Quick VRT Question

DArcy

Hi all,

I have a question in relation to VRT exemption. Last year I moved from Louth to Northern Ireland to work. I took up residency in the North in May 2009 and began work in July 2009. My work contract and house lease will both end in July of this year and I intend to move back home once the contract is up.

I bought a car in June 2009 in the North. I later traded this in for another car in September 2009. It originally had English plates which I changed to Northern ones.

I'm wondering exactly how much digging will the Revenue do? Everything is legitimate and above board, I'm aware of the documentation they need and I can provide it all. But the issue is that I tend to spend many of my weekends in ROI, thus my bank account withdrawals and credit card bills will show this. Are they very particular about that aspect? I have receipts for oil,sky,electricity,car servicing which are all legit and relating to the house I rent in N.I. but I'm just afraid that my time spent at home will go against me. My ROI bank accounts and credit card have barely been used since I moved North but my Northern accounts definitely show euro activity.

Can anyone give me their experiences with the Revenue on this matter? I'll be moving home to the Louth to live with my folks again. It looks unlikely that I'll have acquired a job in ROI. How will I prove that I'm moving into my folks house? My ROI bank statements were always addressed to Louth anyway. Any help or insight would be greatly appreciated!!

And on a slightly related note, I'm looking for clarification on car tax. The motor was first registered in London in June 2008. Therefore will I pay car tax based on CO2 emissions when I import it to ROI? Thanks in advance for the help!

colm_mcm

road tax will be emissions based regardless of when in 08 it was registered.

DArcy

Appreciate that, thanks. I figured it was but I didn't wanna be wrong as it's 2200cc and paying based on engine size would've been a scary thought!

colm_mcm

just check the CO2 on the V5 and don't rely on figures on the net etc.

testicle

colm_mcm wrote: »

road tax will be emissions based regardless of when in 08 it was registered.

No it won't. If it was registered prior to 1 July, it will be the lower of Emmissions or CC based motor tax.

colm_mcm

sorry, but you're wrong.

That only applied back in 2008 where road tax on a January-July car could be lowered to the emissions based system upon renewal in July if applicable.

Doesn't apply any more. only applied to cars first reg'd between Jan-Jul 08.

testicle

colm_mcm wrote: »

sorry, but you're wrong.

That only applied back in 2008 where road tax on a January-July car could be lowered to the emissions based system upon renewal in July if applicable.

Doesn't apply any more. only applied to cars first reg'd between Jan-Jul 08.

Sorry, but you're wrong. Those rules also apply to imports first registered (albeit outside the state) between January 1 -> June 30 2008.

I quote from this here document - https://www.motortax.ie/OMT/pdf/co2_emissions_rates_2009_en.pdf

"A private car first registered abroad between 1 January 2008 and 30 June 2008 inclusive and subsequently registered in Ireland will be taxed on whichever is the lesser of the motor tax rates based engine (cc) or CO2 emissions."

neener :P

colm_mcm

I stand corrected. I'm sure I read another version of it elsewhere

Pkiernan

DArcy wrote: »

Hi all,

I have a question in relation to VRT exemption. Last year I moved from Louth to Northern Ireland to work. I took up residency in the North in May 2009 and began work in July 2009. My work contract and house lease will both end in July of this year and I intend to move back home once the contract is up.

I bought a car in June 2009 in the North. I later traded this in for another car in September 2009. It originally had English plates which I changed to Northern ones.

I'm wondering exactly how much digging will the Revenue do? Everything is legitimate and above board, I'm aware of the documentation they need and I can provide it all. But the issue is that I tend to spend many of my weekends in ROI, thus my bank account withdrawals and credit card bills will show this. Are they very particular about that aspect? I have receipts for oil,sky,electricity,car servicing which are all legit and relating to the house I rent in N.I. but I'm just afraid that my time spent at home will go against me. My ROI bank accounts and credit card have barely been used since I moved North but my Northern accounts definitely show euro activity.

Can anyone give me their experiences with the Revenue on this matter? I'll be moving home to the Louth to live with my folks again. It looks unlikely that I'll have acquired a job in ROI. How will I prove that I'm moving into my folks house? My ROI bank statements were always addressed to Louth anyway. Any help or insight would be greatly appreciated!!

And on a slightly related note, I'm looking for clarification on car tax. The motor was first registered in London in June 2008. Therefore will I pay car tax based on CO2 emissions when I import it to ROI? Thanks in advance for the help!

You will need to prove to the Revenue that you were resident outside of the State.

They will have a lot of info about you to hand. If they feel that you were not resident outside the state, then it will become more complicated for you. Time spent in the South can work against you - it will depend how many days per year you were here.

DArcy

Hi Pkiernan,

Thanks for your reply. I'm wondering what kind of information they'll already have? I mean I would spend some weekends in my parents, some with friends in Dublin or in Belfast, etc. But Monday to Friday I work and live up North, so that's a guaranteed 5 days per week. I'm not trying to diddle the system, I'm merely worried that the Revenue will dislike my journeys South and will then enforce VRT on me.

This may sound silly but will they want to see phone records, transactions from all my bank accounts? Do they have the right to go through everything? I know they're just doing their job. I want to be as prepared as I can, and maybe I should start saving for the VRT cost now!!

Theta

The will want things like an NI bank account statment showing your wages being paid in, tax certs and other docs. Maybe even the insurance docs for the car to show its been insured in NI.

Basically they just want to see that you lived up north.

Maybe get a letter from your emplyer but I dont know if that would hold any weight.

DArcy

I have a bank account and credit card in NI. My rent is a standing order, I have Sky bills, elec bills, payments for oil. I get my car serviced in the North and have receipts for this. My wages come from a UK company directly into my NI account. I pay national insurance, I have a GP in the North and I'm even having elective surgery carried out under the NHS in June.

It's just that the odd purchase shows up on my statements for things like diesel in the South, the odd cash withdrawal, etc. I still have a Southern driving licence (just never bothered to change to a Northern one). My parents still live in Louth. I'm worried these factors will go against me. Will I need to produce receipts for nights out North of the border?! What do they mean by proving "day to day living"? I need advice from somebody who has been through the VRO interview!

Theta

DArcy wrote: »

I have a bank account and credit card in NI. My rent is a standing order, I have Sky bills, elec bills, payments for oil. I get my car serviced in the North and have receipts for this. My wages come from a UK company directly into my NI account. I pay national insurance, I have a GP in the North and I'm even having elective surgery carried out under the NHS in June.

It's just that the odd purchase shows up on my statements for things like diesel in the South, the odd cash withdrawal, etc. I still have a Southern driving licence (just never bothered to change to a Northern one). My parents still live in Louth. I'm worried these factors will go against me. Will I need to produce receipts for nights out North of the border?! What do they mean by proving "day to day living"? I need advice from somebody who has been through the VRO interview!

Id say your fine. You have plenty proof there that you have been non resident so I would say you're fine and dandy!

ardmacha

You took up a contact of definite duration for one year outside the State but your family ties remain here. I doubt if you have in fact moved your normal residence outside the State, so there is real doubt if you are entitled to the VRT exemption. In effect you never really intended to live in NI beyond the limited contract.

One year is a cutoff point, a contract of one year is kind of marginal.
http://www.revenue.ie/en/tax/vrt/leaflets/tax-relief-transfer-residence.html

Pkiernan

ardmacha wrote: »

You took up a contact of definite duration for one year outside the State but your family ties remain here. I doubt if you have in fact moved your normal residence outside the State, so there is real doubt if you are entitled to the VRT exemption. In effect you never really intended to live in NI beyond the limited contract.

One year is a cutoff point, a contract of one year is kind of marginal.
http://www.revenue.ie/en/tax/vrt/leaflets/tax-relief-transfer-residence.html

Family ties have no effect on residence status of the OP.

The fact that ones parents live in Ireland does not exclude one from being classed as non resident.

The OP's "Personal" ties may have an effect, however I believe that he can prove to the Revenues satisfaction that he was non resident for 1 year.

What are the Residency Requirements?

For VRT purposes you must have had your normal residence as defined below, outside the State at the time of transfer. In the case of a transfer from outside the EU, you must have had your normal residence outside the EU for a continuous period of at least 12 months prior to transfer.
Normal Residence means:

• the place where you usually lived, for at least 185 days in the year ending on the date of transfer, because of occupational and personal ties
• if you had no occupational ties, the place where you usually lived for at least 185 days in the year ending on the date of transfer, because of personal ties
• if your occupational ties were in a different country from your personal ties then the country of your personal ties is taken as your normal residence if you returned there regularly (i.e. for most of your non-working days).

You do not qualify for relief from VRT

• if you went to live abroad primarily for the purpose of pursuing a course of studies
• if you were working abroad on a task of duration of less than one year and your personal ties remained in the State
• if you were working abroad on a task of duration of more than one year and you have been granted tax relief in respect of another vehicle in the previous 5 years.

corktina

i could be wrong but dont you have to have owned a car for more than 12 months to qualify for the VRT exemption?

macplaxton

corktina wrote: »

i could be wrong but dont you have to have owned a car for more than 12 months to qualify for the VRT exemption?

No you have to be out the country for 12 months, but you only have to own the car (and use it) for a least 6 months.

I submitted an insurance cert to show use. (in the thick wad of paperwork, to claim VRT relief on transfer of residence for my first car - just to save €50 )

What are the requirements relating to the Motor Vehicle?

The following requirements apply to the vehicle:

• it must be your personal property
• it must have been acquired with all the appropriate local taxes paid and these must not have been exempted, or refunded in any way. (There are certain exceptions in the case of diplomats and members of international organisations recognised by the Department of Foreign Affairs. Details are outlined in a separate leaflet available at any Vehicle Registration Office (VRO). Regional VRO Contact Details.
• you must have had possession of and have actually used the vehicle outside the State for at least 6 months before your transfer to Ireland. In the case of relief from import charges, you must have used the vehicle at your former normal place of residence. Any possession and use in the State, even during times when you were living abroad, does not count
• you must bring the vehicle into the State within 12 months of the date of your transfer of residence.

Esel

Pkiernan wrote: »

if your occupational ties were in a different country from your personal ties then the country of your personal ties is taken as your normal residence if you returned there regularly (i.e. for most of your non-working days).

This is the bit that would worry me. They would probably have to ask you to determine that though......

DArcy

Hi again,

Sorry to drag the thread back up but I've only just read some of the last replies. I'm unsure how I can prove where I personal ties lie. My boyfriend lives in Northern Ireland, my friends are in N.I. The only ties I have down South are my parents. My brother lives in the US and that's all the family I have. I haven't returned home on all my non-working days, just the odd one here and there. But how can I prove that to Revenue aside from showing them bank statements for all the transactions which took place in Northern?

The one year work contract...will that be a bone of contention? According to the authorities up here, I've been resident in the UK for four years. I lived in Scotland for three years (university), then came to NI to work. My healthcare has been with the NHS since 2006, my bank accounts have been sterling ones for four years. The only reason I'm even thinking of moving to ROI is because I can't get any work in N.I.

Esel

The university years don't count as residence for Transfer of Residence exemption. Even still, I'd say you'd be fine, given the other circumstances you described.