Exempt from Paying VRT

lynchy

Hi,

I've just moved over to Leeds to work for a year. I need a car and its looking like a lot of hassle and money to insure my car. If I buy a car over here and I am working here for a year, am I exempt from paying VRT when I go home next year?

I should also mention that I will be working for an Irish company even I will be a resident here.
Thanks for any help

conor2469

Yes you can, however you will have to provide proof of date of purchase of the car over in the UK, as well as proof that you were using it over there such as tax certs, MOT certs, fuel bills etc. Once you come home to Ireland with your car you will have to prove that you are home permanently (Prove to them you have a job in Ireland). There could be even more rules/legislation that I am missing out but i think that is most of it. Also once you come back and VRT your car you have to wait at least 12 months before you can sell it.

lynchy

Thanks a million Conor. I'm really thinking of getting one now if this is the case. Another fella told me that I can only not pay VRT for a year and once my year back home is up I will have to pay the full whack. Do you know anything about this. Much appreciated

Gumbo

lynchy wrote: »

Hi,

I've just moved over to Leeds to work for a year. I need a car and its looking like a lot of hassle and money to insure my car. If I buy a car over here and I am working here for a year, am I exempt from paying VRT when I go home next year?

I should also mention that I will be working for an Irish company even I will be a resident here.
Thanks for any help

Keep everything, I mean everything.
But one of those A4 folders with clear plastic inserts (I use these for my service history) and place everything you spend on the car in it from day one.

Starting with the receipt for buying the car, petrol receipts, copy of V5, tolls, wipers, everything.

Then separately, keep all pay slips, bank statements, anything you buy for the place you live in with your name, bus pass etc

It makes proofing you were there easier and less hassle when claiming vrt exemption.

Good luck, and please buy something special, make use of their cheaper tax system and make use of not having to pay vrt!

mgbgt1978

Op, as you already said it is a lot of hassle(and much dearer) to insure a car not originally registered in the Uk.
Also if you were to try and sell the car in the Uk next year (on UK plates) it would be worth very little as even a Uk resident would pay a lot more to insure it.

bear1

Remember though that if you get the VRT exemption then for one full year you cannot sell the car on. If you do then VRT will be payable.

sunnysoutheast

lynchy wrote: »

Thanks a million Conor. I'm really thinking of getting one now if this is the case. Another fella told me that I can only not pay VRT for a year and once my year back home is up I will have to pay the full whack. Do you know anything about this. Much appreciated

It may be worth downloading the "vrt tor" form from the Revenue website from here:

http://www.revenue.ie/en/tax/vrt/leaflets/tax-relief-transfer-residence.html

as that will detail the evidence you have to provide. From memory, it is bank/cc statements from the UK showing day-to-day living, some sort of property disposal (e.g. lease termination), purchase receipt/tax/insurance in the UK, fuel receipts and a ferry ticket to import it.

Will you be paid in Ireland or the UK (they also ask for UK payslips/P45). Note that as per the above there is no exemption if working abroad for <1 year.

Finally, you will have to prove that you are transferring your residence - so new job offer, rent contract, etc. in Ireland.

My guess is that you should be able to do this, but I would double check your particular circumstances.

You cannot sell or trade-in an exempted car for 12 months without paying the VRT.

Esel

Be very sure that you fulfil Revenue's definition of resident abroad.

lynchy

Thanks Guys,

These are all very helpful ideas and I appreciate it. I have another 2 or 3 weeks left in my insurance so I'm stepping up the game now. Does anyone have any good websites to look at for cars etc.

lynchy

Does anyone know if I have to have the car a year or can I work here for a year and then only have the car say 10 months

Third_Echelon

cargiant.co.uk has some lovely cars on it....

mgbgt1978

lynchy wrote: »

Does anyone know if I have to have the car a year or can I work here for a year and then only have the car say 10 months

12 months I'm afraid.

Esel

You have to be able to prove you used it too - insurance, mileage increase etc.

@lynchy Have a look at the transfer of residence page on http://www.revenue.ie/en/tax/vrt/leaflets/transfer-residence-duty-free-vehicles.html

Students do not qualify, and be sure you meet the residency requirements. The are not as simple as they might seem.

mgbgt1978

Sorry Op, Esel is correct....6 months. Oops.

Esel

mgbgt1978 wrote: »

Sorry Op, Esel is correct....6 months. Oops.

Found out I was wrong - it is 12 months, so I did a ninja edit.

Sheldons Brain

If you've moved on a contract of definite duration and you've always known that you are coming back, then you'll never be normally resident in the UK and will not have any entitlements to import a car.

lynchy

Thanks for all the info guys,

Its going to be close whether Ill be here for the full year or not. I've been here 2 months and the remainder of the project is about 9 months. For anyone who is interested, the revenue call me yesterday and explained that You will need to be living a year or even close to a year but they do look at each individual case. As regards the records of the car etc. I was told that they will only look at the previous 6 months for proof so that sounds a bit easier. Hopefully it will work out. All I need to do is find a car now.