In March 2020, Revenue introduced an amendment on BIK due to the Covid Pandemic, as many employees were not driving for business purposes. The new measure allowed employees with company cars to calculate their monthly BIK due based on the business kilometres driven in January 2020 (the more business kilometres driven the lower the BIK rate). This measure was put in place until December 2020.

Due to new Level 5 restrictions, Revenue have confirmed this reduction will remain in place.

Therefore, under these measures, the following applies.

  • if an employee returns the vehicle to their employer during lockdown and the employee has no use of the vehicle, no BIK will apply for that period.
  • If the employee keeps possession of the vehicle but is not used, no BIK will apply if not used for private use. Employer’s will need to maintain records such as; odometer photographic evidence, to show the vehicle has not been used.
  • If the vehicle is used for small amount of personal use and limited/reduced mileage is undertaken, then BIK can be calculated using January 2020 kilometres driven.
  • If the employee continues to work and travel as normal, BIK usual rules apply.




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