Employers in the car and motor industry
Employers in the car and motor industry may use the below figures as the Original Market Value (OMV). 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
| OMV | OMV 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
| OMV | OMV 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
| OMV | OMV 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 OMV is more than €60,000
Add 75% of the difference, between the OMV 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 OMV of €80,000.
How to calculate the reduced OMV to use:
|
Difference between the car’s OMV and €60,000
(€80,000 - €60,000)
|
€20,000
|
|
75% of this difference
|
x 75%
|
| |
€15,000
|
|
Add to new and used cars ‘€55,001 - €60,000’ category OMV
|
€36,000
|
|
OMV for calculations
|
€51,000
|
If your employee drives multiple cars
You should use the car with the highest OMV when determining the OMV for calculating tax.
Occasionally using a car in a higher or lower bracket will not affect the OMV for calculating tax.
Using the actual OMV
Your employee has a right to calculate their taxable benefit using the actual OMV of the car(s) they use. If your employee exercises this right, you must adjust your calculation of tax so the actual OMV 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 OMV will be used.