Commercial Tax on a private vehicle

bijapos

Tried to search for this but got frustrated.

Friend wants to buy a 06 or 07 VW Transporter van, but she will be using it as a private vehicle not for any business, she works as a teacher, she would just prefer one to a car.
Question is: Will she still pay the annual tax of €288 on it as a commercial in years to come or will she have to tax it as a private vehicle (€580 to €930 depending on engine size).

Thanks

Welease

bijapos wrote: »

Tried to search for this but got frustrated.

Friend wants to buy a 06 or 07 VW Transporter van, but she will be using it as a private vehicle not for any business, she works as a teacher, she would just prefer one to a car.
Question is: Will she still pay the annual tax of €288 on it as a commercial in years to come or will she have to tax it as a private vehicle (€580 to €930 depending on engine size).

Thanks

Just saw this post while browsing and noticed you hadn't had a response..

Best bet is to ring the vehicle taxation lot and ask them, but if it helps, I own a Mitsubishi L200 pickup commercial vehicle which I use only as a private vehicle (not business related), and I only pay the 288 commercial rate for taxation (but obviously have to do a yearly DOE test on it, instead of the 2 yearly (?) vrt). So i would imagine the situation would be the same for her.

bijapos

Thanks for the reply Welease. If you don't mind me asking, are you VAT registered or self-employed? This is what I'm trying to find out, if its possible for someone like her with no business to have commercial tax.

mikewest

Will she be using it as a goods vehicle i.e. for carrying goods of her own or goods for somebody else. If she only uses it for carrying a few bags of coal or some such or in the carrying out of any part time business then it is a goods vehicle and as it is not a passenger vehicle then she can tax it as a GOODS vehicle.

You do not have to have a registered company to run a goods vehicle, how is any self employed plumber etc., even a part time one supposed to have a van so?

Edit: the local tax office will give you the run around and try to force you to tax it privately but if you stand your ground they will tax it as a goods vehicle.

2 Espressi

Yes. My wife owns a VW caddy, all she had to do was get it weighed after buying it and get an annual DOE test. She's an archaeologist, but isn't registered as a business/sole trader.

Insurance is higher than on an equivalent Golf, get your friend to check around for a few quotes before she dives in.

R.O.R

mikewest wrote: »

Will she be using it as a goods vehicle i.e. for carrying goods of her own or goods for somebody else. If she only uses it for carrying a few bags of coal or some such or in the carrying out of any part time business then it is a goods vehicle and as it is not a passenger vehicle then she can tax it as a GOODS vehicle.

You do not have to have a registered company to run a goods vehicle, how is any self employed plumber etc., even a part time one supposed to have a van so?

Edit: the local tax office will give you the run around and try to force you to tax it privately but if you stand your ground they will tax it as a goods vehicle.

To tax something as a GOODS vehicle, it is for use solely for carrying GOODS. Any private usage of the vehicle MAY result in the vehicle being impounded and PRIVATE back tax being charged before the vehicle is released.

It's a widely ignored law, but it's a law all the same.

Marlow

The tax is the same, if you drive it commercially or private.

Tax changes, when you stick seats in the back, you have to pay VRT. Then you suddenly need NCT (instead of DOE) and the tax goes up.

As long as it's registered as a commercial van, the tax stays at whatever it is, no matter the use being private or commercial.

/M

Welease

bijapos wrote: »

Thanks for the reply Welease. If you don't mind me asking, are you VAT registered or self-employed? This is what I'm trying to find out, if its possible for someone like her with no business to have commercial tax.

Hi,

No I am not VAT registered or self-employed.. the vehicle is not used for any commercial purposes either.

BTW.. I lived in the UK for 20 years and purchased the vehicle over there.. When I moved back I had to get it re-registered etc.. so it's all above board and it was the DOE that gave me the new Irish reg plate and tax details (incl. costs). I'd imagine your friends situation would be the same..

Edit - Just saw some of the other posts.. In my case (and I know you are not saying I or anyone was breaking a law ) it was the DOE who decided the tax that needed to be paid, and they knew it was a private vehicle.. I had to get it weighed and a new cert, but thats all that was required.
Regarding insurance, yes you need to be careful. Some insurers will only offer you commercial insurance which is a lot more expensive.. Some won't insure you... You need to shop around and make sure they know it's private insurance you need.

Hope this helps.