Revenue eBrief No. 054/20

31 March 2020

Benefit-in-Kind – Employer-Provided Vehicles

Benefit-in-Kind – Employer-Provided Vehicles

This eBrief is to inform taxpayers and agents of the tax treatment of employer-provided vehicles during the period of the COVID-19 restrictions. Where an employee is in receipt of a vehicle (car or van) provided by his or her employer, the following may apply:

(a) Employer Takes Back Possession of the Vehicle

Where an employer takes back possession of the vehicle and an employee has no access to the vehicle, no BIK shall apply for the period. 

(b) Employer Prohibits Use

Where an employee retains possession of a vehicle, but the employer prohibits the use of the vehicle, no BIK shall apply if the vehicle is not used for private use. Records should be maintained to show that the employer has prohibited its use and no such use has occurred, for example communication from employer, photographic evidence of odometer etc.