# Action to take before the Budget to avoid tax increases



## cork (20 Nov 2012)

Taxing a car from Jan'13

If you motor tax is out on the end on December'12 - tax you vehicle from 1st December to close of business on budget day to avoid any possible tax increases.


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## Brendan Burgess (20 Nov 2012)

Hi cork

Good thinking!  I have renamed the thread in case there are other ideas. 

*
Realise Capital Gains*

The rate of CGT may be increased in the budget. If you are planning to sell shares anyway, it would probably be better to sell them before the budget. 

Is it possible that they might interfere with losses forward? Would it be worth realising gains and using them against realised losses?  The transaction costs probably don't justify this but, again, if you are planning such a transaction in the near future, do so before the budget.


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## pudds (20 Nov 2012)

*Deposit Interest Upfront.*

Now that Nationwide uk have reduced interest rate on easy access to 2.50% 

I'm thinking of opening an KBC Interest up front account, rate 3.20% to avoid any increase in dirt tax.  

Are there any pitfalls to look out for in doing this.


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## STEINER (20 Nov 2012)

pudds said:


> Now that Nationwide uk have reduced interest rate on easy access to 2.50%
> 
> I'm thinking of opening an KBC Interest up front account, rate 3.20% to avoid any increase in dirt tax.
> 
> Are there any pitfalls to look out for in doing this.



I think in this case, its the DIRT rate applicable when the interest is paid, so looks ok.


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## becky (20 Nov 2012)

cork said:


> Taxing a car from Jan'13
> 
> If you motor tax is out on the end on December'12 - tax you vehicle from 1st December to close of business on budget day to avoid any possible tax increases.


 

It's not possible if you have already paid the motor tax until the end of December already.


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## Brendan Burgess (20 Nov 2012)

You will get notification in early December to renew during December, and you should renew immediately. I doubt if they will pursue you for any increase in the budget.


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## Brendan Burgess (20 Nov 2012)

pudds said:


> Now that Nationwide uk have reduced interest rate on easy access to 2.50%
> 
> I'm thinking of opening an KBC Interest up front account, rate 3.20% to avoid any increase in dirt tax.
> 
> Are there any pitfalls to look out for in doing this.



How much might you save? 



deposit|€100k 
Interest rate|3%
Interest paid half yearly|€1,500
Increase in Dirt by 5%|€75
It is probably not worth taking any action unless


you have a very large sum on deposit and
interest is paid yearly
I would imagine that interest is paid monthly on most large deposits. 



If you have a substantial amount of interest due, you should probably close your bank account before the budget and the interest will be paid to you then. You can open it again the following day. (Assuming there are no penalties for early encashment)


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## cork (20 Nov 2012)

becky said:


> It's not possible if you have already paid the motor tax until the end of December already.




You can tax then from Jan'13 in DEC.

Just do it before or on budget day


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## Time (20 Nov 2012)

Brendan Burgess said:


> You will get notification in early December to renew during December, and you should renew immediately. I doubt if they will pursue you for any increase in the budget.


Those letters are held back so budget increases can be applied.


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## becky (20 Nov 2012)

Apologies I misunderstood.  I was told that you can renew online using last year pin as its the same one you get every year (have not tried it myself), so yes that might work.  Once car tax doesn't decrease .


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## Time (20 Nov 2012)

The pin changes at each renewal and only be used once. 

The new pin won't issue until after the budget.

Tax discs for January 2013 cannot be issued until the notice is issued from Shannon.


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## Dermot (20 Nov 2012)

I have never seen the situation where any of the Motor Tax increases took effect from Jan of the following year since the Budgets started to be announced in December. The Motor tax increases have generally taken effect not earlier than 1st March. I do not see this be any different on this occasion.


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## cork (21 Nov 2012)

Last year - increses from Jan'12 were introduced the day after the budget.


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## pudds (21 Nov 2012)

From 2011



> *Motor tax rates*
> 
> Motor tax rates for all categories will increase. (1 January 2011)
> 
> *[broken link removed]*


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## Palerider (21 Nov 2012)

Have read this and am confused, If I go to my motor tax office before the budget, in December with a car whose tax is expiring Dec 31 2012 can I or can I not tax the car at todays rates..??


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## Time (21 Nov 2012)

No. You have to wait for the renewal document in the post which will not be sent until after the budget.


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## Palerider (4 Dec 2012)

Decided to check with local motor tax office, my car tax expires end of December, I'm now just back from successfully taxing my car until Dec 2013 beating the expected Budget motor tax increases, this is definitely worth doing and is a real cash saving .
I don't know how long you have but this afternoon and tomorrow pre budget may allow you time to organise, grab it while you can if your tax expires Dec 12.


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## Tired Paul (4 Dec 2012)

I've just paid car tax today for my car - tax is up in Jan 13. If you use the PIN retrevial on MotorTax.ie you will get another PIN vai email. Sent email at 9am this morning and got a mail a few minutes later. Paid online so now just to wait for the disc in the post.


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## bazermc (4 Dec 2012)

cork said:


> Taxing a car from Jan'13
> 
> If you motor tax is out on the end on December'12 - tax you vehicle from 1st December to close of business on budget day to avoid any possible tax increases.


 
My motor tax expiring 31st December, how do I physically renew it early?  I havent received a renewal notice!!!!!


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## STEINER (4 Dec 2012)

bazermc said:


> My motor tax expiring 31st December, how do I physically renew it early?  I havent received a renewal notice!!!!!



Go online and request a PIN by email. Log in and renew for 2013 at 2012 rates.

My wife renewed annual motor tax for 2013 at 00.01 am Saturday December 1st 2012.


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## bazermc (4 Dec 2012)

Motor tax rate increases are usually effective from 1 January XXXX, so I dont see how this is going to save anything, it will actually cost you, as you are paying tax earlier than need be.  Only items like fags, drink and fuel go up on budget night by way of special resolution.


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## gipimann (4 Dec 2012)

The increases might be effective from 1/1/xxxx, but they are applied by the local authorities/motortax.ie as soon as they are known (i.e. after tomorrow) for January renewals.

People renewing tax on a vehicle after budget day (for tax due from 1/1/2013) will be charged the new rates, not the current rates.   This happened last year.   A poster on boards.ie challenged this with the local motor tax office but got nowhere.

Renewing today will avoid the increase.


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## Palerider (4 Dec 2012)

Great tip to do it online, I have another car tax expires end January '13, I tried to retrieve my pin and it will not allow me..this is the message.....am I screwed on this car..?

 '' The tax on this vehicle is not due. You will receive a renewal notice with PIN in the month your vehicle tax expires..''.


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## Time (4 Dec 2012)

Only works for tax expiring this month.


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## Palerider (5 Dec 2012)

€45 saved on my wifes car tax by taxing before the budget increases today, that's the new €1 per bottle of wine tax paid on 45 bottles of wine at the off licence....what a bargain !


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## STEINER (11 Dec 2012)

STEINER said:


> Go online and request a PIN by email. Log in and renew for 2013 at 2012 rates.
> 
> My wife renewed annual motor tax for 2013 at 00.01 am Saturday December 1st 2012.



My wife got her 2013 tax disc last week in the post costing €220 or €225, I forget exactly.

Yesterday, she got a 2013 renewal notice in the post for €280, straight to the recycling bin.

Wouldn't you think that the system they use would recognise that she paid online on 1st December and that they had already sent out her 2013 tax disc.


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## bazermc (11 Dec 2012)

+1 

I renewed the morning of the budget, my motor tax was due from 1 January and I paid €660 

I then got my renewal in the post today saying €710 is due?

However I still havent received my tax disc. Is it possible the system will recognise that €50 is still due and not issue the disc until then?


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## Time (11 Dec 2012)

You never know with that lot.

If you managed to pay at the lower rate you should get your disc, it can take a week.


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## STEINER (11 Dec 2012)

bazermc said:


> +1
> 
> I renewed the morning of the budget, my motor tax was due from 1 January and I paid €660
> 
> ...



I'd  give it another few days for the disc to arrive.  As your payment of €660 was accepted, I'd say thats all it cost.


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## gipimann (11 Dec 2012)

I renewed the day before the budget - got the tax disc and the renewal notice  (with the new rates) last Friday.


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## bazermc (12 Dec 2012)

*Update;*

I got my tax disc this mornign in the post after paying and renewing at pre budget rates.

The tax disc has both the amount I paid (660 euro) and the post budget liability (710 euro) printed on the disc  However the tax dics cover note stated no arrears were due!!!!!

Should I be concerned?


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## Time (12 Dec 2012)

Is the expiry date correct?


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## bazermc (12 Dec 2012)

Time said:


> Is the expiry date correct?


 
yes expiry date is fine, only item that concerns me is that there are two amounts printed on the disc, what I actually paid and what my post budget renewal stated was due


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## gipimann (12 Dec 2012)

Sounds like they didn't print your disc until after the new rates were loaded onto their system, so had to include both rates on it.   My disc shows the old rate only.

If the cover note said no arrears due, then I'd say that's the end of it.


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