Motor tax - when are you liable for arrears?

boomshakalaka

Did a search but couldn't find any posts on this that weren't a million years old.

Out of curiosity, at what stage do you become liable for arrears on your motortax?

Example: My vehicle is taxed until the end of August, do I need to purchase a new tax disc before the end of August to avoid arrears, or can I pay any time during September to receive a tax disc starting September 1st?

I think there needs to be a fully lapsed month without tax on the vehicle before arrears are liable, so using the same example, if the tax lapses end of August and I don't go to tax the vehicle until early October, I need to pay arrears.
Is this correct?

Gov websites on this are.. not clear!

Thanks

antodeco

Trying to decipher your post a bit.

Basically you are liable for every month of tax.

Expires 31st August:
- Disc renewed in August will cover from Sept 1st
- Disc renewed anytime in September, payment to cover from Sept 1st
- Disc renewed anytime after September, payment to cover from Sept 1st

boomshakalaka

antodeco wrote: »

Trying to decipher your post a bit.

Basically you are liable for every month of tax.

Expires 31st August:
- Disc renewed in August will cover from Sept 1st
- Disc renewed anytime in September, payment to cover from Sept 1st
- Disc renewed anytime after September, payment to cover from Sept 1st

Lol sorry - I'm trying to figure out when arrear fees kick in. Thanks for giving it a go!

In your example, I would need to pay arrears only in the final bullet point? Or also on the second bullet point?

I'm basically trying to figure out if you need to renew the tax before it actually expires to avoid having to pay arrears.

endacl

All are true. Technically you are committing the offence of non-display if the date is later than that displayed on the disc.

antodeco

Arrears are to cover preceding months, so if you pay in September, there are no arrears, as you're paying for a full month (from 1st September). So if you renew September 30th, you are paying for a full month of September.

If you renew in October, you also have to pay for the full month of September.

boomshakalaka

antodeco wrote: »

Arrears are to cover preceding months, so if you pay in September, there are no arrears, as you're paying for a full month (from 1st September). So if you renew September 30th, you are paying for a full month of September.

If you renew in October, you also have to pay for the full month of September.

... and because I didn't pay for September when renewing in October, the arrears fee is added on to the total as the full month has lapsed without the vehicle being taxed.

Makes sense now, thank you, this was the part I wasn't clear on!

Vehicle is taxed now, but once it expires I want to pay for the full year of tax and I was looking at timings and finances, this info helps make that plan.

Thanks all!

gerard2210

antodeco wrote: »

Trying to decipher your post a bit.

Basically you are liable for every month of tax.

Expires 31st August:
- Disc renewed in August will cover from Sept 1st
- Disc renewed anytime in September, payment to cover from Sept 1st
- Disc renewed anytime after September, payment to cover from Sept 1st

From what I remember you can pay up to end of September without incurring arrears. But if you drive the car after August 31st you may be commiting an offence as your vehicle isn't taxed.
I used to think I had a months grace until I was stopped at a checkpoint and informed otherwise. I was let off with a friendly warning.

boomshakalaka

gerard2210 wrote: »

From what I remember you can pay up to end of September without incurring arrears. But if you drive the car after August 31st you may be commiting an offence as your vehicle isn't taxed.
I used to think I had a months grace until I was stopped at a checkpoint and informed otherwise. I was let off with a friendly warning.

That's good to know!

antfin

Arrears are chargeable from one month after expiry. So if your tax expires on 31 August and you renew during September it will commence from 1 September without arrears being added ie you pay the regular rate from the period of expiry. If you renew in October your tax will commence from 1 September but the period from 1 September up to the current date will also be charged arrears on top of the usual rate ie you will have to pay your usual rate plus 10% for the late period.

Buffman

antfin wrote: »

If you renew in October your tax will commence from 1 September but the period from 1 September up to the current date will also be charged arrears on top of the usual rate ie you will have to pay your usual rate plus 10% for the late period.

Almost right, if you pay in October the tax disc will start in October and the arrears will cover September, you don't pay twice for September.

antfin

Buffman wrote: »

Almost right, if you pay in October the tax disc will start in October and the arrears will cover September, you don't pay twice for September.

I never said that you pay twice for September. Arrears aren't the actual payment for that month. Arrears are the 10% on top of the tax due for that month. So you pay tax (100% of the rate) plus arrears (10% of the rate) combined equal to 110% for that month.

antodeco

Just as a side question. Is there any way (without disposing of a car) to get a refund on motor tax not yet used? I had to tax the car for an extra 3 months, to get it NCTd, which it's passed, but still have 2 months paid tax left?

tcawley29

antodeco wrote: »

Just as a side question. Is there any way (without disposing of a car) to get a refund on motor tax not yet used? I had to tax the car for an extra 3 months, to get it NCTd, which it's passed, but still have 2 months paid tax left?

no

CiniO

antodeco wrote: »

Just as a side question. Is there any way (without disposing of a car) to get a refund on motor tax not yet used? I had to tax the car for an extra 3 months, to get it NCTd, which it's passed, but still have 2 months paid tax left?

You can obtain motortax refund if vehicle has not been used in public place since the inception of tax disc.

It is possible in certain circumstances to claim a refund of motor tax. Your application for a refund should be made directly to your local Motor Tax Office on Form RF120 (pdf). You can claim a refund of motor tax if:

The vehicle has been scrapped, destroyed or sent permanently out of the State
The vehicle has been stolen and has not been recovered by the owner
The vehicle has not been taken out or used in a public place at any time since the issue of the current disc
The owner of the vehicle has stopped using the vehicle because of illness, injury or other physical disability
The owner of the vehicle has stopped using the vehicle because they are absent from the country for business or educational purposes
The owner of the vehicle has stopped using the vehicle because of service overseas with the Defence Forces

However it won't apply in your case as firstly you have only 2 months tax left, and to obtain refund it must be at least full 3 months.
And secondly you probably used your vehicle in public place once you drove it to NCT centre (only guessing).

Anyway - you shouldn't have taxed it in a first place.
You could have declared it off the road, and you could still fully legally drive it to NCT centre for the purpose of the test once untaxed and declared off the road.

mk7r

CiniO wrote: »

You can obtain motortax refund if vehicle has not been used in public place since the inception of tax disc.



However it won't apply in your case as firstly you have only 2 months tax left, and to obtain refund it must be at least full 3 months.
And secondly you probably used your vehicle in public place once you drove it to NCT centre (only guessing).

Anyway - you shouldn't have taxed it in a first place.
You could have declared it off the road, and you could still fully legally drive it to NCT centre for the purpose of the test once untaxed and declared off the road.

Is that still a thing?

phill106

You can declare them off the road alright, but not backdated.
I did it online at start of the lockdown, as second car wasnt being used and tax was about to be up.

ted1

boomshakalaka wrote: »

Lol sorry - I'm trying to figure out when arrear fees kick in. Thanks for giving it a go!

In your example, I would need to pay arrears only in the final bullet point? Or also on the second bullet point?

I'm basically trying to figure out if you need to renew the tax before it actually expires to avoid having to pay arrears.

there is no arrears fees. if you pay in November they'll just charge you the standard rate for September and October.

colm_mcm

ted1 wrote: »

there is no arrears fees. if you pay in November they'll just charge you the standard rate for September and October.

I thought arrears were 10% of the annual?

So if tax expired the end of august and you taxed in November you’d pay arrears rate for September and october and then 3/6/12 months from November onwards at standard rate.

Buffman

ted1 wrote: »

there is no arrears fees. if you pay in November they'll just charge you the standard rate for September and October.

100% wrong, if you pay in November you'll have to pay arrears for Sep & Oct and your 'new' tax will start in November for a minimum of 3 months.


https://www.motortax.ie/OMT/omt.do

Monthly arrears are charged at one tenth of the annual rate and are provided for by Section 6 of the Non-Use of Motor Vehicles Act 2013.

coylemj

colm_mcm wrote: »

I thought arrears were 10% of the annual?

So if tax expired the end of august and you taxed in November you’d pay arrears rate for September and october and then 3/6/12 months from November onwards at standard rate.

+1 It might be useful to describe it this way......

Any whole months which have elapsed since the disc expired have to be paid for as 'arrears' on top of the charge for the new disc. They will not issue a tax disc that starts earlier than the first of the current month.

So you pay 10% of the annual tax per expired whole month in respect of arrears, plus the 3/6/12 months charge for the new disc. Which will start on the first of this month.

ted1

Buffman wrote: »

100% wrong, if you pay in November you'll have to pay arrears for Sep & Oct and your 'new' tax will start in November for a minimum of 3 months.


https://www.motortax.ie/OMT/omt.do

So just 10% wrong not 100%.

ObserverOFlife

Got a bit of a land at a checkpoint this evening - Guard asks me is there any reason my tax is out of date since the end of April ?!

I was mortified. I always get motor tax, insurance etc promptly when reminder comes out. I said straight out I didnt know It was out of date. He let me go with warning so fair duce to him!

I never got a reminder. So I then looked through my emails & found nothing.

I've now established that because I got my motortax online what with Covid & motor tax office closures last year, they DO NOT send a phsyical reminder anymore if you pay online once ! So an email reminder was sent to a closed email account FFS !

Yes theres blame on my part that I didnt notice it was out of date, first few months of year are busy with house & car insurance renewed in Jan, nct in Feb, so tax just slipped my mind & i usually rely on letter reminder....I cant help but feel aggrieved that I got no text message or phsyical letter reminder of any sort & now owe arrears. I find it an underhanded & unfair way of extracting more money from Joe Public !....

K.Flyer

Nowadays you just get one email and that's it, no more reminders.

It's up to you to ensure that your vehicle is up to date etc.

Decent of the Garda to let you off.

Atlantic Dawn

If only there was a disc in your windscreen that you could see each when you walked past the windscreen that showed when it expired. You could then have another disc that showed when the insurance expired and another for NCT.

ObserverOFlife

https://www.boards.ie/discussion/comment/117689369#Comment_117689369

Awe yeah real smart of ya. FYI I have precisely SIX poxy discs on my windscreen, nct, tax, insurance & 3 parking permits ! So forgive me if I dont gaze at them each time I get in the drivers door! Plus, I have 4 vehicles on the road to keep in compliance but these were renewed in motor tax office pre covid closures.

Ive said already theres blame on me, but I dont think its unreasonable to expect fairness in been notified properly when you have a bill/renewal !