Ready Reckoners

Use of the Weekly / Monthly Ready Reckoner

These ready reckoners are designed to assist the employer in calculating the notional pay appropriate to the private use of a company car provided to an employee.

There are separate ready reckoners for weekly paid and monthly paid employees. However, the weekly reckoner may be used for other pay periods, e.g. the figures corresponding to every second pay week will be applicable to fortnightly paid employees, every fourth pay week will be applicable to four weekly paid employees.

The ready reckoners are effective irrespective of whether the car was available on 1 January in the year or made available at a later date in the year or was given up during the course of the year. Using the ready reckoners should, in general, ensure that the correct amount is taken into account for PAYE and PRSI purposes for whatever period of the year a car is available. Where the company car is changed, refer to Paragraph 10 below.

The cumulative kilometres in the ready reckoners refers to cumulative business kilometres in the tax year in relation to the particular car.

OMV refers to the Original Market Value of the company car.

For weekly paid employees who have the use of a company car as at 1 January, the charge corresponding to week 1 on the weekly reckoner will apply.

For monthly paid employees who have the use of a company car as at 1 January, the charge corresponding to month 1 on the monthly reckoner will apply.

For all other employees, week 1 / month 1 corresponds to the first pay period during which the company car was provided, e.g. where an employee receives a company car on 1 June, the notional pay for the first pay period is calculated by reference to the charge shown at week 1/ month 1 as appropriate and so on for the balance of the year.

The cumulative amount of notional pay for a pay period should be added on the TDC or own system to the cumulative normal pay for that period and PAYE and PRSI operated on the cumulative aggregate – see sample TDC entries in the examples below.

Where an employee changes company cars during the year, the notional pay in respect of the new car is to be calculated on the same basis as a car first acquired during the course of a year see paragraph 8 above. The percentages for week1 / month1 are to be applied to the OMV of the new car for the first pay period in which the car is available and so on for the balance of the year. Where the change takes place during the course of a pay period the notional pay for that period should be calculated on a pro rata basis in respect of both cars.

Any amounts made good to the employer in a year in respect of the cost of providing a car should, on a cumulative basis, be deducted from the notional pay in relation to the car calculated by reference to the ready reckoner. The cumulative amount from the previous 1 January or the appropriate later date, where the car is acquired during the course of the year including a change of car, should be used.

In the absence of actual business kilometres for the first pay period a reasonable estimate may be used and the matter corrected in later pay periods as actual figures become available.

Weekly Ready Reckoner (PDF, 22KB)
Monthly Ready Reckoner (PDF, 18KB)

The following examples illustrate how the ready reckoners should be used.

Example 1 - Weekly paid employee
Example 2 - Car made available for part of the year only
Example 3 - Change of Company Car

Example 1 - Weekly paid employee

A weekly paid employee earning €500 per week has a company car (original market value €20,000) at 1 January. She travels 800 business kilometres in the first week and pays €20 per week to her employer towards the running cost of the car.

As this is the first week during which the employee has the use of the company car in the tax year, week 1 applies. The business kilometres fall into Band 4. The notional pay is therefore calculated as follows -

    Cash equivalent:  €20,000 x 0.23%   =   €46
    Less amount made good to employer   =  (€20)
    Notional pay =                          €26

For the purposes of calculating PAYE/PRSI the notional pay of €26 in week 1 should be added to the actual pay of €500 for that week, making the gross pay for week 1 and the cumulative gross pay for week 1 - €526.

Example 1a: Week 1
Wk No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period	Tax refunded this period
1	526.00	526.00	538.46	105.20	0.00	105.20	44.61	60.59	60.59
2			1076.92				89.22

Note: * cumulative

The net actual pay due to the employee in week 1 is €439.41 (€500 – tax due €60.59) less PRSI due.

In week 2, the employee does a further 160 business kilometres. She continues to make good €20 per week direct to her employer for the use of the car.

As this is the second week during which the employee has the use of the company car in the tax year, week 2 applies.

The cumulative business kilometres (960 kilometres) now falls into Band 2. The cumulative notional pay is calculated as follows -

    Cumulative cash equivalent: €20,000 x 0.92% =     €184
    Less cumulative amount made good            =    (€ 40)
    Cumulative notional pay =                         €144
    Notional pay for week 2 =                   €118 (€144 - €26)

For the purposes of calculating PAYE/PRSI, the notional pay of €118 in week 2 should be added to the actual pay of €500 for that week making the gross pay for week 2 - € 618 and the cumulative gross pay for week 2 - €1144 (€618 + €526).

Example 1b: Week 2
Wk No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	526.00	526.00	538.46	105.20	0.00	105.20	44.61	60.59	60.59
2	618.00	1144.00	1076.92	215.38	28.17	243.55	89.22	154.33	93.74
3			1615.38				133.83

Note: * cumulative

The net actual pay due to the employee in week 2 is €406.26 (€500 – tax due €93.74) less PRSI due.

In week 3, the employee does a further 800 business kilometres. She continues to make good €20 per week direct to her employer for the use of the car.

As this is the third week during which the employee has the use of the company car in the tax year, week 3 applies. The cumulative business kilometres (1760 kilometres) now falls into Band 2. The cumulative notional pay is calculated as follows -

    Cumulative cash equivalent €20,000 x 1.38%  =      €276
    Less cumulative amount made good            =     (€ 60)
    Cumulative notional pay  =                         €216
    Notional pay for week 3  =                    €72 (€216 – €144)

For the purposes of calculating PAYE/PRSI, the notional pay in week 3 of €72 should be added to the actual pay of €500 for that week making the gross pay for week 3 - €572 and the cumulative gross pay for week 3 - €1716 (€1144 + 572).

Example 1c: Week 3
Wk No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	526.00	526.00	538.46	105.20	0.00	105.20	44.61	60.59	60.59
2	618.00	1144.00	1076.92	215.38	28.17	243.55	89.22	154.33	93.74
3	572.00	1716.00	1615.38	323.07	42.26	365.33	133.83	231.50	77.17
4			2153.84				178.44

Note: * cumulative

The net actual pay due to the employee in week 3 is €422.83 (€500 – tax due €77.17) less PRSI due.

Example 2 - Car made available for part of the year only

A monthly paid employee is given the use of a company car (original market value €30,000) on 1 June (month 6 of the tax year). She travels 1900 business kilometres in the first month and pays €100 to her employer towards the running cost of the car. Her normal cash salary is €2,500 per month.

As this is the first month during which the employee has the use of the company car in the tax year, month 1 applies. The business kilometres fall into Band 1. The notional pay is therefore calculated as follows:

    Cash equivalent:  €30,000 x 2.5%     =       €750
    Less amount made good to employer    =      (€100)
    Notional pay for month 6 of tax year =       €650

For the purposes of calculating PAYE and PRSI, the notional pay in month 6 of €650 should be added to the actual pay of €2,500 for that month, making the gross pay for month 6 - €3,150 and the cumulative gross pay for month 6 - €15,650 (€12,500 + €3,150).

Example 2a: Month 6
Month No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	2500.00	2500.00	2333.33	466.66	70.00	536.66	193.33	343.33	343.33
2	2500.00	5000.00	4666.66	933.33	140.00	1073.33	386.66	686.67	343.34
3	2500.00	7500.00	6999.99	1400.00	210.00	1610.00	579.99	1030.01	343.34
4	2500.00	10000.00	9333.32	1866.66	280.00	2146.66	773.32	1373.34	343.33
5	2500.00	12500.00	11666.65	2333.33	350.00	2683.33	966.65	1716.68	343.34
6	3150.00	15650.00	13999.98	2800.00	693.00	3493.00	1159.98	2333.02	616.34
7			16333.31				1353.31

Note: * cumulative

The net actual pay due to the employee in month 6 is €1,883.66 (€2,500 – tax due €616.34) less PRSI due.

In July (month 7 of the tax year) the employee does a further 3200 business kilometres . She continues to make good €100 per month direct to her employer for the use of the car.

As this is the second month during which the employee has the use of the company car in the tax year, the cash equivalent for the car must be calculated by reference to month 2 of the ready reckoner. The cumulative business kilometres (5100 kilometres) now falls into Band 2. The cumulative notional pay is calculated as follows:

    Cumulative cash equivalent:  €30,000 x 4%    =   €1,200
    Less cumulative amount made good to employer =  (€  200)
    Cumulative notional pay =                        €1,000
    Notional pay for month 2 =                 €350 (€1,000 – €650)

For the purposes of calculating PAYE and PRSI, the notional pay in month 7 of €350 should be added to the actual pay of €2,500 for that month, making the gross pay for month 7 - €2,850 and the cumulative gross pay for month 7 - €18,500 (€15,650 + €2,850)

Example 2b: Month 7
Month No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	2500.00	2500.00	2333.33	466.66	70.00	536.66	193.33	343.33	343.33
2	2500.00	5000.00	4666.66	933.33	140.00	1073.33	386.66	686.67	343.34
3	2500.00	7500.00	6999.99	1400.00	210.00	1610.00	579.99	1030.01	343.34
4	2500.00	10000.00	9333.32	1866.66	280.00	2146.66	773.32	1373.34	343.33
5	2500.00	12500.00	11666.65	2333.33	350.00	2683.33	966.65	1716.68	343.34
6	3150.00	15650.00	13999.98	2800.00	693.00	3493.00	1159.98	2333.02	616.34
7	2850.00	18500.00	16333.31	3266.66	910.00	4176.66	1353.31	2823.35	490.33
8			18666.64				1546.64

Note: * cumulative

The net actual pay due to the employee in month 7 is €2,009.67 (€2,500 – tax due €490.33) less PRSI due.

In August (month 8 of the tax year) the employee does a further 4,000 business kilometres. She continues to make good €100 per month direct to her employer for the use of the car.

As this is the third month during which the employee has the use of the company car in the tax year, the cash equivalent for the car must be calculated by reference to month 3 of the ready reckoner. The cumulative business kilometres (9,100 kilometres) now falls into Band 3. The cumulative notional pay is therefore calculated as follows:

    Cumulative cash equivalent:  €30,000 x 4.5%  =     €1,350
    Less cumulative amount made good to employer =    (€  300)
    Cumulative notional pay =                          €1,050
    Notional pay for month 3 is only              €50 (€1,050 - €1,000)

For the purposes of calculating PAYE and PRSI, the notional pay in month 7 of the tax year of €50 should be added to the actual pay of €2,500 for that month, making the gross pay for month 8 - €2,550 and the cumulative gross pay for month 8 - €21,050 (€ 18,500 + €2,550).

Example 2c: Month 8
Month No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	2500.00	2500.00	2333.33	466.66	70.00	536.66	193.33	343.33	343.33
2	2500.00	5000.00	4666.66	933.33	140.00	1073.33	386.66	686.67	343.34
3	2500.00	7500.00	6999.99	1400.00	210.00	1610.00	579.99	1030.01	343.34
4	2500.00	10000.00	9333.32	1866.66	280.00	2146.66	773.32	1373.34	343.33
5	2500.00	12500.00	11666.65	2333.33	350.00	2683.33	966.65	1716.68	343.34
6	3150.00	15650.00	13999.98	2800.00	693.00	3493.00	1159.98	2333.02	616.34
7	2850.00	18500.00	16333.31	3266.66	910.00	4176.66	1353.31	2823.35	490.33
8	2550.00	21050.00	18666.64	3733.33	1001.01	4734.34	1546.64	3187.70	364.35
9			20999.97				1739.97

Note: * cumulative

The net actual pay due to the employee in month 8 is €2,135.65 (€2,500 – tax due €364.35) less PRSI due.

Example 3 - Change of Company Car

A monthly paid employee has a company car (original market value €30,000) at 1 January. She travels 1900 business kilometres in the first month and pays €100 to her employer towards the running cost of the car. Her normal cash salary is €3,500 per month.

Month 1

    Cash equivalent:  €30,000 x 2.5%  =  €750
    Less amount made good to employer = (€100)
    Notional pay =                       €650

For the purposes of calculating PAYE/PRSI the notional pay of €650 in month 1 should be added to the actual pay of €3,500 for that month, making the gross pay for month 1 and the cumulative gross pay for month 1 - €4,150.

Example 3a: Month 1
Month No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period	Tax refunded this period
1	4150.00	4150.00	2333.33	466.66	763.00	1229.66	193.33	1036.33	1036.33
2			4666.66				386.66

Note: * cumulative

The net actual pay due to the employee in month 1 is €2,463.67 (€3,500 – tax due €1036.33) less PRSI due.

Month 2

In February, the employee does a further 3200 business kilometres. She continues to make good €100 per month direct to her employer for the use of the car.

As this is the second month during which the employee has the use of the company car in the tax year, month 2 applies. The cumulative business kilometres (5100 kilometres) now falls into Band 2. The cumulative notional pay is calculated as follows:

    Cumulative cash equivalent:  €30,000 x 4%    =       €1,200
    Less cumulative amount made good to employer =      (€  200)
    Cumulative notional pay  =                           €1,000
    Notional pay for month 2 =                     €350 (€1,000 – €650)

For the purposes of calculating PAYE/PRSI the notional pay of €350 in month 2 should be added to the actual pay of €3,500 in month 2 making the gross pay for that month - €3,850 and the cumulative gross pay for month 2 - €8,000.

Example 3b: Month 2
Month No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	4150.00	4150.00	2333.33	466.66	763.00	1229.66	193.33	1036.33	1036.33
2	3850.00	8000.00	4666.66	933.33	1400.00	2333.33	386.66	1946.67	910.34
3			6999.99				579.99

Note: * cumulative

The net actual pay due to the employee in month 2 is €2589.66 (€3,500 – tax due €910.34) less PRSI due.

Month 3

Halfway through month 3, the employee changes to a different company car. The new car has an original market value of €20,000. She does a further 2,400 business kilometres in month 3 – 1,600 kilometres in car 1 and 800 kilometres in car 2 - and continues to make good €100 per month (€50 for each car) direct to her employer for the use of the car.

The taxable benefit for month 3 must be calculated by reference to the use of each of the cars in that month.

First Car

Cumulative kilometres in car 1 for months 1, 2 and 3 is 6,700. This is in band 2 of month 3.

    Cash equivalent €30,000 x 6%     =                      €1,800
    Less cumulative amount made good =                     (€  250)
                                                            €1,550
    Notional pay in respect of Car 1 for Month 3 =  €275  ((€1,550 – €1,000) x 1/2)

Second Car

Cumulative kilometres in Car 2 for month 3 is 800. Because of the change of car, the calculation of the cash equivalent for car 2 reverts to month 1 of the ready reckoner and the 800 kilometres falls within Band 1.

    Cash equivalent €20,000 x 2.5% =                       €500
    Less amount made good          =                      (€ 50)
                                                           €450
    Notional pay in respect of Car 2 for month 3 =  €225  (€450 x 1/2)

The notional pay to be taken into account for month 3 in respect of both cars is €500 (i.e. €275 + €225)

The cumulative notional pay for month 3 is arrived at by adding the amounts calculated for the first and second cars e.g.

    Cumulative Notional Pay for months 1 and 2 =          €1,000
    Notional Pay for month 3                   =          €  500
    Cumulative Notional Pay for month 3        =          €1,500

For the purposes of calculating PAYE and PRSI the monthly pay in month 3 of €500 should be added to the actual pay of €3500 for that month, making the gross pay for month 3 - €4,000 and the cumulative gross pay for month 3 - €12,000 (€8,000 + €4,000).

Example 3c: Month 3
Month No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	4150.00	4150.00	2333.33	466.66	763.00	1229.66	193.33	1036.33	1036.33
2	3850.00	8000.00	4666.66	933.33	1400.00	2333.33	386.66	1946.67	910.34
3	4000.00	12000.00	6999.99	1399.99	2100.00	3499.99	579.99	2920.00	973.33
4			9333.32				773.32

Note: * cumulative

The net actual pay due to the employee in month 3 is €2,526.67 (€3,500 - tax due €973.33) less PRSI due.

N.B. The notional pay calculation for month 4 is based on the cumulative business kilometres in car 2 and must be calculated by reference to month 2 on the ready reckoner as this is the second month that the employee has car 2.

The employee travels 3,200 business kilometres in each of months 4 and 5 and continues to pay €100 per month to her employer towards the running cost of the car. Her normal cash salary remains at €3,500 per month.

Month 4

As this is the second month during which the employee has the use of the company car 2 in the tax year, month 2 applies in respect of that car. The cumulative business kilometres for car 2 is 4000 kilometres (800 + 3,200) this now falls into Band 2. The cumulative notional pay is calculated as follows:

    Cumulative cash equivalent:  €20,000 x 4%    =  €800
    Less cumulative amount made good to employer = (€150)
    Cumulative notional pay for car 2            =  €650

As €225 notional pay (€450 x 1/2) has already been taken into account for car 2 during month 3, the notional pay for month 4 is €425 (€650 - €225).

For the purposes of calculating PAYE and PRSI the notional pay in month 4 of €425 should be added to the actual pay of €3,500 for that month, making the gross pay for month 4 - €3,925 and the cumulative gross pay for month 4 - €15,925. (€12,000 + €3,925)

Example 3d: Month 4
Month No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	4150.00	4150.00	2333.33	466.66	763.00	1229.66	193.33	1036.33	1036.33
2	3850.00	8000.00	4666.66	933.33	1400.00	2333.33	386.66	1946.67	910.34
3	4000.00	12000.00	6999.99	1399.99	2100.00	3499.99	579.99	2920.00	973.33
4	3925.00	15925.00	9333.32	1866.66	2768.50	4635.16	773.32	3861.84	941.84
5			11666.65				966.65

Note: * cumulative

The net actual pay due to the employee in month 4 is €2,558.16 (€3,500 - tax due €941.84) less PRSI due.

Month 5

As this is the third month during which the employee has the use of the company car 2 in the tax year, month 3 applies in respect of that car. The cumulative business kilometres for car 2 is 7,200 kilometres (800 + 3,200 + 3,200) This now falls into Band 2. The cumulative notional pay is calculated as follows:

    Cumulative cash equivalent:  €20,000 x 6%    =  €1,200
    Less cumulative amount made good to employer = (€  250) 
    Cumulative notional pay for car 2            =  €  950
    Less amount already taken into account       = (€  650) 
    Notional pay for month 5 is                     €  300

For the purposes of calculating PAYE/PRSI the notional pay in month 5 of €300 should be added to the actual pay of €3,500 for that month, making the gross pay for month 5 - €3,800 and the cumulative gross pay for month 4 - €19,725. (€15,925 + €3,800).

Example 3e: Month 5
Month No.	Gross Pay (less Super-annuation) this period	Gross Pay to date*	Standard Rate Cut-off-Point*	Tax Due at Standard Rate*	Tax Due at Higher Rate*	Gross Tax*	Tax Credit*	Tax (Cannot be less than 0)	Tax deducted this period
1	4150.00	4150.00	2333.33	466.66	763.00	1229.66	193.33	1036.33	1036.33
2	3850.00	8000.00	4666.66	933.33	1400.00	2333.33	386.66	1946.67	910.34
3	4000.00	12000.00	6999.99	1399.99	2100.00	3499.99	579.99	2920.00	973.33
4	3925.00	15925.00	9333.32	1866.66	2768.50	4635.16	773.32	3861.84	941.84
5	3800.00	19725.00	11666.65	2333.33	3384.50	5717.83	966.65	4751.18	889.34

Note: * cumulative

The net actual pay due to the employee in month 5 is €2,610.66 (€3,500 – tax due €889.34) less PRSI due.

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