Rules for Employees in the Motor Industry
Calculation of PAYE/PRSI
For the years 2004 onwards the following figures should be used as the average Original Market Value (OMV) for the calculation of PAYE/PRSI.
| Not Exceeding €30,000 | Over €30,000 but not Exceeding €35,000 | Over €35,000 but not Exceeding €40,000 | Over €40,000 but not Exceeding €45,000 | Over €45,000 but not Exceeding €50,000 | Over €50,000 but not Exceeding €55,000 | Over €55,000 but not Exceeding €60,000 | |
|---|---|---|---|---|---|---|---|
| Motor Retailers engaged in selling used cars only and short-term car hire providers | €15,000 | €18,000 | €21,000 | €24,000 | €27,000 | €30,000 | €33,000 |
| Franchised motor retailers who are engaged in selling new and used cars | €18,000 | €21,000 | €24,000 | €27,000 | €30,000 | €33,000 | €36,000 |
| Motor distributors and leasing | €22,000 | €25,000 | €30,000 | €34,000 | €38,000 | €42,000 | €44,000 |
Where the OMV(s) of the car(s) used by the employee normally exceeds €60,000, the figure to be taken should be the appropriate figure in the €55,000 to €60,000 category plus 75% of the difference between the OMV and €60,000. For example, in the case of a car with an OMV of €80,000, the figure to be used in the case of an employee of a franchised garage should be €51,000 (€36,000 + 75% of €20,000).
Agreed average OMV to be used in the case of an individual employee
The average OMV to be use should be based on the highest value of the car(s) which the employee normally drives. The occasional use of a car in a higher or lower bracket will not affect the figure for OMV.
Employee right to opt for actual OMV
An employee may at any time exercise their statutory right to have their benefit-in-kind calculated on the basis of the actual OMV of the cars made available to them during the course of the year. Where the employee exercises this right, the employer will have to carry out the necessary calculations and retain relevant evidence of the cars made available during the course of the year.
Non-application of the arrangements
Where in the course of an audit of an employer's tax affairs it comes to light that the employer has not complied with the statutory obligation to operate PAYE/PRSI in respect of the benefit-in-kind arising to employees from the availability of the private use of company cars, then the arrangement outlined will not apply in determining the tax liability of the employer.