Contract in UK - using a UK car under an Irish company

squeekyduck

My irish business has won a 24 month contract in the UK that starts shortly.

In order to keep costs down we are renting a house instead of a hotel for our staff. We also want to buy a UK car for our staff and register it to our business, is this possible since it will be a UK reg car and an Irish company?

Ideally we dont want the hassle of buying an Irish reg car and shipping it over as it will be more expensive, any advice appreciated.

ResearchWill

I see no problem with Irish Company buying car in UK, but would a rental car or contract lease be a better idea.

rainbowdash

I looked into something like this before, if you buy a UK reg. car that is primarily for business use in the UK then you can register it in Ireland and avoid the VRT (I think)

Also if you have an Irish VAT number you can buy the UK car, new or second hand I think, and not pay any VAT.

I am not an expert so obviously check it with revenue, I found the bit below but I know there are other options - do a bit of research and work the system as best you can.

Yes. Under normal circumstances you do. However, if you live in the Republic of Ireland (State resident), and are employed by an employer based outside the State (e.g. in Northern Ireland) who provides you with a category A (passenger vehicle) company car that is registered in Northern Ireland as part of your contract of employment, you may, under certain circumstances (on application to Revenue), be eligible for a temporary exemption from the payment of VRT. As part of the qualifying criteria, the vehicle must be used for business purposes principally outside the State.

Fr_Dougal

Have you looked into the possibility of buying it yourself and paying yourself a car allowance? That way you'll be able to bring it home when the contract is up and you won't have to pay the VRT.