Do I pay tax arrears if my car wasn't insured?

ChinChanGamble

Hey,

My car hasn't been insured or on the road for six months. My tax expired at the time and I never declared it off the road as I never renewed my insurance either.

I'm thinking of getting insured on the same car again, and just wondering does anyone know if I will have to pay arrears for the last six months when taxing the car again?

Thanks

Atlantic Dawn

If you still own the car yes you will owe the arrears. If you were to sell the car to a friend and then buy it back from them a week later the arrears would be cleared.

ChinChanGamble

Thanks very much Atlantic Dawn. I had a feeling this would be the case. It says on the Citizens Advice that tax is for the use of the car on the road, I can't see how not being insured doesn't suffice that the car wasn't on the road, I'm not paying the tax for the purpose that it is for. The new rules for declaring the car off the road really applies to cars that are insured and can legally be on the road.

Thanks again.

DesperateDan

What a ridiculous situation the government has for itself in for recouping car tax

ChinChanGamble

After contacting my local tax office I have been informed that it doesn't matter if your car is insured or not you have to pay the arrears because it wasn't declared off the road. But, I have to have my car insured to legally have it on the road and pay the arrears!

Yawns

If you are not going to use the car, you declare it off the road. Insurance is a separate issue. Tax is now owed so you have 2 options. First is to pay the arrears which is more expensive per month than if you had taxed it.

Second option is to "sell it". You don't actually have to sell it here tho. Just get the name changed on the log book. It takes a few weeks if you are changing it to one name and then back to your name again but it clears you of owing any arrears. So change it to a brothers name or any name really. Get the new log book and then change the name again if needed,as as insurance companies will insist on it being in your name or that of a spouse. You need to have an insurable interest in the car so it can't be registered to a Spongebob Squarepants and you insured as a main driver etc.

Takes time for sending back and receiving but clears arrears. If you have a wife then you will only need to change it to her name and it will be fine.

Yawns

If you are not going to use the car, you declare it off the road. Insurance is a separate issue. Tax is now owed so you have 2 options. First is to pay the arrears which is more expensive per month than if you had taxed it.

Second option is to "sell it". You don't actually have to sell it here tho. Just get the name changed on the log book. It takes a few weeks if you are changing it to one name and then back to your name again but it clears you of owing any arrears. So change it to a brothers name or any name really. Get the new log book and then change the name again if needed,as as insurance companies will insist on it being in your name or that of a spouse. You need to have an insurable interest in the car so it can't be registered to a Spongebob Squarepants and you insured as a main driver etc.

Takes time for sending back and receiving but clears arrears. If you have a wife then you will only need to change it to her name and it will be fine.

Atlantic Dawn

ChinChanGamble wrote: »

After contacting my local tax office I have been informed that it doesn't matter if your car is insured or not you have to pay the arrears because it wasn't declared off the road. But, I have to have my car insured to legally have it on the road and pay the arrears!

"""Sell""" car to a friend or family member
Wait until the new logbook comes in their name
Buy car back off them and resubmit logbook for you as new owner
Insure car
Get tax from that date
Job done, no arrears.

ChinChanGamble

Thanks for all the advice guys :-)

galwaytt

ChinChanGamble wrote: »

Thanks very much Atlantic Dawn. I had a feeling this would be the case. It says on the Citizens Advice that tax is for the use of the car on the road, I can't see how not being insured doesn't suffice that the car wasn't on the road, I'm not paying the tax for the purpose that it is for. The new rules for declaring the car off the road really applies to cars that are insured and can legally be on the road.

Thanks again.

How does not having insurance with a private, commercial operator have anything to do with tax collected by the State ?

You just have to look at the Garda Traffic Twitter feed to see the amount of cars without insurance on the roads every day.......