Employers in the car and motor industry
Employers in the car and motor industry may use the below figures as the Original Market Value. These reduced figures are used to calculate Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC). How to calculate the tax on this benefit is explained in Private use of employer provided cars.
Motor retailers selling used cars only and short-term car hire providers
Used cars only and short-term car hire
| Original Market Value | Original Market Value for calculations |
|---|
| Up to €30,000 |
€15,000 |
| €30,001 - €35,000 |
€18,000 |
| €35,001 - €40,000 |
€21,000 |
| €40,001 - €45,000 |
€24,000 |
| €45,001 - €50,000 |
€27,000 |
| €50,001 - €55,000 |
€30,000 |
| €55,001 - €60,000 |
€33,000 |
Motor retailers selling new and used cars
New and used cars
| Original Market Value | Original Market Value for calculations |
|---|
| Up to €30,000 |
€18,000 |
| €30,001 - €35,000 |
€21,000 |
| €35,001 - €40,000 |
€24,000 |
| €40,001 - €45,000 |
€27,000 |
| €45,001 - €50,000 |
€30,000 |
| €50,001 - €55,000 |
€33,000 |
| €55,001 - €60,000 |
€36,000 |
Motor distributors and leasing
Distributors and leasing
| Original Market Value | Original Market Value for calculations |
|---|
| Up to €30,000 |
€22,000 |
| €30,001 - €35,000 |
€25,000 |
| €35,001 - €40,000 |
€30,000 |
| €40,001 - €45,000 |
€34,000 |
| €45,001 - €50,000 |
€38,000 |
| €50,001 - €55,000 |
€42,000 |
| €55,001 - €60,000 |
€44,000 |
How to calculate the reduced figure if the Original Market Value is more than €60,000
Add 75% of the difference, between the Original Market Value and €60,000, to the ‘€55,001 - €60,000’ category figure. This is the value you use to calculate the tax due on the benefit.
- Example
You are the owner of a garage selling new and used cars. Your employee privately uses a car with an Original Market Value of €80,000.
How to calculate the reduced Original Market Value to use:
|
Difference between the car’s Original Market Value and €60,000
(€80,000 - €60,000)
|
€20,000
|
|
75% of this difference
|
× 75%
|
| |
€15,000
|
|
Add to new and used cars ‘€55,001 - €60,000’ category Original Market Value
|
€36,000
|
|
Original Market Value for calculations
|
€51,000
|
If your employee drives multiple cars
You should use the car with the highest Original Market Value when determining the Original Market Value for calculating tax.
Occasionally using a car in a higher or lower bracket will not affect the Original Market Value for calculating tax.
Using the actual Original Market Value
Your employee has a right to calculate their taxable benefit using the actual Original Market Value of the car(s) they use. If your employee exercises this right, you must adjust your calculation of tax so the actual Original Market Value is used.
What happens if you do not comply?
A Revenue audit may find that you did not tax your employees’ private use of cars. If so the special arrangement for motor industry employers will not apply and the full Original Market Value will be used.