Where an employee has a car provided by his or her employer and limited or reduced business mileage was undertaken during the period of the COVID-19 crisis, Revenue granted a concession that allowed the amount of business mileage travelled in January 2020 to be used as a base month for the purpose of calculating the amount of BlK due.
Accordingly, the percentage applied in the calculation of the cash equivalent, which is based on annualised business mileage, could be actual business mileage for January 2020, for the period of the COVID-19 restrictions, which included some of 2020, all of 2021 and 2022 up to 1 June 2022.
Please note that the concession has been withdrawn with effect from 1 June 2022, so the percentage to be applied from that date should be based on actual mileage.
Call your tax contact in Keogh Ryan Tierney if you have any queries.
Keogh Ryan Tierney