How to avoid paying VRT

kluivert

How to avoid VRT.

Simply set up a company in the Northern Ireland.

The company buys a car for the director (you) and you drive away in it down here on northen reg plates.

prospect

I think the director would need an address in the north, to which the car also is registered.

So pay STG£300,000 for a house in the north to avoid VRT.....

kluivert

Set up a company in the north.

Under EU regulations companies are allowed free movement of LABOUR and capital.

If you want to employee someone who lives in the south and supply them a car, well then this is fair enough.

Customs here will have something to say about it, but if taken to the European courts are gaurantee you will win your case.

The car is a company car registered to a company registered in the Northern Ireland.

Theres nothing illegal about that, the only thing illegal here is the VRT.

IamMetaldave

That's alot of effort...

kluivert

It is not set up a company is easy enough. You can buy off the shelf companies.

It is a way of avoiding VRT.

Thats good one a stand alone point but you have to paye PRSI on the BIK of a company car.

So the real point is if you have a company or thinking about setting up a company why not set one up in NI and save on the VRT on a new car, then three years down the road, sell the car to the director for Book Value, when the VRT payment is less anyway.

jhegarty

kluivert wrote:

How to avoid VRT.

Simply set up a company in the Northern Ireland.

The company buys a car for the director (you) and you drive away in it down here on northen reg plates.

Does the UK have a BIK tax ?

rambler

kluivert wrote:

Set up a company in the north.

Under EU regulations companies are allowed free movement of LABOUR and capital.

If you want to employee someone who lives in the south and supply them a car, well then this is fair enough.

Customs here will have something to say about it, but if taken to the European courts are gaurantee you will win your case.

The car is a company car registered to a company registered in the Northern Ireland.

Theres nothing illegal about that, the only thing illegal here is the VRT.

This is not true now, a few months ago a Derry employer took a case when he had to let one of his sales people go, he won his case and now a company in the uk has supply there ROI employees with UK reg vehicles.

kluivert

The individual in this case would suffer the BIK tax but if irish resident then would pay PRSI on the BIK.

There is a company car tax in the UK on company cars based on emissions.

calhob_ie

Yup 15% list price plus an amount based on the carbon emissions of the vehicle. Used to be 1perc cent for every gram of of CO2 emitted over 145g/km and I suspect that the CO2 allowed has dropped since then.

You've also got the admin costs of maintaining ltd company in the UK, even if it is a brass plate. U'll need yearly audited accounts for a start.

Definately not practical or economic as a VRT avoidance mechanism, taken on its own that is.

Robbo

My diamond scheme to avoid VRT goes as follows...

Go to the UK and seek employment there. Become employed. Buy a car. Use it. Continue working in the UK and paying tax. Sell the car in the UK and then move back to Ireland.

Ta-DA! You've totally avoided paying VRT using my ingenious plan which I have thought out well enough to share with internet going folk.

Am I missing something here?

gyppo

Ingenious!!!

Henry Ford III

If the car is being used here for more than 6 months it must be reregistered surely?

The drivers Irish licence might be clue to the scam to a razor sharp Customs man

bucks

Robbo wrote:

My diamond scheme to avoid VRT goes as follows...

Go to the UK and seek employment there. Become employed. Buy a car. Use it. Continue working in the UK and paying tax. Sell the car in the UK and then move back to Ireland.

Ta-DA! You've totally avoided paying VRT using my ingenious plan which I have thought out well enough to share with internet going folk.

Am I missing something here?

What would be the point in selling the car in the UK? You will then have to buy another one when you return to Ireland.

You could just buy a car in the UK work their for 6 months and return home with the car and without having to pay VRT, your left with a very good and cheap car.

MrPudding

Robbo wrote:

Am I missing something here?

Yes, why sell the car in England. Stay there for 6 months and then you can bring the car back to Ireland for free.

MrP

calhob_ie

Wont work, you need to have been resident in the UK for the prior 3yrs. The car has to been have been in your name and permanently in the UK for 6months.

MercMad

An even easier way would be to buy a used car !!

kluivert

rambler wrote:

This is not true now, a few months ago a Derry employer took a case when he had to let one of his sales people go, he won his case and now a company in the uk has supply there ROI employees with UK reg vehicles.

Can you explain this a bit better please.

Are you saying that ROI drivers now drive UK Reg cars LEGALLY

Henry Ford III

Nah, because if this is true, the whole VRT system will implode.

Robbo

bucks wrote:

What would be the point in selling the car in the UK? You will then have to buy another one when you return to Ireland.

You could just buy a car in the UK work their for 6 months and return home with the car and without having to pay VRT, your left with a very good and cheap car.

I'm fully aware of this.

However, I was taking the mick out of these "back of a beermat" schemes that keep on cropping up to avoid VRT/get cheaper insurance/beat the penalty points system, usually involving some form of false residency in the UK.

Someone should really make a Gathering card for it...

rambler

kluivert wrote:

Can you explain this a bit better please.

Are you saying that ROI drivers now drive UK Reg cars LEGALLY

Yes if employed by someone in the uk, but as others have already said the employee has to pay BIK, am not 100% on the BIK

fletch

MercMad wrote:

An even easier way would be to buy a used car !!

Care to explain?

dingding

Robbo wrote:

My diamond scheme to avoid VRT goes as follows...

Go to the UK and seek employment there. Become employed. Buy a car. Use it. Continue working in the UK and paying tax. Sell the car in the UK and then move back to Ireland.

Ta-DA! You've totally avoided paying VRT using my ingenious plan which I have thought out well enough to share with internet going folk.

Am I missing something here?

The Car, You sold it.

zen63

From looking at this - you may have a point:

http://www.cartax.co.uk/

Im getting figures of 100stg per year taxable benefits. The accounting side may not be as difficult as expected.

Hotblack Desiato

kluivert wrote:

Set up a company in the north.
Under EU regulations companies are allowed free movement of LABOUR and capital.
If you want to employee someone who lives in the south and supply them a car, well then this is fair enough.

No, it isn't, unless they're resident in the North (doesn't matter where their work is.)

An Irish resident is not permitted to drive a foreign-plated vehicle. End of story. If Customs get wind of it they will seize it.

It's funny, discussing how to break the law on other forums often leads to bans :rolleyes:

Customs here will have something to say about it, but if taken to the European courts are gaurantee you will win your case.

No. The European courts have upheld the right of member states to have VRT-type taxes, with certain caveats, but the right was upheld.
We have dearer cars than most other EU states, BUT we have less PRSI than most (far less than some) and low corporate taxes = JOBS. Cheaper cars will come at the price of either higher taxes (and therefore higher wages) or higer corporation taxes. Either would mean major job losses in a small peripheral open economy like ours.

the only thing illegal here is the VRT.

Dream on. VRT will never be abolished.

bcooley

i live in the south. i have an NI address which my credit card and bank account is linked to, a northern driving licence, and a northern reg car. whats the craic with paying vrt in this case? will i get away with not paying it? please note, i am claiming back to education allowance and VEC grant and go to uni in the south.

Eoin

This is a three year old thread, so am locking it. If you're living in the republic, then I doubt you are exempt.