Tax Tip

Question

Q: I am living in Dundalk and due to start a new job with a company in Newry as a sales representative for Northern Ireland.  My new employers are providing me with a UK registered company car. Is it necessary to pay VRT or register this car in Ireland, since this is where I reside?

A: Yes, in normal circumstances your employer would need to import this car into Ireland and pay the appropriate Vehicle Registration Tax to the Revenue Commissioners.

However, there are exceptions granted on a concessional basis where you are provided with a foreign registered company car for the purpose of carrying out your duties in another country.

On the basis that your job is solely as a sales representative for Northern Ireland and that all your work is in respect of customers in Northern Ireland then you may be able to claim for an exemption from VRT and also the requirement to import the company car to Ireland.

In order to seek relief from VRT you would need to contact your local vehicle registration office.  In granting the exemption the Revenue will require you to prove that you are employed by a Northern Ireland company and that the vehicle is owned by your employer.  They will also require a copy of your employment contract and work documents to prove your duties are solely in Northern Ireland and a copy of your vehicle registration documents and insurance certificate.

It is important to note that if the Revenue does grant such an exemption from VRT in these circumstances, the exemption relates only to you therefore your partner or spouse is not authorised to drive the car in Ireland

The advice in this column is specific to the facts surrounding the questions posed.  Neither FPM Accountants LLP nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.