Expert answer

Hi Alan,

If you buy the car yourself, then there’s no BIK issue to worry about, even if you are using it for work. As for taxing it, if you’re strictly and only using it for work purposes, then it can be taxed as a commercial vehicle and will set you back a mere €333 in motor tax every year. If you are using it for personal use as well, then strictly speaking you’re supposed to tax it as a private car, which means taxing it on the engine capacity, which means an annual motor tax bill of €994. Also, you need to openly declare to your insurer what the vehicle is being used for.

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Hi TJ,

It’s pretty easy, actually. You simply contact your local motor tax office and let them know that you wish to tax the vehicle for private use. They’ll then switch it over to the old by-engine-capacity tax system (€1,080 for a year’s tax for a 2.5-litre) and that’s the job done. You should probably inform your insurers too, although there shouldn’t be any major issues with that.

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Hi Kevin,

It depends on what you mean. Are you bringing a new car into the country and then sending it straight on out again? Theoretically, if the vehicle were in the state for less than seven days, then you would not have to inform Revenue of it being here, and would therefore — yes — be exempt from paying any VRT or VAT on it.

However, to cover yourself, it would be prudent to communicate your plans with Revenue first, and possibly ask for a letter from them, stating that they know of the fact that the car is coming into the country but leaving again before VRT is due.

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Hi Dave,

As long as it’s more than 30 years old, no. The NOx tax is a component of VRT, not a separate tax in itself, so it falls under the VRT exemption for classic cars. 

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Hi John,

In general, we would suggest that you’re spot on with that — you’ll be able to charge the monthly outlay as a routine business expense, but won’t be able to claim for depreciation or maintenance. Having said that, please remember that we’re not tax accountants and so we’d definitely advise checking with your own accountant before making any hard and fast decisions.

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Hi Tomas,

Well, the NOx tax isn’s about the size of the engine, it’s about the NOx emissions, which are not specifically related to the size. It could be worth getting on to the Japanese Ministry of Land, Infrastructure, Transport and Tourism, who may be able to provide you with a specific NOx figure for the car you’re talking about, but otherwise, just be thankful it’s not a diesel — those are subject to a maximum €4,850 extra in NOx tax if you can’t provide an accurate figure. 

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Hi Stasys,

Cheaper motor tax is available for classic cars, but it starts when they are over 30 years old. Read this for more information: Motor Road Tax Prices in Ireland Explained

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Hi Anthony,

Basically, if you’re taxing a commercial vehicle for private use, you revert to the old by-engine-capacity tax system, so for a Navara with a 2.5-litre engine, that’ll cost you €1,080 a year, compared to €333 a year for commercial tax. 

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Hi Paul,

You can, but as for insurance that’s a piece-of-string question — it depends as much on your own personal record and no-claims bonus than on the car. For tax, I’m assuming that this is a 1.8 TDCi model? If so, that’ll set you back €636 for a year’s tax as a private car. 

Expert answer

Hi Ed,

OK, this one takes a bit of deciphering. I’m guessing that you mean you own two Mercedes-Benz models, both using the 2.1-litre diesel four-cylinder engine. I’m also assuming that you’re talking about the cost of motor tax, although the €290 figure is a little odd — did you mis-type when you meant either €280 (for Band B2) or €390 (for Band C)?

The discrepancy could be down to a number of factors. You don’t, for example, state which models you’re talking about — E-Class? C-Class? Coupe? Convertible? Estate? Do both cars have automatic transmissions? Are they both on the same size wheels? Were they both manufactured in the same year? There’s a huge variation in vehicle emissions and, if you’re talking about the gap between Band C and Band D, it takes only a single g/km of CO₂ to tip from one to the other.