Expert answer

Hi Larry,

You're not the only one confused, believe me!

Looking at the Toyota Ireland website, we can see that that WLTP CO₂ emissions rating for that car is 131g/km. That means it will fit into the new 131 - 140g/km band, costing €210 per annum.

Read our Motor Road Tax Prices in Ireland Explained feature to see all the tax bands and schemes.

Expert answer

Hi Terence,

It's not entirely clear as yet, as Audi has not published its new pricing, and doesn't appear to have changed its online pricing since the VAT reduction last month. 

Taking the Audi A6 40 TDI S line S tronic as an example: it's listed as €56,065 as of Jan 2020.

The NOx figure for that car is 41.9mg/km, so the NOx levy right now, within that price, is €5 x 41.9 = €209.

So, the price of the car including VAT and VRT, but without the NOx levy is €55,855.

Looking at our review of the Audi A6 40 TDI from 2018, the NEDC CO₂ rating appears to be 117g/km, which would mean 17 per cent VRT on the old system.

So, the VRT was €55,855 x 0.17 = €9,495, which makes the price of the car including VAT at €46,360.

Assuming that's at the 23 per cent VAT rate, it's €37,691 before VAT, or €45,606 at the current 21 per cent VAT rate.

So now we have the core cost of the car and can work on a 2021 price estimate.

We need the WLTP CO₂ rating. It varies according to equipment, so let's take the worst case of 158g/km. That places it in the new Band 18 for VRT (see our How Much VRT is Paid in Ireland? feature), at a rate of 26 per cent.

So the estimated cost of the car including VAT and VRT is €45,606 ÷ 0.74 = €61,630

The NOx levy calculation has changed a little as well. It works out as €238 for this car.

Hence, the estimated total retail cost of the car is €61,868 as of 2021.

With a CO₂ rating of 158g/km as used in these calculations, the annual motor tax (see our Motor Road Tax Prices in Ireland Explained feature) will be €280.

If I used the minimum CO₂ rating for this model of 145g/km, incidentally, the retail cost comes out as €56,891 so the final price is highly sensitive to that, while the motor tax would drop just €10 per year to €270.

Disclaimer: All of these figures should be taken as estimates only. We have rounded off to Euros throughout and who knows how Audi will adjust its pricing to suit the market rather than just calculate the new tax?

Expert answer

Hi Maeve,

Assuming your car is taxed according to its engine size, then there will be no changes to its taxation from January 2021. If it's taxed according to its CO₂ emissions, it's possible that there will be a small increase, but nothing drastic. We don't have the full details of the new motor tax scheme as yet.

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Hi Gary,

If our data is correct, that should be in Band B2 for tax because of its 139g/km emissions. That means €280 per annum.

Things might change in tomorrow's Budget of course...

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.

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.

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.

Expert answer

Hi James,

That car should be in Band E for motor tax (171-190g/km), which currently costs €750 per annum.

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.

Expert answer

Hi Dave,

The van still must get the CVRT, regardless of how it's taxed and used.