I believe you also are missing the point that I am not tax domiciles here in the UK. The BIK I am being charged is going to the Irish goverment not the UK govenment. The Irish govenment is not requiring me to pay BIK at I am out of the state.I continue to get paid from the Irish plant in euros.
The car is not used for private use as I am here working. my residance is in Ireland.
Can you please investigate further.
The car is used to get me to work daily and to get me to the airport when I fly back every weekend.Other employees can have use of the car if they need it.
You have referenced... In Ireland section 6 of the Finance Act, 2003 and Sections 16 to 21 of the Social Welfare (Miscellaneous Provisions) Act, 2003
Have you looked at section 10 ?
Company Car not available for full year
Adjustments will be necessary where a car is not available for the full year, e.g. where -
Equally an adjustment will be required where a car is for some other reason not available for private use for part of the tax year, for example, where an employee is working abroad for an extended period. In this case, a car provided to an employee will not be regarded as available for private use for that part of the year in which the employee is outside the State for the purpose of performing the duties of the office or employment, provided the following conditions are met:
Where a car is not available for part of a year, the business kilometric thresholds and the percentage cash equivalents used should be calculated by reference to the following fraction of the normal thresholds and percentages (as listed in the Table in section Calculation of "cash equivalent"). The fraction is(number of days in the tax year car is available for private use) / 365
This fraction may also be expressed as a percentage as follows:(number of days in the tax year car is available for private use) x 100) / 365
The section that is revelant to me is
I didnt mention this to you in the original mail and i dont think you are aware so my appolgies for not making this fact known to you.
I am only here working in the UK from the 3rd week of Jan 2015 to mid december of this year so less than 1 year which is why I feel section 10 is relavant to me.
Your thoughts please.
I have been speakng with Irish Revenue and they do not agree with you that I should have to pay any BIK on the grounds all my mileage in the UK is business mileage. I only pay BIK on personal use of a company vehicle not on business mileage. I can only have one home at any one time and that is in Ireland. I was sent abroad on company business so no private mileage is being incurred it is all business related i.e. I did not go to the UK for personal reasons I went for work reasons at the request of my employer.
They are looking at getting me a ruling on this an I am expecting an update later this afternoon.
I am leaving this conversation open with you until then if that is okay.
I travel home every weekend. I have rented accomadation paid by the company. The company in Ireland is part of a corporation. I was asked to travel to a sister plant to help impliment a project I had put in place in Ireland and then return to my job in Westport. I am in the UK on work not personal terms so private milage is not part of the car here in the UK. I am returning to my Job in Ireland in December.
We will pick this up on Monday ans getting the late flight home.
Irish Revenue have come back saying I should not be charged BIK.
Please see below....
From: Revenue BMW Sligo PAYE [mailto***@******.***] Sent: 29 July 2015 16:38To: Doran, PatrickSubject: FW: Employee Taxation query/PAYE/IC/AH (Ref:15650999)
I refer to our telephone conversation earlier. I realise now that the query submitted by your employer is different to your issue re BIK, see their e mail hereunder.
In relation to Benefit in Kind from 01/01/2004 it is up to the employer to determine if an actual benefit arises and if so there is a charge to PAYE/PRSI & USC here in Ireland, see link to the Employers Guide http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/index.html. I note that the UK employer is processing the payroll from 6th April 2015 so I don’t know the procedure for BIK in the UK is.
As explained to you already there cannot be a charge if a there’s no benefit.
From: Navin-Mealey, Mona Sent: 11 June 2015 11:02To: '*****@******.***'Cc: Costello, Angela; *****, *****Subject: Employee Taxation query
I am writing on behalf of an employee. I called your offices and they requested I put my query by email to yourselves.
Employer Name: MPS Westport Limited
Employer Number:(###) ###-####
Employee Name: Patrick Doran
Employee PPS number:(###) ###-####
Patrick is employed by Mps Westport Limited but in January 2015 he transferred to work for our sister site in the UK for a period of 6 months. He has continued to be paid by Westport during this time.
A decision has now been taken to extend his secondment period in the UK and as he will now go beyond the 183 days in the UK.
The UK have taken tax advice and they will now process his payroll (notionally) with effect from 6 April 2015 and pay UK tax on his behalf. Westport will continue to pay Patrick as normal and deduct all relevant taxes, USC, and NI here in Ireland.
The UK have been advised that they will require an E101 completed to allow them to NOT deduct National Insurance (both ER and EE).
Patrick will then need to complete a self assessment taxation form and claim back the excess taxation paid in the UK at the end of the Irish tax year.
Can you please advise the following:
If you require any further information in order to answer this query please do not hesitate to contact me. My contact details are set out below.
+353 (0) 98 55836
+353 (0) 87 (###) ###-####/p>
Golf Road, Westport, Co. Mayo, Ireland
If the company are going to deduct the BIK then I can submit a Tax Return in Ireland next January for 2015 and on the Form there is a box titled 'Expression of Doubt'
This means there is no messing with the company however there is a cash flow inconvenience for me until then.
There is a Double Taxation Agreement between Ireland and UK and it essentially means I cannot be taxed twice so if you suffer any UK Tax NI again this should be reclaimable
My line of argument which the Tax Office agreed with is that all my mileage in the UK is business mileage. You only pay BIK on personal use of a company vehicle not on business mileage. I can only have one home at any one time and mine is in Ireland. I was sent abroad on company business so no private mileage is being incurred it is all business related i.e. I did not go to the UK for personal reasons you went for work reasons at the request of my employer.