Year-End Review: Benefits-in-Kind (BIK) Valuations
As we approach the close of 2025, employers should take time to review all Benefits-in-Kind (BIK) valuations to ensure accurate payroll reporting and compliance with Revenue guidelines.
Why Review BIK Now? BIK items such as company cars, health insurance, and share-based rewards must be correctly valued and processed through payroll. Revenue expects real-time reporting, but year-end is the ideal opportunity to catch any discrepancies before final submissions.
Key Areas to Assess
Company Vehicles
- Confirm the Original Market Value (OMV) including VAT and VRT.
- Apply the correct CO₂ emissions band and mileage thresholds.
- For electric vehicles, ensure the €10,000 universal relief and €35,000 EV-specific relief are applied for 2025.
Mileage Logs Verify that Business mileage records are complete and accurate. Incorrect mileage can lead to over- or under-Taxation.
Employee Contributions Deduct any employee contributions from the BIK valuation to reduce taxable amounts.
Share Options and RSUs
- Gains exercised or vested in December must be reported via payroll before 31 December.
- RSS1 and ESA returns are due by 31 March 2026 and should align with payroll records.
Other Benefits Health insurance, home chargers for EVs (exempt), and employer-provided meals should be reviewed for compliance.
Need assistance? Our team can help you audit BIK valuations, update payroll, and prepare for 2026 changes.