employer provided van for private use, this is a Benefit in Kind (BIK). You must deduct Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) for this through payroll.
This is calculated by using the cash equivalent of the employer provided van.
Note
For the purposes of this section of the website, an ‘employer provided van’ refers to all vans provided to employees from their employer.
A van is a vehicle which:
- is made solely or mainly for the transport of goods
- has a roofed area behind the driver’s seat
- and
- has no side windows or seating fitted in the roofed area.
If a vehicle does not meet all the criteria above, the vehicle may be a car for tax purposes. Please see Private use of employer provided vehicles for further information.
This section is only applicable where ownership of the van does not transfer to the employee. If you transfer the van to your employee, general BIK rules shall apply. For further information, please see the Valuation of benefits section.
If you pay an allowance to an employee to allow them to purchase a van, this will be taxable salary and this section shall not apply.
Next: Calculating the cash equivalent of employer provided vans