Hi Patricia,

If the Ranger has a payload of over 1,000kg then it will be treated as a van from Revenue's point of view.

The BIK is then deemed to be 8% of the vehicle's Original Market Value (OMV), i.e. what the vehicle was worth before it was first registered.

Right now, there is a €10,000 reduction on the OMV allowed for the calculation of BIK - though this allowance is reducing from 2027 on.

So for example, if the Ranger is €50,000 new, the reduced OMV is €40,000 and the benefit is deemed to be 8% of that - i.e €3,200. You'd then be taxed on that benefit according to your tax bracket. So if you pay 40% tax, you'd have to pay €1,280 for this year. Note that is likely to change next year and the same vehicle would end up costing more in BIK tax.

There are cases in which no BIK applies and likewise, make sure the Ranger in question is treated as a van.