Maximising Benefit-in-Kind (BIK) Savings for Electric Company Cars in Ireland
As electric vehicle (EV) adoption continues to accelerate, Irish businesses have a prime opportunity to cut costs while championing sustainable transport. One key incentive that makes EVs even more attractive for employers and employees is the Benefit-in-Kind (BIK) exemption and reliefs available for company cars.
If you’re considering offering EVs to employees, here’s everything you need to know about the latest BIK exemptions and discounts—including how you can save on charging solutions at home and in the workplace.
BIK Exemptions & Relief for Electric Company Cars
What Qualifies as an Electric Car for BIK Exemptions?
- The vehicle must be fully electric, meaning it is powered exclusively by electricity.
- Hybrid vehicles do not qualify for the same level of BIK relief.
- The exemption applies to both new and used fully electric cars.
BIK Relief for EVs: 2023 – 2027
The Irish government has extended BIK relief for employers offering EVs to their employees for private use. This relief reduces the Original Market Value (OMV) of the vehicle, which is the basis for calculating BIK.
Here’s how the OMV reduction applies:
✅ 2023 – 2025: €35,000 OMV reduction
🚀 Bonus Reduction: Until 2025, an additional €10,000 reduction can be applied, offering even greater savings.
✅ 2026: €20,000 OMV reduction
✅ 2027: €10,000 OMV reduction
Where the relief reduces the OMV to nil, a BIK charge will not arise. Any OMV in excess of the reduction is liable to BIK in the usual manner.
BIK Exemptions for EV Charging Solutions
Employers can also benefit from BIK exemptions on EV charging infrastructure, making it easier and more cost-effective to support electric mobility in the workplace.
Workplace Charging Exemption
🔌 No BIK charge applies when an employer provides a charging point on business premises. This applies to all employees and directors—provided the facility is available to everyone.
Home Charging Exemption (From January 2025)
From 1st January 2025, businesses can install home EV chargers for employees without triggering a BIK charge. To qualify:
✔️ The employer retains ownership of the charging unit.
✔️ The employee or director must have private use of a company-provided electric vehicle.
✔️ The charger must be installed at the employee’s primary residence in Ireland.
eStation simplifies home charging reimbursement by accurately calculating energy usage, automating payments to employees, and invoicing employers—eliminating manual expense claims.
Why Act Now?
- Maximise tax savings before the BIK reductions decrease in 2026 and 2027.
- Lower running costs and enhance sustainability for your company fleet.
- Future-proof your business with charging solutions at work and home.
At eStation, we help businesses implement smart EV charging solutions—whether at the office, depot, or employees’ homes.
🚗⚡ Need advice on setting up EV charging for your company? Get in touch today!
#EVCharging #BIKIncentives #SustainableBusiness #eStationIreland
Maximising Benefit-in-Kind (BIK) Savings for Electric Company Cars in Ireland – Source – Revenue.ie