Looking at buying a Ford Ranger...

Hi,

I'm looking at buying a Ford Ranger 2.2 TDCi for use with my work. As I will be purchasing the vehicle will it need to be taxed and insured privately even though I would be using it to assist myself with work? If I can buy the vehicle personally, will a company then be penalised with benefit in kind even though I have bought it?

Alan Bird (Limerick)

Mar 2020 Filed under: taxation

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Expert answer

Hi Alan,

If you buy the car yourself, then there’s no BIK issue to worry about, even if you are using it for work. As for taxing it, if you’re strictly and only using it for work purposes, then it can be taxed as a commercial vehicle and will set you back a mere €333 in motor tax every year. If you are using it for personal use as well, then strictly speaking you’re supposed to tax it as a private car, which means taxing it on the engine capacity, which means an annual motor tax bill of €994. Also, you need to openly declare to your insurer what the vehicle is being used for.

Neil Briscoe - Complete Car Advisor
@neilmbriscoe