Revenue eBrief No. 093/23

06 April 2023

Employer provided vehicles

Tax and Duty Manual Chapter 2 Part 05-01-01b - Employer Provided Vehicles - has been updated.  The main changes relate to the Finance Bill 2023 measures and include:

  • a new section 4.1.3 is inserted to outline the measures provided for in Finance Bill 2023. It confirms that employers can, if they are in a position to do so, apply the new method of calculation of BIK prior to enactment of the legislation. Furthermore, they should carry out any necessary adjustments to the BIK calculations in respect of prior 2023 pay periods by way of a current period adjustment and not amend prior period payroll submissions.
  • the new rules for the calculation of BIK for 2023 and subsequent years (arising from Finance Act 2019 changes) have been moved from section 10 to section 4.
  • section 6 Electric Vehicles has been updated for the Finance Bill 2023 measures.
  • the examples have been updated to apply the new rules effective from 1 January 2023, to include the additional Finance Bill 2023 measures.