Written answers

Thursday, 5 June 2014

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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32. To ask the Minister for Finance if the use of a commercial vehicle by a self-employed person, while carrying tools to travel from their registered office to their clients is considered private use by the Revenue Commissioners; and if he will make a statement on the matter. [24060/14]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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33. To ask the Minister for Finance if he will address an issue raised in correspondence with the Revenue Commissioners by a person (details supplied) in County Cork; if the person is entitled to a refund of tax; and if he will make a statement on the matter. [24063/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 32 and 33 together.

I am informed by the Revenue Commissioners that this taxpayer's case is complicated by the fact that supplementary returns and additional claims were made after the original tax returns were submitted.  As a result, he received several notices of assessment and several refunds to himself and his spouse.  The taxpayer has not, however, made a declaration of Preliminary Tax in respect of  2013, which he was required to do by 31 October last, and as a consequence has an amount of €2,739 retained and credited to Preliminary Income Tax   The taxpayer should now make  a declaration of Preliminary Income Tax liability which will enable this amount to be reconciled and any excess arising to be refunded.

Regarding the use of a commercial vehicle by a "self-employed" person, it appears from the details supplied that the individual is an employee/director of a company and that the question relates to the calculation of a benefit-in-kind in respect of the private use of the vehicle. While the precise type of vehicle is not disclosed, it is assumed that it is a van as defined in the benefit in-kind legislation. Generally speaking, the use of a van by an employee or director to travel between places of work is considered to be business rather than private use of the vehicle.  This is on the basis that the expense associated with such travel is incurred necessarily in the performance of the duties of the employment.

Whether a journey is undertaken in the performance of the duties of an employment depends on the particular facts of the case. So, while as a general rule travel between the registered office of a company and a client's premises would be a business journey, this need not always be the case.  For example, if the registered office of the company was also the home of the employee, the travel will generally have a private purpose, i.e. that of travelling to and from home.   The fact that the vehicle is used to carry tools does not change the purpose of the journey or make it business use.

For the sake of completeness I should add that no taxable benefit will arise in respect of the private use of company van where all of the following conditions are met:

-the van is supplied by the employer to the employee for the purposes of the employee's work

-the employee is required by the employer to bring the van home after work

-apart from travelling from work to home and back to work, other private use of the van by the employee is forbidden by the employer, and there is in factno other private use

-in the course of his or her work, the employee spends at least 80% of his or her time away from the premises of the employer to which he or she is attached.

This exemption applies to company vans only. There are specific criteria for determining what constitutes a van for the purposes of the benefit-in-kind legislation. These are set out in detail on the Revenue website at .

No taxable benefit will arise in respect of the private use of a commercial vehicle with a gross vehicle weight (i.e. gross laden weight) in excess of 3,500kg.

Finally, I am informed by the Office of the Revenue Commissioners that the taxpayer has been in continuing written correspondence with his Revenue district.  He has been offered a review of the handling of his case under Revenue's Complaint and Review Procedures.  He has raised some queries regarding the conduct of the review, which are being dealt with in correspondence with him.   He has also been invited to meet with officials in order to clarify matters in his own case, but he has not yet availed of this opportunity.  In this respect, I would invite him to contact Mr Eoin Ó Domhnaill at 021-6027225.

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