Commercial Company Vehicle

Redgirl82

OK bit of odd question. I have a company car and it is due for renewal. I was going to leave the scheme because of BIK but another person in the company recently changed there vehicle and got a Mitsubishi Pajero Executive

I couldn't understand why they went with such a high cost vehicle as they had complained about BIK before. Anyway was chatting and they said there is loop hole in tax and you can get one of these and it is classed as commercial vehicle so the BIK is low???

I done a google and can't seem to find anything. Is this correct? are there other vehicles which fall into same bracket?

bazz26

Some manufacturers are offering SUVs that are classed as crew cabs. For example Land Rover were selling the Discovery Business edition which has 2 rows of seats but is classed as a crew cab. All official with Revenue.

For example:
http://www.driving.ie/used-cars/Land-Rover/Discovery/XE-Business/170814338537871820/

This is the Pajero version:
http://www.driving.ie/used-cars/Mitsubishi/Pajero/3.2-5/37113845260769990/

Redgirl82

bazz26 wrote: »

Some manufacturers are offering SUVs that are classed as crew cabs. For example Land Rover were selling the Discovery Business edition which has 2 rows of seats but is classed as a crew cab. All official with Revenue.

For example:
http://www.driving.ie/used-cars/Land-Rover/Discovery/XE-Business/170814338537871820/

This is the Pajero version:
http://www.driving.ie/used-cars/Mitsubishi/Pajero/3.2-5/37113845260769990/

Thanks, is there any way to check what other companies would have similar?

How does it actually affect the BIK?

Alan Shore

There are two seperate issues here.

These big jeeps are classed as commercial for Motor Tax purposes this needs them to qualify for a VAT reclaim.

Then people assume that they are vans for BIK this is not the case they are cars
http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/faqs/company-vehicles.html#car14

Redgirl82

Sorry found, it is under van

http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/private-use-vans.html

R.O.R

Redgirl82 wrote: »

Sorry found, it is under van

http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/private-use-vans.html

But the Pajero Business is not a van. It's technically a commercial, but it's not a van, and someone is in for a very nasty shock when the Revenue pick that up, and they will.

Rumour is that the 5 seat commercial will lose its VAT reclaim status early next year.

gutteruu

Heard the toyota land cruiser qualifies as commercial aswell.

Redgirl82

R.O.R wrote: »

But the Pajero Business is not a van. It's technically a commercial, but it's not a van, and someone is in for a very nasty shock when the Revenue pick that up, and they will.

Rumour is that the 5 seat commercial will lose its VAT reclaim status early next year.

The revenue already know....see below: Where a crew cab or other similar type of vehicle meets all of these criteria it would be regarded as a van rather than a car

sword1

R.O.R wrote: »

But the Pajero Business is not a van. It's technically a commercial, but it's not a van, and someone is in for a very nasty shock when the Revenue pick that up, and they will.

Rumour is that the 5 seat commercial will lose its VAT reclaim status early next year.

n1 classification is a european rule,while we can have our own i dont see ireland going against the flow on this with an election coming up

R.O.R

Redgirl82 wrote: »

The revenue already know....see below: Where a crew cab or other similar type of vehicle meets all of these criteria it would be regarded as a van rather than a car

Does it meet all of the criteria? No!

Fails on the the 3rd stipulation by having both Windows and seats behind the driver and therefore is not a van by the Revenue definition.

Redgirl82

R.O.R wrote: »

Does it meet all of the criteria? No!

Fails on the the 3rd stipulation by having both Windows and seats behind the driver and therefore is not a van by the Revenue definition.

If you read the full link

"Where a crew cab or other similar type of vehicle meets all of these criteria it would be regarded as a van rather than a car"

I would guess these type of vehicle are covered under crew cab

R.O.R

Redgirl82 wrote: »

If you read the full link

"Where a crew cab or other similar type of vehicle meets all of these criteria it would be regarded as a van rather than a car"

I would guess these type of vehicle are covered under crew cab

They are covered under Crew Cabs, and are subject to BIK at standard car rates.

They are NOT subject to the flat rate 5% BIK that vans are subject to.

If your colleague is paying BIK on a Mitsubishi Pajero Executive, at 5%, he/she is going to have a very nasty shock when Revenue cop that it's a car rather than a van.

Redgirl82

R.O.R wrote: »

They are covered under Crew Cabs, and are subject to BIK at standard car rates.

They are NOT subject to the flat rate 5% BIK that vans are subject to.

If your colleague is paying BIK on a Mitsubishi Pajero Executive, at 5%, he/she is going to have a very nasty shock when Revenue cop that it's a car rather than a van.

I should have mentioned I am not putting the section in bold. Just copying and pasting from website.....

I see you have found the bold function on boards:P

If it is classed as a commercial vehicle then I would guess they will have no shock.

Also I drive a Qashqai and was looking to replace with a X-Trail, I was thinking this might work for me but after reading the criteria it won't so it is not really an issue with me....just interested

R.O.R

Redgirl82 wrote: »

I should have mentioned I am not putting the section in bold. Just copying and pasting from website.....

I see you have found the bold function on boards:P

If it is classed as a commercial vehicle then I would guess they will have no shock.

Also I drive a Qashqai and was looking to replace with a X-Trail, I was thinking this might work for me but after reading the criteria it won't so it is not really an issue with me....just interested

The bit in BOLD is so there is no confusion.

Despite what a lot of people think, just because a vehicle is a commercial doesn't mean that BIK is 5% on it. The flat rate of BIK at 5% only applied to vehicles that meet Revenue's strict criteria of a Van.

If your colleague was complaining about BIK being too high, then went and got themselves a €52,000 Pajero thinking BIK is only 5% as it's a commercial, then they are going to be shocked to get hit at 30% (or whatever rate it is based on their annual business mileage).