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Commercial tax or not.

  • 18-04-2011 9:16pm
    #1
    Registered Users, Registered Users 2 Posts: 5,706 ✭✭✭


    Sorry if this has been asked a billion times but i did look through a few threads using the search tool but failed to find a satisfactory answer.

    Im thinking of buying a small van (kangoo/berlingo/partner) & as i would be a private user is it legal for me to tax & insure the vehicle as a commercial vehicle?

    Whats the point in getting a van if i am subject to the same level of expense of insuring & taxing a private vehicle?

    Thanks.


Comments

  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    Sorry if this has been asked a billion times but i did look through a few threads using the search tool but failed to find a satisfactory answer.

    Im thinking of buying a small van (kangoo/berlingo/partner) & as i would be a private user is it legal for me to tax & insure the vehicle as a commercial vehicle?

    Whats the point in getting a van if i am subject to the same level of expense of insuring & taxing a private vehicle?

    Thanks.

    If you are going to use it only for private purposes, you can't tax it as a commercial.


  • Closed Accounts Posts: 17 Tzkaka


    CiniO wrote: »
    If you are going to use it only for private purposes, you can't tax it as a commercial.

    So what if it is your only vehicle does that mean you cannot use it to drive to a holiday destination, bring your kids to school, shopping at the weekend, football training? It is an absolute joke if you ask me... Wouldn't all those things be personal use? Does every commercial driver in the country now have to buy a second car?


  • Registered Users, Registered Users 2 Posts: 3,834 ✭✭✭Welease


    Tzkaka wrote: »
    So what if it is your only vehicle does that mean you cannot use it to drive to a holiday destination, bring your kids to school, shopping at the weekend, football training? It is an absolute joke if you ask me... Wouldn't all those things be personal use? Does every commercial driver in the country now have to buy a second car?

    Are you asking for the law or what people do? Because they are not the same....


  • Closed Accounts Posts: 17 Tzkaka


    Welease wrote: »
    Are you asking for the law or what people do? Because they are not the same....

    So what is the point in having law then? Explain, why get people to declare lawfully that they will only use it for commercial use and not domestic or pleasure when it simply is not the case? I am fully aware believe it or not my friend that they are not the same thing.. What does the law say it will do when it catches Daddy bringing the kids to school on a day off in his commercial? A fine? Penalty points? Ban?...


  • Registered Users, Registered Users 2 Posts: 1,191 ✭✭✭_Conrad_


    Whats the point in getting a van if i am subject to the same level of expense of insuring & taxing a private vehicle?

    Thanks.



    There is none, unless you would particularly like a small van and were prepared to either tax it at the same cost as a 1.9 litre car, or risk the punishment for driving it while not using the correct tax class (which many people do).

    A friend of mine drives a small van because he has dogs and it's handy for transporting them, it's also very easy on the pocket on a day to day basis due to the fuel economy, particularly when not loaded, and it's almost never loaded to anywhere near full capacity. Just a handy little vehicle for tippin around day to day, he's single and doesn't need extra seats so the lack of rear seats and windows doesnt matter. Also with it being a 1.3, private tax is pretty cheap on it anyway.


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  • Registered Users, Registered Users 2 Posts: 3,834 ✭✭✭Welease


    Tzkaka wrote: »
    So what is the point in having law then? Explain, why get people to declare lawfully that they will only use it for commercial use and not domestic or pleasure when it simply is not the case?

    Because they are not making a truthful declaration?
    Tzkaka wrote: »
    I am fully aware believe it or not my friend that they are not the same thing.. What does the law say it will do when it catches Daddy bringing the kids to school on a day off in his commercial? A fine? Penalty points? Ban?...

    You could be prosecuted, but like a lot of low impact laws being broken a Garda is unlikely to do so..

    Again.. the rules states you cannot use it for SD&P.. but people do.. simple as..


  • Registered Users, Registered Users 2 Posts: 488 ✭✭theblueirish


    Like the OP i am also thinking of buying a van. I am thinking of importing it in from NI.
    Can someone tell me the difference in price of taxing it commercially and taxing it private.

    Thanks


  • Registered Users, Registered Users 2 Posts: 3,834 ✭✭✭Welease


    Like the OP i am also thinking of buying a van. I am thinking of importing it in from NI.
    Can someone tell me the difference in price of taxing it commercially and taxing it private.

    Thanks


    The difference will depend on the type of van, so you would need to check on the motor tax website. For my L200 its €288 commercial tax, or about €950 private (based on a 2005 2.5L engine). For commercial it would also need a yearly DOE test as opposed to a 2 yearly NCT check.


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    Tzkaka wrote: »
    So what if it is your only vehicle does that mean you cannot use it to drive to a holiday destination, bring your kids to school, shopping at the weekend, football training? It is an absolute joke if you ask me... Wouldn't all those things be personal use? Does every commercial driver in the country now have to buy a second car?

    I think you didn't read my reply properly
    If you are going to use it only for private purposes, you can't tax it as a commercial.

    If you buy a van just for private use, then obviously you have to tax is privately.

    If you have a van which you use for work, and it's taxed commercially, there's nothing stopping you from using it for private purposes as well.


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    Welease wrote: »
    Are you asking for the law or what people do? Because they are not the same....


    Fortunately they are the same.
    There isn't any law which would prohibit using a commercially taxed van used normally for commercial purposes, from using it for private purposes from time to time.

    If you think I'm not right, and there is such law, please quote it here.


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  • Registered Users, Registered Users 2 Posts: 3,834 ✭✭✭Welease


    CiniO wrote: »
    Fortunately they are the same.
    There isn't any law which would prohibit using a commercially taxed van used normally for commercial purposes, from using it for private purposes from time to time.

    If you think I'm not right, and there is such law, please quote it here.

    On the RF111A form required for Commercial Taxation, you declare....

    "that vehicle registration number xxxxxxxxx will be used only as a goods carrying vehicle in the course of my business/trade and will not be used at any time for social, domestic or pleasure purposes"

    Note... the bolding and underlining is not mine.. its on the original document..
    http://www.wicklow.ie/Apps/WicklowBeta/Motortax/Forms/RF111A%20Goods%20Only%20Declaration.pdf
    That form must be signed in the presence of a Garda..

    The taxation form RF100 must be included when applying for commercial tax.. It clearly states on that document.. "Warning False Declarations: Any person making a false declaration " yadda yadda "is liable to heavy penalties"
    https://www.motortax.ie/OMT/pdf/RF100A_en.pdf

    I'm going to assume that falsely declaring the usage in front of a Garda for taxation purposes (and paying the wrong tax) is illegal and as stated could be liable for heavy penalties.


  • Closed Accounts Posts: 17 Tzkaka


    Welease wrote: »
    On the RF111A form required for Commercial Taxation, you declare....

    "that vehicle registration number xxxxxxxxx will be used only as a goods carrying vehicle in the course of my business/trade and will not be used at any time for social, domestic or pleasure purposes"

    Note... the bolding and underlining is not mine.. its on the original document..
    http://www.wicklow.ie/Apps/WicklowBeta/Motortax/Forms/RF111A%20Goods%20Only%20Declaration.pdf
    That form must be signed in the presence of a Garda..

    The taxation form RF100 must be included when applying for commercial tax.. It clearly states on that document.. "Warning False Declarations: Any person making a false declaration " yadda yadda "is liable to heavy penalties"
    https://www.motortax.ie/OMT/pdf/RF100A_en.pdf

    I'm going to assume that falsely declaring the usage in front of a Garda for taxation purposes (and paying the wrong tax) is illegal and as stated could be liable for heavy penalties.

    It's a dirty one all in all... My van is on the books as a 1.9 but is actually 1.6 on recon engine... time to get that changed too!


  • Closed Accounts Posts: 17 Tzkaka


    Tzkaka wrote: »
    It's a dirty one all in all... My van is on the books as a 1.9 but is actually 1.6 on recon engine... time to get that changed too!

    Basically, if you try to buy economically and in a van because it suits you better ya get screwed on tax, if ya go with small petrol engine you pay lower tax but get screwed on the cost of fuel.. Time to buy that push bike lads..


  • Registered Users, Registered Users 2 Posts: 62 ✭✭Ray Ray


    Tzkaka wrote: »
    So what if it is your only vehicle does that mean you cannot use it to drive to a holiday destination, bring your kids to school, shopping at the weekend, football training? It is an absolute joke if you ask me... Wouldn't all those things be personal use? Does every commercial driver in the country now have to buy a second car?

    his talking about a van not a mini bus .think you mis read the original op:eek:


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    Welease wrote: »
    On the RF111A form required for Commercial Taxation, you declare....

    "that vehicle registration number xxxxxxxxx will be used only as a goods carrying vehicle in the course of my business/trade and will not be used at any time for social, domestic or pleasure purposes"

    Note... the bolding and underlining is not mine.. its on the original document..
    http://www.wicklow.ie/Apps/WicklowBeta/Motortax/Forms/RF111A%20Goods%20Only%20Declaration.pdf
    That form must be signed in the presence of a Garda..

    The taxation form RF100 must be included when applying for commercial tax.. It clearly states on that document.. "Warning False Declarations: Any person making a false declaration " yadda yadda "is liable to heavy penalties"
    https://www.motortax.ie/OMT/pdf/RF100A_en.pdf

    I'm going to assume that falsely declaring the usage in front of a Garda for taxation purposes (and paying the wrong tax) is illegal and as stated could be liable for heavy penalties.

    I absolutely agree with you here.
    Making false declarations, especially in front of garda is a very serious offence.

    The problem lies somewhere else though.

    I asked if someone could quote a Law prohibiting usage of commercially taxed vehicles for private use from time to time.

    What you linked here, are declarations which motor tax offices might require - but not Law.

    I think that by asking people to fill in these declarations, motor tax offices are breaking the Law, as there isn't any Law with such prohibition.

    I was quoting a appropriate SI on this forum few weeks ago, and it's pretty clear that there is nothing stopping you to use a commercially taxed van for private purposes, assuming it's main use is for commercial purposes.

    I actually don't have a van and I'm not planning having one in nearest future, but if I was in a situation that motor tax office would ask me to fill in such declaration, I would ask them to explain which Law would require me to fill it in. If they couldn't answer, and persist on requesting declarationi to be filled in, the case would probably end up in court, where I assume I could win the case, because of lack of Law which would require me to fill in such declaration.


  • Registered Users, Registered Users 2 Posts: 3,834 ✭✭✭Welease


    CiniO wrote: »
    I absolutely agree with you here.
    Making false declarations, especially in front of garda is a very serious offence.

    The problem lies somewhere else though.

    I asked if someone could quote a Law prohibiting usage of commercially taxed vehicles for private use from time to time.

    What you linked here, are declarations which motor tax offices might require - but not Law.

    I think that by asking people to fill in these declarations, motor tax offices are breaking the Law, as there isn't any Law with such prohibition.

    I was quoting a appropriate SI on this forum few weeks ago, and it's pretty clear that there is nothing stopping you to use a commercially taxed van for private purposes, assuming it's main use is for commercial purposes.

    I actually don't have a van and I'm not planning having one in nearest future, but if I was in a situation that motor tax office would ask me to fill in such declaration, I would ask them to explain which Law would require me to fill it in. If they couldn't answer, and persist on requesting declarationi to be filled in, the case would probably end up in court, where I assume I could win the case, because of lack of Law which would require me to fill in such declaration.

    Sorry but that doesn't tally.. :)

    You cannot state "
    CiniO wrote: »
    Making false declarations, especially in front of garda is a very serious offence.
    CiniO wrote: »
    I was quoting a appropriate SI on this forum few weeks ago, and it's pretty clear that there is nothing stopping you to use a commercially taxed van for private purposes, assuming it's main use is for commercial purposes.

    The fact that you have to make a false declaration to a Garda (which you admit is a serious offense) in order to get the vehicle taxed is exactly what is stopping you from using it for private purposes legally..

    Just because road traffic or revenue acts don't specifically call out a position on commercial motor tax doesn't make it lawful to mis-declare particulars to the Garda as part of the process. And I would assume that's where it becomes illegal (and therefore punishable as per the RF100a) to use the vehicle for private use (i.e. falsely declare), not because of any omissions in other areas of law.


    Edit - Meant to add
    CiniO wrote: »
    I think that by asking people to fill in these declarations, motor tax offices are breaking the Law, as there isn't any Law with such prohibition.

    I think this is the source of your confusion (although as always, I am happy to be corrected :)).. :) The law doesn't dictate the process, it would dictate the requirement for motor tax.. The process how you get that motor tax would never have nor would it require legislation, so therefore no law needs to exist. One could reasonably assume you could and would be found guilty if it went to court. The law doesn't state I need to pay X amount for my tax either.. but I cannot claim it for free because of the lack of specific legislation.

    As an analogy, I am required by law to notify revenue of my taxable income. I cannot ring them and shout a number down the phone at them and hang up because the law doesn't specifically state which forms and boxes i need to fill in.. If I did, I would be prosecuted for not filing a tax return and it's a given I would be found guilty. It would be fair to assume that the motor tax situation would not be largely different (even ignoring that fact you would already knowingly have made a false declaration to the Garda/Motor Tax Office).


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    I think you greatly misunderstood my post.

    Welease wrote: »
    Sorry but that doesn't tally.. :)

    You cannot state "



    The fact that you have to make a false declaration to a Garda (which you admit is a serious offense) in order to get the vehicle taxed is exactly what is stopping you from using it for private purposes legally..

    Just because road traffic or revenue acts don't specifically call out a position on commercial motor tax doesn't make it lawful to mis-declare particulars to the Garda as part of the process. And I would assume that's where it becomes illegal (and therefore punishable as per the RF100a) to use the vehicle for private use (i.e. falsely declare), not because of any omissions in other areas of law.





    First of all I was absolutely not saying, that it was all right to sign the declaration, and then use the car for private, as there is no Law prohibiting it. If someone signs a declaration, then he has to adhere to what he declared.

    I think this is the source of your confusion (although as always, I am happy to be corrected smile.gif).. smile.gif The law doesn't dictate the process, it would dictate the requirement for motor tax.. The process how you get that motor tax would never have nor would it require legislation, so therefore no law needs to exist. One could reasonably assume you could and would be found guilty if it went to court. The law doesn't state I need to pay X amount for my tax either.. but I cannot claim it for free because of the lack of specific legislation.

    You are a bit wrong here.
    The Law does dictate the process and requirements for motor tax.
    And yes - the Law does state the you need to pay X amount of motortax for certain kind of vehicle. It's all in legislation. So there is no doubt about how much motor tax have to be paid. To be honest the law is quite precise in here.
    Take a look: http://www.irishstatutebook.ie/2008/en/act/pub/0024/print.html

    As an analogy, I am required by law to notify revenue of my taxable income. I cannot ring them and shout a number down the phone at them and hang up because the law doesn't specifically state which forms and boxes i need to fill in.. If I did, I would be prosecuted for not filing a tax return and it's a given I would be found guilty. It would be fair to assume that the motor tax situation would not be largely different (even ignoring that fact you would already knowingly have made a false declaration to the Garda/Motor Tax Office).

    I'm not very familiar with revenue Law, but I'm sure there is a Law stating exactly which forms you have to fill in, and that this forms are provided as attachements to this Law.


    Conclusion.

    I never said it's ok to sign declaration and use a vehicle for private purposes.

    Only what I said, what anyone should do is to refuse to sign above declaration, and request a application for motortax to be processed without above declaration, as there is no ground in legislation to be requested to declare the above.


  • Registered Users, Registered Users 2 Posts: 3,834 ✭✭✭Welease


    CiniO wrote: »
    Conclusion.

    I never said it's ok to sign declaration and use a vehicle for private purposes.

    Only what I said, what anyone should do is to refuse to sign above declaration, and request a application for motortax to be processed without above declaration, as there is no ground in legislation to be requested to declare the above.

    My response was based on your initial response of
    CiniO wrote: »
    If you have a van which you use for work, and it's taxed commercially, there's nothing stopping you from using it for private purposes as well.

    Which i would argue is still untrue, as the acts you listed state

    "the vehicle is used in a condition or manner or for a purpose which would, if it was used solely in that condition or manner or for that purpose, render it chargeable with duty at a rate higher than that at which duty has been paid".... "duty shall become and be chargeable on the vehicle at the higher rate"
    http://www.irishstatutebook.ie/1952/en/act/pub/0024/print.html#sec1

    So even if you did manage to get a commercial tax certificate by winning your court case, as soon as you use it for SD&P, you are now incorrectly taxed and liable for Private taxation.. so there is still something stopping you from using it :)


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    Welease wrote: »
    My response was based on your initial response of



    Which i would argue is still untrue, as the acts you listed state

    "the vehicle is used in a condition or manner or for a purpose which would, if it was used solely in that condition or manner or for that purpose, render it chargeable with duty at a rate higher than that at which duty has been paid".... "duty shall become and be chargeable on the vehicle at the higher rate"
    http://www.irishstatutebook.ie/1952/en/act/pub/0024/print.html#sec1

    So even if you did manage to get a commercial tax certificate by winning your court case, as soon as you use it for SD&P, you are now incorrectly taxed and liable for Private taxation.. so there is still something stopping you from using it :)


    I wasn't aware of that.
    It pretty much proves that I was wrong.
    It also explains, why trucks used both for business and private use, have to be taxed as commercial.


  • Closed Accounts Posts: 904 ✭✭✭yourpics


    Buy an Opel Combo or Fiat Doblo 1.3 tdi engine so 320 euro tax


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