Is my car loan deductible against tax?
Hi,
As a sole trader I use my private car to do 30,000km a year. I’d like to change my car. If I take a loan out to purchase a car is a percentage of the monthly repayments deductible against tax and, if so, is there an upper limit or any drawbacks to doing this from a tax perspective, e.g. benefit in kind?
Many thanks
Robert Downer (Kilkenny)Oct 2020 Filed under: taxation
Expert answer
Hi Robert,
You should discuss this in more depth with a qualified accountant, but our understanding is that you cannot claim back the cost of buying your private car through the business. If the car is owned by the business and used exclusively for business use, that is a very different scenario, but it doesn't sound to me as if that's the case. If you go ahead with a private purchase of a car and the business is paying back the loan for you then we believe it would be seen as income and taxed accordingly.
However, as you can claim back all business-related expenses, you should keep a record of all motoring expenses, such as fuel, tax, insurance, repairs, etc. as you may be able to claim back a large portion of the costs if you use the car for business a large portion of the time.
As I said, it's best you talk this through with your accountant.
Cost to tax a VW Caddy privately?
I bought a 2011 1.6 diesel Volkswagen Caddy; any idea how much I will be taxed if looking to tax privately?
Evan Boyle (Cork)Oct 2020 Filed under: taxation
Expert answer
Hi Evan,
When you go to tax a commercial vehicle privately then it goes on engine size, regardless of its age. That puts the 1.6-litre Caddy at €514 per annum.
Thinking of buying an L200 for private use...
Hi,
I am looking at buying a 2008 Mitsubshi L200; it's registered as a commercial vehicle with the current owner. I will buy as a private customer, so I will have to change the class of the vehicle. Do you know how I would go about this as I cannot get a quote for insurance until the class is changed and don't want to go ahead and buy if the insurance will be through the roof. Also, how much would the tax be yearly?
Thank you
Jack
Jack Kavanagh (Meath)Oct 2020 Filed under: taxation
Expert answer
Hi Jack,
Motor tax for a 2008 Mitsubishi L200 is going to be chunky, because it is powered by a 2.5-litre engine and, when taxing a commercial as a private car, you have to revert to the old by-engine-capacity tax system, so it’s €1,080 a year.
As for getting it changed over, all you have to do is ring up your local motor tax office and tell them what you want to do, and they’ll guide you through the process.
As for insurance, as ever in Ireland it’s think of a number and double it, but there are some specialist van insurers out there (InsureMyVan for example) who might be able to work out a better quote. Shop around is our advice.
How much to tax a 2011 BMW 730d?
How much is it to tax a 2011 BMW 730d?
James Cash (Blanchardstown )Sep 2020 Filed under: taxation
Expert answer
Hi James,
That car should be in Band E for motor tax (171-190g/km), which currently costs €750 per annum.
VRT and tax on imported Toyota Hilux?
Hi,
I am relocating to Ireland (Co Cork) and I have purchased a Toyota Hilux pick up truck, but I am confused as to the rates of VRT. I will be starting a dog kennels business and using the truck for the business. Do I qualify for the €333 tax or is it something different? Car is a 67 plate bought in the UK, VAT paid, 2.2-litre automatic with 21,000 miles on the clock.
I really appreciate your help as it is very confusing on the Revenue website.
Many thanks
Mark
Mark Hartin (Basingstoke)Sep 2020 Filed under: VRT
Expert answer
Hi Mark,
As far as VRT is concerned, pickup trucks generally fall into Category B for tax, which means you’ll pay 13.3 per cent of the Irish Open Market Selling Price, as defined by Revenue. A 2017 Hilux will generally run at about €23,000 on the Irish market, so you’ll be paying in and around €3,000 in VRT.
That €333 rate is the annual rate of motor tax for a commercial vehicle, though be aware that you cannot use the vehicle for any private reasons if you tax it as a commercial.
NCT or CVRT for privately taxed van?
I have bought a new Toyota Proace City 1.5 SWB van and I have taxed it and insured it for private use. The tax cost me €413. My query is, where do I get it tested when it comes up? Is it NCT or CVRT? Which one is it classed for?
Thanking you
Dave
Dave Daly (Co Cork)Sep 2020 Filed under: NCT
Expert answer
Hi Dave,
The van still must get the CVRT, regardless of how it's taxed and used.
Tax cost for 2007 Suzuki Grand Vitara?
What is the annual motor tax for a 2007 Suzuki Grand Vitara 2.0 Automatic?
Many thanks.
Michael
Michael Ruddy (Cootehill )Sep 2020 Filed under: taxation
Expert answer
Hi Michael,
The engine size is 1,995cc, so it sits in the 1,901cc to 2,000cc band, currently costing €710 per annum.
Can I privately tax and insure this Transit?
Taxing a five-seat M-Sport Transit for private use. What will it cost and will insurers cover it?
Paul Barrett (Kerry )Sep 2020 Filed under: commercial vehicle
Expert answer
Hi Paul,
I’m presuming that has the 2.0-litre EcoBlue engine? If so then it’s €710 a year to tax as a private car. As for insurance, yes you can insure it privately, but you might have to shop around a good bit. Some insurers are wary of such policies, but a good broker should be able to help you out.
Is pre-2008 tax for petrol and diesel different?
Hi.
Is there a difference in motor tax between petrol and diesel pre-2008 cars?
Dean Kinsella (Westport)Sep 2020 Filed under: taxation
Expert answer
Hi Dean,
Not specifically. Pre-2008 motor tax is calculated on engine capacity, so there’s no direct distinction between petrol or diesel engines.
How much to tax this Caddy privately?
How much to tax a Volkswagen Caddy Max van (1.9 diesel) privately?
Caroline Carey (Ballina)Sep 2020 Filed under: taxation
Expert answer
Hi Caroline,
For a a 1.9 engine, switching back to the old by-engine-capacity tax system, that’s going to be €673 per year.