Private use of company vans

Van allowances

Your employee will have to pay Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) if you give them:

  • a sum of money as a van allowance
  • money to buy a van.

No tax is due if you refund your employee expenses for the running of their own van. The expenses must have been incurred wholly, exclusively and necessarily for the purposes of your business.

Next: Exemptions from BIK