Commercial vehicle tax

Bonzo Delaney

Has there been many cases brought to court of people using commercial vehicles for private use.
In a position to change the family car and was thinking of buying a 161 business class five seater discovery claiming the vat back through the company but it would be mainly driven by herself

Eric Cartman

the gardai have said they don't really care, theres no prosecutions that I know of.

your real problem is revenue, claiming the vat back, and presumably claiming the diesel , if they came to do an audit and asked why you're claiming for another vehicle too when you're one person , or its clear that the discovery is not being used for business use at all you will run in to trouble.

if you want to buy it for the 333 tax, pay the vat , put it in her name , pay retail for diesel go ahead,
if however you try to pull any shenanigans with revenue and claiming its business miles / vat back etc... be prepared that it may come back to bite you badly.

Bonzo Delaney

Eric Cartman wrote: »

the gardai have said they don't really care, theres no prosecutions that I know of.

your real problem is revenue, claiming the vat back, and presumably claiming the diesel , if they came to do an audit and asked why you're claiming for another vehicle too when you're one person , or its clear that the discovery is not being used for business use at all you will run in to trouble.

if you want to buy it for the 333 tax, pay the vat , put it in her name , pay retail for diesel go ahead,
if however you try to pull any shenanigans with revenue and claiming its business miles / vat back etc... be prepared that it may come back to bite you badly.

Was thinking that alright thanks .
It'll be in a company name where my wife is also a listed director .
I was just wondering if of the off chance she was stoped with the kids in it doing family stuff.
Someone mentioned to me always keep some headed paper in it with the company name on it to say your on a errand for the company .
I've personally never heard of a case or perscution just wondering if there was ever a precedent set

Marcusm

Bonzo Delaney wrote: »

Was thinking that alright thanks .
It'll be in a company name where my wife is also a listed director .
I was just wondering if of the off chance she was stoped with the kids in it doing family stuff.
Someone mentioned to me always keep some headed paper in it with the company name on it to say your on a errand for the company .
I've personally never heard of a case or perscution just wondering if there was ever a precedent set

How old is it? Her BIK would be based on the original market value which might render this whole discussion moot.

Bonzo Delaney

Bonzo Delaney wrote: »

Was thinking that alright thanks .
It'll be in a company name where my wife is also a listed director ..........t

Marcusm wrote: »

How old is it? Her BIK would be based on the original market value which might render this whole discussion moot.

Indeed, the BIK is prohibitive really.
You get folk applying the 5% rate to 5 seat commercials but that's utter lunacy. Or the pooled car thing when there are no real employees and its brought home every evening. Loads of folk likely due a nice bill shortly I expect.

30% of €70k is €21k ....... roughly €10k/annum of BIK not being paid in loads of cases, lol.

Eric Cartman

Augeo wrote: »

Indeed, the BIK is prohibitive really.
You get folk applying the 5% rate to 5 seat commercials but that's utter lunacy. Or the pooled car thing when there are no real employees and its brought home every evening. Loads of folk likely due a nice bill shortly I expect.

30% of €70k is €21k ....... roughly €10k/annum of BIK not being paid in loads of cases, lol.

You can have it as a pool car and bring it hone if thats where the company address is, should be no issue there. The bik is done on the ex vat figure so it should be 30% of closer to 50k , so 15k but you get 12.5% per year writeoff for the company as its a depreciating asset , so its a bit swings and roundabouts.

Marcusm

Eric Cartman wrote: »

You can have it as a pool car and bring it hone if thats where the company address is, should be no issue there. The bik is done on the ex vat figure so it should be 30% of closer to 50k , so 15k but you get 12.5% per year writeoff for the company as its a depreciating asset , so its a bit swings and roundabouts.

For it to be a pooled car there must be no private use; the OP is contemplating only private use.

Bonzo Delaney

Thanks for the input folks it's food for tought. Never crossed my mind about Bik thanks for the heads up
I guess it's not the gardaí I've to be concerned about it's revenue I've to keep satisfied enough to not draw unwanted attention from..
A good chat with my accountant is next on the list .

Eric Cartman

Eric Cartman wrote: »

You can have it as a pool car and bring it hone if thats where the company address is, should be no issue there. The bik is done on the ex vat figure so it should be 30% of closer to 50k , so 15k but you get 12.5% per year writeoff for the company as its a depreciating asset , so its a bit swings and roundabouts.

And how many employees would you reckon are necessary?

I'm aware of the 12.5% capital allowance but it's not at all a swings and roundabouts situation.

Are you sure the BIK is on the OMSP? I'm pretty sure it's on the OMV which is inclusive of VAT....is the cost for Joe bloggs to buy one new.

That RR of yours could be a talking point I reckon

Bonzo Delaney

Bonzo Delaney wrote: »

.....
A good chat with my accountant is next on the list .

There's plenty folk using the pooled car & applying 5% bik to 5 seat commercials so be wary of what your accountant reckons is OK. Word to the wise and all

Bonzo Delaney

Augeo wrote: »

There's plenty folk using the pooled car & applying 5% bik to 5 seat commercials so be wary of what your accountant reckons is OK. Word to the wise and all

I accept that using the 5 seat commercials form the kugas to there's one benytaga I know of, is taking complete advantage of the vat set up
Does the same scrutiny apply to say pick ups which would be fairly popular as a family car while using the commercial rates of vat

Bonzo Delaney

Bonzo Delaney wrote: »

I accept that using the 5 seat commercials form the kugas to there's one benytaga I know of, is taking complete advantage of the vat set up
Does the same scrutiny apply to say pick ups which would be fairly popular as a family car while using the commercial rates of vat

Crewcabs are subject to "car" BIK rates too
No doubt widely subject to incorrect pooling claims too, IMO.

Count Down

What about insurance? They always ask what will the vehicle be used for.
If you're involved in an accident with a resulting claim your insurance could be invalidated if you were using the vehicle for a purpose for which it was not intended.

ELM327

Count Down wrote: »

What about insurance? They always ask what will the vehicle be used for.
If you're involved in an accident with a resulting claim your insurance could be invalidated if you were using the vehicle for a purpose for which it was not intended.

Many commercial policies include SD&P cover. In which case domestic use is not an issue/

Count Down

It's just that I remember on another topic a member saying that he couldn't get insurance on his van for social, domestic and pleasure purposes because he had it registered for commercial road tax. He was a landscape gardener and was hoping to use the van for going windsurfing with his mates, as it would be handy for loading all their gear and boards. Not sure if he got it sorted out.

ELM327

Count Down wrote: »

It's just that I remember on another topic a member saying that he couldn't get insurance on his van for social, domestic and pleasure purposes because he had it registered for commercial road tax. He was a landscape gardener and was hoping to use the van for going windsurfing with his mates, as it would be handy for loading all their gear and boards. Not sure if he got it sorted out.

He could have gotten it insured on a commercial policy with SDP cover.
He was probably looking to get it insured privately which is more difficult.