As an employee, you are also taxed on any expense allowances (s 117), benefit in kind (s 118), or preferential loans (s 122) you obtain from your employer. A loan is regarded as preferential if the interest rate is less than 5% in the case of a mortgage loan, or 15% in the case of any other loan.

Benefit in kind treatment does not apply to an annual or monthly bus or train pass (s 118(5A)), or to subsidised crèche facilities (s 120A) provided by your employer.

You are not caught for BIK if your employer provides you with a bicycle and associated safety equipment (costing up to €1,000) for travel to work.

Unless received under a Revenue-approved share option scheme, share options received from your employer are subject to income tax at the time the option is exercised (s 128). Gains arising on share options exercised under a Revenue-approved scheme are liable to capital gains tax (25%) instead of income tax.

In the case of an approved savings-related share option scheme, you are also exempt from tax on the interest on the savings (s 519C).

You may receive up to €12,700 worth of shares tax-free through an approved profit sharing scheme (s 510). This is increased to €38,100 for shares held in an employee share ownership trust for a minimum of 10 years (or a lesser period if Revenue so determine). You may also obtain a tax deduction of up to €6,350 for shares bought through an employee share purchase scheme (s 479).

Company cars

You are taxed on “notional pay” based on the cash equivalent of the benefit of use of a company car (s 121). This is calculated as a percentage of the car’s original market value (OMV), inclusive of duty and VAT, depending on your annual business travel and the car’s CO2 emissions category:

Category A: 0g/km up to and including 120g/km,

Category B: More than 120g/km up to and including 140g/km,

Category C: More than 140g/km up to and including 155g/km,

Category D: More than 155g/km up to and including 170g/km,

Category E: More than 170g/km up to and including 190g/km,

Category F: More than 190g/km up to and including 225g/km,

Category G: More than 225g/km.

Where the annual business travel is:

(a) 0 to 24,000 km, the BIK is:

(i) 40% for category F, G,

(ii) 35% for categories D, E, and

(iii) 30% for categories A, B, C,

(b) 24,000 to 32,000 km, the BIK is:

(i) 32% for category F, G,

(ii) 28% for categories D, E, and

(iii) 24% for categories A, B, C,

(c) 32,000, to 40,000 km, the BIK is:

(i) 24% for category F, G,

(ii) 21% for categories D, E, and

(iii) 18% for categories A, B, C,

(d) 40,000 to 48,000 km, the BIK is:

(i) 16% for category F, G,

(ii) 14% for categories D, E, and

(iii) 12% for categories A, B, C,

(e) 48,000 or more km, the BIK is:

(i) 8% for category F, G,

(ii) 7% for categories D, E, and

(iii) 6% for categories A, B, C.

The BIK figure can be further reduced by the amount required to be made good, and actually made good, by you directly to your employer in respect of the car’s running costs.

Civil service travel and subsistence rates

As an alternative to benefit in kind, you may opt to be paid agreed civil service kilometric rates for using your private car for company business. The amount payable depends on the engine capacity (cc) of your car, and the number of kilometres travelled in the year on official business.

Where the annual business travel is:

(a) Up to 6,437 km, the rate per km is:

(i) 39.12c where the engine size is up to 1200cc,

(ii) 46.25c where the engine size is 1201 to 1500cc,

(iii) 59.07c where the engine size is 1501 to 2000cc,

(iv) 70.89c where the engine size is over 2000cc.

(b) over 6,438 km, the rate per km is:

(i) 21.22c where the engine size is up to 1200cc,

(ii) 23.62c where the engine size is 1201 to 1500cc,

(iii) 28.46c where the engine size is 1501 to 2000cc,

(iv) 34.15c where the engine size is over 2000cc.

You may also be paid subsistence at agreed civil service rates, without invoking a benefit in kind charge. Since 5 March 2009, the agreed rates are:

(a) €13.71 in respect of an absence of 5 to 10 hours,

(b) €33.61 in respect of an absence of 10 hours or more,

(c) €107.69 (normal rate) in respect of an overnight stay by an employee on salary equivalent to executive officer or higher executive officer) and €92.11 (reduced rate for extended stays), and €53.87 (detention rate),

(d) €108.99 (normal rate) in respect of an overnight stay by an employee on salary equivalent to assistant principal and higher grades) and €100.48 (reduced rate for extended stays), €54.48 (detention rate).

Schedule F

Schedule F is the heading under which dividend income is charged to tax (s 20).

More

Introduction to Income Tax

Income Tax rates

Income Tax exemptions

Income Tax schedules

Income Tax reliefs

> Capital Allowances

Handling losses

> Double taxation

Self Assessment

Revenue Powers

Withholding taxes

Penalties

Appeals