complicated VRT enquiry

s8n

Folks,

looking for a bit of help on a vrt issue.

Please dont ask me to search the forum as I have and cant find specific info related to my query. I've rang the revenue, but they were no help (guy on the phone didn't give a cr@p and wasn't interested in finding out).

I currently work for an English company (this may be important) from Dublin.
I've just sold my house in Dublin (also may be important) and am moving to Belfast on a placement with my job for 8 months.
When up there, I'm planning to purchase a new Audi A4 and insure it for use from NI for work and personal use. It will also be taxed for NI. I will be living in NI but will travel to Dublin at weekends for personal reasons.
When I come back to Dublin in circa 8 months permanently, will I be liable for VRT on the car ?

unkel

Good news for ya. You will not be liable for VRT when you move back here because you will have owned the car for 6 months or more as a UK resident. You will not be able to sell the car for another 12 months after you move back otherwise you'll have to pay the VRT after all

Now, make sure you have absolute proof that you lived in the north for that time. Utility bills, ATM withdrawals, bank accounts with your salary coming in, etc. etc.

s8n

Excellent, however, I was going to leave my salary going into my bank a/c here in Ireland as is, but get a letter from my job stating I was on placement for 8 months in NI. Will that be good enough ?

Guvnor

What unkel said mate.

The citizens advice website has info on this.

It looks cut and dry - you will be living in the UK for 8 months and will own a car there for the duration. This passes the criteria so good for you, hope you get a bargain!

galwaytt

s8n wrote: »

Excellent, however, I was going to leave my salary going into my bank a/c here in Ireland as is, but get a letter from my job stating I was on placement for 8 months in NI. Will that be good enough ?

....mmm, I wouldn't risk it. Open an account up North and get your salary paid in there.

Important though - for tax purposes (and it is the same Revenue you're dealing with...)....where will you be paying tax ?

kyote00

in which jurisdiction will you pay tax ?

If its Ireland, then the revenue may deem you to be resident here ....

s8n wrote: »

Excellent, however, I was going to leave my salary going into my bank a/c here in Ireland as is, but get a letter from my job stating I was on placement for 8 months in NI. Will that be good enough ?

drunkmonkey

unkel wrote: »

Good news for ya. You will not be liable for VRT when you move back here because you will have owned the car for 6 months or more as a UK resident

I'd be inclined to disagree with you there, my sister is in a similar situation, she has owned her can in NI for 11mts and 2 weeks, The revenue are demanding she pay the VRT as she has not been outside Ireland for a full year....6mts car ownership is correct but she has to be outside the country for a year...

ninty9er

drunkmonkey wrote: »

I'd be inclined to disagree with you there, my sister is in a similar situation, she has owned her can in NI for 11mts and 2 weeks, The revenue are demanding she pay the VRT as she has not been outside Ireland for a full year....6mts car ownership is correct but she has to be outside the country for a year...

I think he's right. Also if you're paying PAYE here as opposed to UK income tax, you'll have to pay VRT.

galwaytt

drunkmonkey wrote: »

I'd be inclined to disagree with you there, my sister is in a similar situation, she has owned her can in NI for 11mts and 2 weeks, The revenue are demanding she pay the VRT as she has not been outside Ireland for a full year....6mts car ownership is correct but she has to be outside the country for a year...

....mmm, I thought as much, but coming home the odd w/end won't disqualify you from being a resident of NI. Get a NI address, accounts, utilities, and pay UK tax....and keep it for 12mths, and it'll be worth it. Be sure the buy absolute bestest, highest spec one you can, though ! Load it with toys, leather etc.

Mylow

I returned from UK after 19 years. The revenue office wanted to see, bank account details, electricity/gas bills, car insurance, mortgage/rent paymets. When you aren't paying the VRT they make you jump through some serious hoops. To top it all off they said they would need to retain the documents I gave them until they had copied them.....guess what....they lost them. I should have made them pay for new bank statements.

I think its 6 months for a 2nd hand car and 12 months for a new one to qualify VRT free, though I could be totally wrong. I had mine for 2 1/2 years before I came back.

drunkmonkey

ninty9er wrote: »

I think he's right. Also if you're paying PAYE here as opposed to UK income tax, you'll have to pay VRT.

I've got a letter to prove it, 6mts car ownership and 12mts residency...

It's a used car i'm talking about...don't know the story with new ones...

Atomic Pineapple

drunkmonkey wrote: »

I've got a letter to prove it, 6mts car ownership and 12mts residency...

It's a used car i'm talking about...don't know the story with new ones...

yeh thats true, you must own the car for atleast six months and be resident in the coutry for at least 12 months to qualify for vrt exemption so the OP will still have to pay vrt

jimmycrackcorm

Customs will look at the ties the op has down south. They're wise to people doing a temporary move north as people in the border counties have been doing for a long time.

Esel

Do a search on www.revenue.ie for VRT and residency. It is all about 'residence' - how it's defined, where yours is!

JohnH1099

As far as I understand you need to be TAX resident outside the country for 1 full year and have the car 6 months.

Being resident in the UK for a year while paying tax in Ireland isn't going to be enough, you'll get stung for VRT with the car when you register it here

ardmacha

The general rules for determining "normal residence" are as follows:

* "normal residence" means the place where a person lives for at least 185 days in each calendar year because of personal and occupational ties;
* in the case of a person who lives in turn in two or more Member States, his place of "normal residence" is regarded as the place of his personal ties provided that he returns there regularly;
* where a person is living in a Member State in order to carry out a task of a set duration, his place of residence is still regarded as being the place of his personal ties, irrespective of whether he returns there during the course of this activity;
* attendance at a university or school in another Member State does not constitute a transfer of normal residence.

s8n

thanks for all the help folks. Not as good news as I first thought :(:(

unkel

My bad

Forgot you have to be resident for 12 months. Can you extend the work placement to 12 onths?