Buying a commercially taxed car

unnamed · 04-09-2021 5:01pm #1

Hi,

I've read some other discussions on this and I'm still not clear, so apologies if this is clear to everyone else.

I'm interested in buying a Jeep (2021) which is currently taxed commercially. I'll be using it for private use (but I do have a VAT number).

The tax rate is over 2k, for private, and around 300 for commercial. The new owner claims that I can continue to use the commercial tax, which sounds too good to be true, (which means that it probably is).

So, what do I need to know? Will it impact my insurance etc?

Thank you.

Del2005 · 04-09-2021 5:13pm

It depends on what County you live in to be able to tax in commercial for private use, some are better at enforcing the law than others.

Insurance will have to be commercial, with social and domestic use, but it's not cheap and you might have issues transferring a private policy. You also loose the ability to drive other cars if you have a commercial policy.

magicbastarder · 04-09-2021 5:19pm

if you use the vehicle for personal use, you pay private rates. what the previous owner says makes no difference. it's the use of the vehicle which determines type of tax due

unnamed · 04-09-2021 6:23pm

Thank you both for your help.

I’ll check with the insurance company Monday morning and see what the story is.

magicbastarder · 04-09-2021 6:45pm

They won't be able to help with your tax question!

User1998 · 05-09-2021 1:03am

https://www.boards.ie/discussion/comment/117846661#Comment_117846661

Probably the least enforced law out there. Everyone drives their commercial for private use. Just keep something to do with your business in the boot

Del2005 · 05-09-2021 11:03am

https://www.boards.ie/discussion/comment/117848377#Comment_117848377

It's getting the commercial tax that can be tricky in some counties. Some are more diligent than others at enforcing the law, the Gardaí don't enforce the majority of our laws never mind incorrect use of a commercial vehicle.

BTW having something in the boot related to work wouldn't matter. The declaration you sign says "I declare that vehicle registration number will be used only as a goods carrying vehicle in the course of my business/trade and will not be used at any time for social, domestic or pleasure purposes." So any personal items in the vehicle means that you are supposed to privately tax it, not that anyone cares.

User1998 · 05-09-2021 6:16pm

https://www.boards.ie/discussion/comment/117848908#Comment_117848908

Yeah I agree that it’s difficult to get approved for commercial tax, but I don’t really think its a Garda matter. Its more a Revenue issue, hence why its never enforced

Buddy Bubs · 05-09-2021 9:37pm

Bit tricky on brand new vehicle taxing for first time, doddle on renewal. Just renew it commercially, hardly ever enforced

Del2005 · 05-09-2021 11:09pm

https://www.boards.ie/discussion/comment/117851161#Comment_117851161

When the current tax expires it'll be the first time for the OP and they will need to supply documents to get commercial tax, depending on their county it could be as simple as stick your PPSN number down on the form or hard needing to bring proof of commercial business requirements.

jeepcj · 06-09-2021 6:30pm

Post the documents in for first tax renewl, don't do it in person. If you are not there, they can't ask you any questions.

unnamed · 06-09-2021 9:10pm

Thank you everyone for your help.

One insurance company (without me prompting them) told me that the car was commercially taxed and that I would need to provide proof that I had changed it with 30 days of the policy starting.

I got a quote from another insurance company and they didn’t care about how it was taxed.

Del2005 · 06-09-2021 11:39pm

https://www.boards.ie/discussion/comment/117855013#Comment_117855013

The councils enforcing the law don't ask questions. You have to provide them with documentation to prove that you have a commercial use, don't provide the required documents and you won't get tax. In person, online or post makes no difference.

colm_mcm · 11-09-2021 8:34am

Is it a crewcab or a 2 seater?

ELM327 · 13-09-2021 3:45pm

Pretty easy to tax a commercial commercially these days. Depending on the county. Currently have a van taxed commercially and insured commercially (providing proof of commercial insurance and the RF111a when taxing for the first time in my name). I do use it a bit for my online side hussle but mostly used as a private runabout. I'm a PAYE worker and do not need the van for my main (WFH) job in risk data science.

Back in my mis spent youth I had a 5.7V8 us pickup insured on classic insurance but taxed commercial. It depends on who you get on the day in the council. The AGS don't care.

unnamed · 29-09-2021 2:46pm

https://www.boards.ie/discussion/comment/117875535#Comment_117875535

It's a standard 5-seater Jeep.

In the end, all of the insurance companies checked the tax to make sure it was tax privately. I'll filled a "Change of Particulars" form at the tax office and got it changed. It will cost me a few hundred more a year in a tax, but so be it.

colm_mcm · 29-09-2021 6:58pm

Will you still have to pay commercial rates on tolls?

Something not quite right here, it looks like it was registered as a crewcab by previous seller to dodge VRT, but now you’re using it as a car. I think it’s still classed as a commercial vehicle even though you have it taxed privately?

did you have to pay the old style cc based tax?

were you able to get normal insurance?

prob still worth overpaying on the tax because I assume you saved a lot vs the price of a regular non commercial version

unnamed · 30-09-2021 11:16am

I was in the Motor Tax office yesterday, and I completed a change of Particulars form. According to the Tax office, it is now considered a private vehicle; I'll get a new logbook (or whatever it's called now).

I got a new tax disk there and then (I had to surrender the current tax disk) and pay the tax from when I purchased it (8 Spet). It was already taxed until July next year, so they got the tax money twice.

It's a 2021 car ... so I based using the current tax model. The commercial tax was 333/year, private tax is 1200. I suspect the importer, a garage, was trying to avoid paying the private car tax rate.

The insurance company had given me 30 days cover to get the car changed to private tax; I'll need to contact them next to confirm. They said a scan of the tax disk would suffice.

R.O.R · 30-09-2021 12:32pm

What does section J on the VLC say? That will tell you if it's a commercial vehicle or not.

Taxation classification as private doesn't mean it's now a private vehicle, just that it's taxed privately now.

unnamed · 30-09-2021 1:24pm

https://www.boards.ie/discussion/comment/117958565#Comment_117958565

I need to wait to get the new one returned.

Marcusm · 01-10-2021 10:04am

https://www.boards.ie/discussion/comment/117958253#Comment_117958253

what’s the mileage? As a commercial it presumably qualifies for 13.3% VRT rather than the ?31% which would otherwise have applied if it had been treated as a cat A vehicle.

Buying a commercially taxed car

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