It is presumed that the question relates to benefit-in-kind (BIK) rates and allowances on employer-provided vehicles.
I am advised by Revenue that, due to the unprecedented circumstances of the COVID-19 pandemic, certain concessional treatment was applied by Revenue in relation to the operation of benefit-in-kind (BIK) on employer-provided vehicles. This guidance issued in March 2020 and is summarised below.
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 the vehicle’s use and that no such use has occurred, e.g. communication from employer, photographic evidence of odometer, etc.
(c) Employer Allows Private Use
Where an employee is not prohibited from using a vehicle, but limited or reduced business mileage (if any) is undertaken during the period of the COVID-19 crisis, the amount of business mileage travelled in January 2020 may be used as a base month for the purposes of calculating the amount of BIK due. Personal use of the vehicle must be limited in this scenario and appropriate records should be kept, e.g. business mileage travelled in January 2020, amount of private use, photographic evidence of odometer, etc.
Employee Continues Working
Where an employee continues to undertake business travel as usual in an employer-provided vehicle, the usual BIK rules will apply.
Guidance on the above and other COVID-19 related matters can be found on Revenue’s website, available here.
Finally, the concessional treatment in this instance and in relation to all other matters is kept under regular review by Revenue and updated accordingly.