Private use of company cars

Exemptions

Car-pools

If your employee uses a company car in a car-pool they do not have to pay Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on this benefit.

A car-pool exists where:

  • a car is available and used by more than one employee
  • any private use of the car by the employee must be incidental to business use
  • the car is not regularly be kept overnight at or near the home of your employee.

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
  • 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 local Revenue Office.

Electric Vehicles

If your employee receives an electric company car, no charge to tax will arise in respect of that private use.

This exemption is for cars that get their motive power from electricity only. It is not available for hybrid engine cars.

This exemption is in force from 1 January 2018 and applies to both new and used electric company cars.

Next: Other BIK issues