Free use of assets (other than accommodation, company cars or vans)

You might choose to provide your employee with free use of your assets, other than accommodation, company cars or vans. This is a taxable benefit and they will be chargeable under the Pay As You Earn (PAYE) system on that benefit to:

‘Free use’ means that you allow your employee use the asset without giving them ownership of it.

Value of the benefit


Any payment that your employee makes to use the asset reduces the value of the benefit.

The value of the benefit is 5% of the market value of the asset when you first provide it as a benefit. The market value is the amount you would have been able to sell the asset for to a stranger.

The market value cannot be changed if:

  • you provide the asset to a different employee
  • the asset is damaged
  • the asset increases in value.

The same charge applies each year you provide the asset. If you provide the asset for only part of the year, you must base your calculation for that portion of the year.

You must treat all maintenance costs that you pay towards the asset as a taxable benefit. Any payments that your employee makes towards these costs reduces the taxable amount.

You will need to operate Income Tax, PRSI and USC on the taxable benefit. You must report the value of the benefit as part of the director’s gross pay in the period which it is provided.

Free use of lands

Since 2005, the method for calculating the free use of lands is the same as for premises.

Loan of art objects

Art objects may be loaned without paying tax in one specific circumstance. They must be kept in a building of significance where Revenue agree that the public have reasonable access to:

  • view the object
  • the building.