Using car for commercial use?

pbthevet

Just wondering if theres any issues with using a car for work.

Vet by trade considering buying a rav4. Seats in back go down flat. Tax only €280 and no annual doe. Plus cheaper insurance.

Lots of advantages compares to say a commercial outlander with €333 tax, doe every year and huge depreciation. Be worthless in 5 years wheras rav4 would be salable.

Outlander commercial : €28k
Rav4 4x4 passenger : €32k
so nothing in it really. Big saving is when trading in in 3-5 years time

Shedite27

You'll be a different class of insurance if you're using it for work. DO an online quote with one of the usual suspects to figure out how much.

corktina

ask your broker/company. We don't know what's in your policy/quote

pbthevet

Say if a carpenter uses a car to bring tools to job for example. Does he need commercial insurance then?

Fuzzy Clam

I think it would have to taxed as a commercial vehicle and you won't then be allowed to use it for personal use.

Fuzzy Clam

pbthevet wrote: »

Say if a carpenter uses a car to bring tools to job for example. Does he need commercial insurance then?

If you're using it for work, you need to inform your insurance company.

mickdw

Its an option but I think the way a private car is handled from a tax point of view may make it more expensive.
I commercial can be totally costed within the business whereas typically a private car depreciation and costs will only be allowed up to a certain percentage.
Depending on you business setup, the vehicle could be handled in numerous ways.

corktina

Fuzzy Clam wrote: »

I think it would have to taxed as a commercial vehicle and you won't then be allowed to use it for personal use.

nope, not correct. You can tax even a full-blown Commercial private if you really want to. A car designated as a car may be taxed as private

pbthevet

Ok put it this way


I buy rav4.

Seats down flat. Drawers put in and 200kg of equipment in back.

I crash. Sure hiw they know im on way to a call to a sick cow or just going to the shops?

corktina

fairly obvious you are using it for business in that instance!

foggy_lad

pbthevet wrote: »

Ok put it this way


I buy rav4.

Seats down flat. Drawers put in and 200kg of equipment in back.

I crash. Sure hiw they know im on way to a call to a sick cow or just going to the shops?

The insurance company will investigate and ask questions which you are supposed to answer honestly as you make a declaration and may also be required to swear an oath in court. It only takes one witness to swear on oath that you used the vehicle for work to make a liar of you and ruin your professional reputation.

Buy yourself a cheap van and use that for work if worried about the cost and depreciation, you will then have money left for a nice car for private social and leisure use.

ironclaw

pbthevet wrote: »

I crash. Sure hiw they know im on way to a call to a sick cow or just going to the shops?

If insured privately, your policy document will specifically say you are not to use it for business. And they'll ask you your profession, so a crashed car in a rural area, possibly late at night during the calving season, then it will quickly add up. Odds are, no one will check, but its someones duty to go over this and if caught, well, it kinda undoes any saving you made!

aaakev

Crewcab all the way if you want the back seats too

mgbgt1978

OP, you're better off asking a Broker for advice on this one.
There is an option for Social, Domestic and Business Use with most policies, but at least a Broker can advise you without you having to give too much info to an Insurer (and allow them to up your premium even though it may not be necessary).

Will it be bought and ran out your net earnings or from a business account? If the former than work away with the rav 4 provided you have adequate insurance for the business use.

If its going to be ran as a company car than the BIK is not small unless you are doing 20k + business miles per annum.

A buddy is a vet, works for a practise and runs a Mondeo privately that he uses for work. No issue whatsoever with insurance, its a tiny bit more than normal.

I'm on the road every day with my private car for work, insurance is under 500 a year, once you are over 25 with a ncb and a normal vehicle It's very reasonable imo.