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Hi Richard,

We asked Eddie Coleman of Conlan Crotty Murray & Company Chartered Accountants for some help on this one and here was his response:

"For a self-employed VAT-registered sole trader the most tax efficient vehicle to purchase for business use would be a small commercial van/SUV.  As the private use element of the vehicle is likely to be minimal VAT could be recovered on such a vehicle in the proportion that business use bears to the total usage of the vehicle.  As there should be a high business usage of the vehicle most of the running costs of the vehicle, such as insurance, fuel, maintenance, etc. could be expensed for tax purposes, again in the proportion that business usage bears to overall use of the vehicle.

If an individual decides that a small commercial vehicle is not appropriate and decides to purchase a car then there would be very limited tax deductibility for VAT purposes.  If a car falling into Category A, B or C is acquired, then 20 per cent of the VAT paid on purchase of the vehicle could be recovered where at least 60 per cent or more of the usage of the car is for business purposes.  There is a potential claw back of the VAT recovered if the car is sold within two years of acquisition.

If the car is acquired by way of a hire purchase agreement or loan finance then the vehicle is treated as owned by the individual.  The capital cost in those instances can be claimed by way of an annual capital allowance write-off equivalent to 12.5 per cent of the cost of the vehicle, restricted to business use as a proportion of overall use of the vehicle.  If a new vehicle is being acquired then it may be possible to do so by way of a finance lease.  In such circumstances it may be possible to write-off the capital cost of the vehicle over a shorter time frame, again subject to business use restriction on the allowable tax deduction."

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Hi Derek,

Well, if the car has been correctly adjusted to meet UK and EU standards  then it should be fine, and for lights there are always aftermarket upgrade options such as better bulbs or extra spot lamps. The IVA test is pretty comprehensive so if it’ll get through that and pass an NCT, then I wouldn’t have any major worries, as long as the car’s history etc all checks out.

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Hi Ray,

If you're buying a new car, then no. There were no changes to the VRT rates announced in the budget so there'll be no difference in rates in January. 

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Hi Peter,

Sadly, there isn’t. Compared to the UK insurance market, the Irish market is still somewhat in the dark ages when it comes to price comparison sites etc. No substitute for legwork, I’m afraid.

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Hi Dhanya,

I'm assuming you mean the mid-2000s version of the Avensis? A good car, really. Beautifully made, pretty close to indestructible in fact and surprisingly good to drive with positive steering and a well-controlled ride quality. Roomy too, but it can be hard to find one now that hasn't been put through dog's abuse or been worked into the ground as a minicab,  so shop around carefully. 

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Hi Martin,

To be fair to the car companies, they would all like to see the end of VRT – there’s little or no protectionist advantage to them (aside from it causing a small, largely ineffective brake on personal imports) and freeing customers from that yoke would make the Irish car industry much more competitive.

As for lobbying against it, that has largely dried up now. Why? Because of the tacit admission that even if VRT could be dismantled, any Irish Government would simply come up with a replacement for it. Even with the Apple tax decision hanging in the air, no Minister for Finance is going to turn off a €4 billion annual tap of combined motoring revenues, of which VRT makes up a a major component.

As for the application of both VRT and VAT to major safety items, you’re quite right – that is a staggering shame, one that should (but probably doesn’t) weigh heavily on the consciences of all in the Department of Finance, the Road Safety Authority and the Society of the Irish Motor Industry. Whether it’s autonomous emergency or a child safety car seat, adding VRT and/or VAT increases the price and makes it less likely that a customer will spend the extra to buy that system, not least because there is no benefit to your insurance premium for doing so.

Mind you, in some ways, Irish customers have only themselves to blame. Back in the early 2000s, when anti-lock brakes were often an option, and not an especially expensive one at that, most buyers shunned them in favour of a sunroof or a better stereo…

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Hi Chris,

You’re going to need something comfortable as well, doing that kind of mileage, so I’d suggest a MINI One D. There are a few around at your budget,  they’re exceptionally frugal, have good seats and are fun to drive into the bargain.

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Hi James,

It's all just down to the way the power steering is set up and yes, all MINIs have quite weighty power steering, designed to feel sporty and make the car feel more agile. 

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Hi Lurdes,

OK, lots to deal with here. Let’s go through it piece by piece. Theoretically, you will always get better value buying second hand than buying new. 'Buy at three, sell at five' (years old) is the rule of thumb to maximise your value and minimise your exposure to depreciation. But, you’ve been burned in the past by unreliable cars (been there, I feel your pain) so I would say that buying new is actually the best thing for you this time around, especially as you want to hold on to the car for an extended period.

Of the two cars you’ve mentioned, the Toyota Verso should be the most reliable. Nothing much wrong with the Ford, but if reliability is your priority then always buy Japanese. Happily, a manual 1.6 diesel Verso seven-seater is just inside your budget, at €29,100 and there is currently a €3,000 trade-in offer on that model, which means you’ll get a lot more for your old Scenic than you would if you traded it in normally.

There is only one hybrid people carrier so far, and that’s the Toyota Prius+, but to be honest, we couldn’t recommend it. For a start, a new one will bust through your €30k budget barrier, but beyond that it’s a disappointing car – far too thirsty unless all of your mileage is done in town at low speeds. The Verso is a far more versatile car.

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Hi Marie,

Theoretically, as you're moving house and you've had the car taxed and insured at your previous address there should be only an administrative fee to pay. But I'm guessing it wasn't your name on the logbook while it was in the UK, which may put a spanner in the works (unless you and your dad have the same name of course...). I think your only option is to talk to someone on the Revenue help desk (and they really are very friendly and helpful) and explain your situation. There might be a loophole through which you can slip.