Taxing a car commercially?

Hi folks,

I should pre-face this by saying that I'm not really clued into cars at all, or the workings of the tax system. I understand that pre-2008 vehicles are taxed on engine size. That's where my knowledge starts and ends, to be honest.

I had a conversation with someone today who drove a lovely jeep. I passed comment that the tax must be a killer on it (it was a 3ltr 2004 jeep... Can't recall the make, to be honest, but it's not relevant). He said he had it taxed commercially so it wasn't too bad, at all.

That was as in-depth as it went.


So I was wondering, is it difficult to tax something commercially, and is there any real savings to be made from doing so?

I don't really drive for pleasure that much (errands and work take up 90% of my vehicle time) and I'm a self-employed photographer, so I'm thinking it might not be too difficult to get commercial tax if I want it? (and if I'm ever pulled by the Gardaí I could simply say I'm coming home from a photo job as I never leave the house without a camera anyway... although chances are I will be coming home from work anyway, so...).


I did a search and got a fair 'ould bit of conflicting advice. Motor Tax site doesn't really make things any easier to understand.


At the moment I'm driving my first car, a 1.4 Focus, but I plan to swap over to something bigger in the near future (looking at a RAV4, as 2ltr engines don't seem overly bad on road tax per year).

Would like to be able to expand my options to 3ltr jeeps and SUVs if I could (i should be honest and say I've no need or use for anything so big, but I just want something big and fun before I settle into driving hatchbacks for the rest of my life).


Would appreciate anyone with any idea offering to advise. I can't even find commercial tax rates online!

jimgoose

See here under "Goods/commercial vehicles": http://www.citizensinformation.ie/en/travel_and_recreation/motoring_1/motor_tax_and_insurance/motor_tax_rates.html#ld1a9a

And bear in mind the the Powers That Be are doggie-wide to all sorts of oul' shenanigans that used to go on in the old days, so be careful.

R.O.R

Commercial road tax is €333 a year for all commercial vehicles (up to a certain weight, all "jeeps" will fall under that).

As a self employed photographer, you shouldn't have any issues taxing a commercial vehicle. Might be easier if you are VAT registered, but I believe that isn't really required.

Nice big 4x4 with some classy branding to promote the business could look very good.

jimgoose

jimgoose wrote: »

See here under "Goods/commercial vehicles": http://www.citizensinformation.ie/en/travel_and_recreation/motoring_1/motor_tax_and_insurance/motor_tax_rates.html#ld1a9a

And bear in mind the the Powers That Be are doggie-wide to all sorts of oul' shenanigans that used to go on in the old days, so be careful.

Yeah, I've heard they're pulling people up on it, alright. I know a guy that drives a small van and was stopped by Gardaí at a checkpoint. Asked where he was going and he said he was off to do some shopping (obviously wasn't on his mind at all).

He was given a harsh 'don't do it again' warning, but was let on his way. He still drives it all the time and doesn't get really any hassle.


Being a photographer is good though as it's incredibly open-ended. Driving at 2am? Just off to take some landscape photos I've been commissioned for Driving at 2pm? Just finished up a family portrait session. Halfway across the country? Sure I've a wedding on a couple of miles away :pac:

... and so on. Thankfully most of those excuses would be true as I'd imagine the joy of driving a big a jeep would quickly deteriorate when it starts guzzling up diesel like it's no ones business leaving me broke all the time

R.O.R wrote: »

Commercial road tax is €333 a year for all commercial vehicles (up to a certain weight, all "jeeps" will fall under that).

As a self employed photographer, you shouldn't have any issues taxing a commercial vehicle. Might be easier if you are VAT registered, but I believe that isn't really required.

Nice big 4x4 with some classy branding to promote the business could look very good.

Very helpful, thank you, ROR!

€333 Seems good. Seems the only way it's feasible to actually buy a larger engined vehicle is to tax it commercially. Tax is very expensive, I must admit (even for someone not into motoring in general, it seems a very high tax).

I'm not VAT registered (it only confuses me and 70% of the people i deal with are everyday people (with the others being businesses) so VAT just makes things difficult.


Decals and branding are a bit hit and miss though. On one hand, a nice looking, well-kept jeep/SUV with well-designed decals would be a great little promotional piece. On the other, people thinking there's ten grand worth of camera gear in the boot would make it a nightmare for break-ins.


EDIT: Out of curiousity, is R.O.R (your username) "Rules of (the) Road"? I only ever see you posting in Motors...?

mickdw

Im in a similar situation re Vat registration. While there is a requirement to be registered for VAT over a certain (low) turnover, if you deal with private clients (non businesses), you are at an advantage in not having to charge vat. In your circumstances, its best avoided if possible I would have thought.
Similarly Ive thought about using a commercial vehicle instead of car but I just dont like 4 x 4s as I like a low slung car really.