Private use of employer-provided vehicles



If your employee uses an employer-provided vehicle in a car-pool, they do not have to pay the following on this benefit:

A car-pool exists where:

  • a car is available and used by more than one employee
  • the car must not be regularly used by one employee who prevents others from using it
  • private use of the car by the employee is minimal
  • and
  • the car is not regularly kept overnight at or near the employee’s home.

State employees may have to drive a State-owned car as part of their job. They may keep that car overnight at, or near, their home, if:

  • they are on call outside their normal working hours
  • or
  • the car would otherwise be a ‘pool car’.

If you are unsure if a car is part of a qualifying car pool, please contact your Revenue Office.

Electric vehicles

Certain Benefit-in-Kind (BIK) exemptions and discounts are available where the car made available to your employee is an electric car. Electric cars are cars that get their motive power from electricity only. Hybrid cars do not qualify as electric cars. The treatment applies to both new and used cars.


There was an exemption available where you made an electric car available to your employee for private use in 2019 to 2022. For further information, please see Section 6.2 of TDM Part 05-01-01b. For details of exemptions in relation to electric vans please see Private use of Company Vans.

2023 to 2027 extension of exemption

You may choose to make an electric car available to your employee for private use in the future. Partial relief will apply in respect of electric cars made available between 1 January 2023 and 31 December 2027.

This relief applies by reducing the Original Market Value (OMV) of the vehicle. The reduction which applies is as follows:

  • €35,000 in respect of cars made available during 2023, 2024 and 2025
  • €20,000 in respect of cars made available during 2026
  • and
  • €10,000 in respect of cars made available during 2027.

Where the relief reduces the OMV to nil, a BIK charge will not arise. Any OMV in excess of the reduction is liable to BIK in the usual manner.

For 2023 and 2024, an additional reduction of €10,000 can be applied to the OMV.

For further information, please see Tax and Duty Manual Part 05-01-01b.

Next: Other Benefit-in-Kind issues