What can I expense of my hired van?
Hi,
I am a VAT-registered sole trader courier and am thinking of hiring a van as opposed to buying one. The rental payments through Northgate will be €715.00 per month plus VAT over three years at which time I give the van back, walk away or take another van. In addition to claiming back the VAT on the monthly hire cost, can I set the remaining hire cost against my profits as a deductible expense before working out my personal tax (income tax, USC, PRSI, etc) liabilities? I assume I cannot charge depreciation to the business or avail of any capital allowances as I do not own the van?
JOHN MCCOURT (Cavan)Feb 2020 Filed under: commercial vehicle
Expert answer
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.
How much to tax a Navara for private use?
I have a 2015 Nissan Navara 2.5 crew cab I brought over from England. I’ll probably tax it for private use. Any idea how much that will cost? The tax guide lines are a little confusing as there is many exceptions, so if you can help me figure this out I’d appreciate it.
Thanks
Tony
Anthony McDermott (Letterkenny Co.Donegal)Feb 2020 Filed under: commercial vehicle
Expert answer
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.
Can I privately tax a Ford Transit Connect?
I've bought an 04 Ford Transit Connect T200 for private use only. Can I get private insurance and tax? If so how much will it cost?
Paul O Brien (Slane )Feb 2020 Filed under: commercial vehicle
Expert answer
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.
Is this Audi Q7 from England VAT-free?
Hello,
I’m buying a 3.0 Audi Q7 from England with 27,000 miles on it; is this car VAT-free?
Sean Flynn (Churchtown Dublin )Feb 2020 Filed under: importing
Expert answer
Hi Sean,
As long as it’s not less than six months old, you’ll be VAT free. The rule on VAT is that it’s charged unless the car is more than six months old, or if it has less than 6,000km (or miles equivalent) on the clock. As the Audi you’re looking at has done 27,000 miles, then it’s definitely outside the mileage VAT charge, and with that distance covered, I’d guess it must be older than six months, too.
What paperwork needed to tax my van?
I am buying a van for the first time and the van has no current tax disc, but does have a valid CVRT. I would like to tax the van privately. Can this all be done online and do I still have to provide proof that I will be using it commercially some of the time?
D Barden (Carrick On Shannon)Feb 2020 Filed under: taxation
Expert answer
Hi Deirdre,
No, you should be able to do all that online (although, god knows, a visit to the local motor tax office is still sometimes needed). If you’re taxing it for private use then there’s no need to make any specific declaration that you will be using it for work — that’s taken as read.
How to calculate VAT on a UK import?
If I am buying a new car in the UK and I have to pay Irish VAT, what figure do I use to calculate the VAT? Is it the UK price inclusive or exclusive of VAT converted to Euro?
M Cassidy (Carrick On Shannon)Jan 2020 Filed under: importing
Expert answer
Hi Maura,
God knows, the VRT and VAT system is byzantine at the best of times, but according to the Revenue handbook, the VAT charged on an imported vehicle is based on the price paid, converted into Euro. According to the handbook, under the heading ‘Purchase of new vehicles (New Means of Transport) by a private individual from a person in another country’ it says: "The VRT is calculated on the Open Market Selling Price (OMSP) of a vehicle, rather than the actual purchase price. The value for calculating VAT is the price charged for the vehicle, converted to Euro where necessary."
Do we pay VAT on UK imports after Brexit?
When the UK exits the EU at the end of this month, will VAT on UK car imports have to be paid from then on?
Many thanks, Fin.
Fin Breatnach (Dublin)Jan 2020 Filed under: importing
Expert answer
Hi Fin,
Not just yet, no. When the UK leaves the EU this month it triggers a transition period, which lasts until the end of this year. During that time, the UK will mirror EU rules and regs, until such time as a new free trade deal is signed, or the UK crashes out at the end of the transition period (which looks increasingly likely). After that, all bets are off.
VAT or VRT on N1 to M1 conversion?
I want to purchase a commercial SUV, but I will have to convert the vehicle from an N1 to an M1 category as it will be insured and taxed privately. Am I liable for any VAT or VRT?
Paul Devine (Maynooth)Jan 2020 Filed under: commercial vehicle
Expert answer
Hi Paul,
No. If you purchase it as a commercial vehicle, then you will pay the commercial vehicle VRT rate of 13.3 per cent, whether or not you then go on to convert it. There should be no VAT implication either, as you’ll pay the normal VAT rate at the time of purchase. According to Revenue, if you’re converting to M1 status, you only need to make them aware of it if you’re adding seats to the vehicle, but as with all VAT matters, check with your accountant before leaping.
How to change LCV Kuga back to private use?
What is involved in changing a crew cab Kuga back to a privately taxed vehicle? What do you need to do to enable a private insurance policy to apply?
Thanks
Ken Finn (Laois)Jan 2020 Filed under: commercial vehicle
Expert answer
Hi Ken,
In terms of insurance, you simply need to contact your insurer and tell them that you’re going to tax the vehicle for private, social and pleasure use. There may be an increase in your premium because of this, but it shouldn’t be massive. As for the tax, all you have to do is contact your local motor tax office and inform them that you want to tax the vehicle for private use. That will put you onto the old by-engine-capacity tax system, so for a 2.0-litre TDCi Kuga, that’ll be €710 a year.
I want to use a Mitsubishi L200 privately...
Wanting to buy a Mitsubishi L200 for private use.
1: Do I have to insure it commercially or private?
2: Can I tax it privately or does it have to be taxed commercialy (needing proof of business etc)?
Michael Jones (Co. Dublin )Jan 2020 Filed under: commercial vehicle
Expert answer
Hi Michael,
You only need to show proof of business use if you’re taxing it purely as a commercial vehicle. If you’re taxing it for private use, then all you have to do is let the local motor tax office know, and they’ll shift you to the old by-engine-capacity tax system. As for insurance, just talk to your insurer or broker and they’ll get your sorted.