Private use of employer-provided vehicles

Other Benefit-in-Kind issues

Chauffeur driven cars

There may be two Benefit-in-Kind (BIK) charges for chauffeur driven cars. A charge for:

  • the provision of the car
  • and
  • expenses incurred in providing a chauffeur.

Use of employer-provided vehicles in the motor industry

If your employee changes their car monthly, special cash equivalents apply. These rules for motor industry employees apply if you are a:

  • motor retailer who sells used cars only
  • franchised motor retailer who sells both new and used cars
  • short term car hire provider
  • or
  • motor and car leasing supplier.

If your employee only uses one car for a period of one month or greater, these special cash equivalents are not available.

The average Open Market Value (OMV) basis currently in operation for motor industry employees will continue to apply. From 2023, the BIK rates for Category C vehicles will apply to the current average OMV bands.

Your employee may choose to have the BIK calculated on the actual OMV of the vehicles available to them during the year. If so, you will have to carry out the necessary calculations. You must retain relevant evidence of the vehicles made available to your employees during the year. The basis used must be applied consistently for the entire year. It is not appropriate to apply a mix of the actual and the alternative simplification basis.