Private Use of a Company Car
The notional pay to which PAYE and PRSI must be applied is determined by reference to the “cash equivalent” of the private use of a company car. To arrive at the cash equivalent the employer must first apply a business kilometric related percentage to the Original Market Value (OMV) of the vehicle supplied (whether the vehicle is owned acquired new or second-hand or leased by the employer).The cash equivalent is then reduced by any amount required to be made good, and actually made good, by the employee directly to the employer in respect of any part of the cost of providing or running the car.
The percentage which is now applied to
the open market value of the company car will be determined
based only on business mileage as follows:
Business Mileage

%
of OMV

24,135 or less30%
24,136 – 32,18024%
32,181 – 40,22518%
40,226 – 48,27012%
Over 48,2716%
Vans
The notional pay to which PAYE and PRSI must be applied is determined by reference to the ‘cash equivalent’ of the private use of the van. The cash equivalent is 5% of the Original Market Value (OMV) of the vehicle supplied. The OMV must be calculated in the same manner as for cars.
Concession:
There will not be a charge to tax in respect of a company van
where all of the four conditions below are met:
– The van provided is essential for the
purposes of the job
– The employer requires that the employee
brings the van home
– Any private use (other than travelling
to and from work is prohibited), and
– Most of the working day (80%) is spent
away from the employer’s premises.
Preferential Loans
Specified rate for home loans from 1 January 20095%
Specified rate for other loans from 1 January 200912.5%
Note: PAYE, PRSI & USC will
be deducted from salary by the employer, in respect of the
taxable value of most benefits.

An employer can provide an employee with a small benefit
to a value not exceeding €250 without applying PAYE and
PRSI to that benefit.

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