Got wheels, will drive – but can’t afford it? If you are a learner driver and insurance costs are crippling you, it’s not going to be big news that getting a full licence will cut your premium. However, did you know it could reduce it by 30%?
Speaking about what young people can do to cut their costs, Jonathan Hehir, managing director of Coverinaclick.ie says: “The Consumer Price Index recently revealed that motor insurance is down 11.7%, between January 2017 and January 2018. However, if you speak to any young driver (under 25) or their parents, they will tell you that insurers are still looking for big money for these policies.
“Speaking to the same young drivers and/or parents has made us realise that people are simply unaware of the extent to which lessons and experience can reduce a premium. We believe if people knew how much such measures could help towards reducing their costs, they might be a bit more proactive in applying for their tests. Moving from a provisional to a full licence alone can reduce premiums by between 30% and 80%.” The figures do add up.
Example one
Let’s take Fiona Murphy. She is a 21-year-old student driving a 2006 Renault Clio 1.2 litre engine. She is just starting out on her provisional licence and has no driving experience. At this point in time, Fiona is looking at the following costs for her insurance:
• €3,942 > Comprehensive cover.• €3,325 > Third-party fire and theft.If, on the other hand, Fiona had achieved her full driving license with one year named-driver experience, she would have the following costs:
• €1,830 > Comprehensive cover.• €1,415 > Third-party fire and theft.That amounts to 54% difference for comprehensive cover and 57% difference for third-party fire and theft.
Example two
Shane Murphy is 19 years old and he too is driving a 2006 Renault Clio 1.2 litre engine. Starting out on a provisional license with no driving experience, insurance costs are as follows:
• €4,855 > Comprehensive cover.• €4,165 > Third-party fire and theft.If Shane had a driving licence, however, with two years no-claims bonus, costs would be:
• €1,830 > Comprehensive cover.• €1,420 > Third-party fire and theft.That amounts to 62% difference on comprehensive cover and 66% on third-party fire and theft.
Young people also need to consider waiting times for driving tests. Recent figures from the RSA show that waiting times throughout the country vary from an average of eight weeks in Birr, Co Offaly, to 19 weeks in Nenagh, Co Tipperary.
Jonathan commented: “Depending on where you are in the country, you might have a bit of a wait from the time you apply to when you actually get to sit the test, so be mindful of this. It’s not always necessary or advisable to wait until you have your lessons done.
“For some drivers it might be best to apply and use the wait time in the interim to get the necessary lessons under their belt. The average national pass rate is 53% so you should remember this too: you might not get it first time round,” he advises. CL
>> Top tips for young and/or new drivers
1. Get lessons. Discounts will be offered by certain insurers for drivers who have completed 10 lessons from a qualified driver instructor.2. If possible plan ahead. Try to get experience by being added to a parent’s policy for a period, to help get the driving test. While traditionally most insurers will insist on a full year, some providers offer discounts to young drivers who have six months’ experience on their parent’s policy.3. Look at the model and engine size of the car you are going to buy. Don’t be afraid to ask for different quotes for various cars.4. Check the differences between third-party fire and theft and comprehensive, according to the value of the vehicle.5. If you want to teach your teenager to drive, cost out the various alternatives – adding them to your or your spouse’s cover or arranging separate cover for them. Don’t assume that one will be cheaper than the other.6. Remember that some insurance companies specialising in insuring young drivers are only available through a broker.“Amateur” Airbnb Hosts Could Be Hit With Penalties for Non-Compliance
Farming families may be in the ideal situaltion to avail of extra income through AirBnB. While some have the extra space – or even a separate house on the land – farmers can also promote the option of being at one with the Irish countryside. Just imagine: the tourists would love it.
If you are currently renting through AirBnB or considering it, then it is important to be tax compliant and declare this income to the Revenue. Despite many notices from AirBnB, experts at Taxback.com say that a comparative analysis of their own client database, with new stats released by Airbnb for the Irish market, has pointed towards probable widespread non-disclosure of hosting activities when it comes to tax obligations.
The tax refund specialists say they believe the figures suggest that while “professional” hosts are more likely to get their tax affairs in order, people who rent out their property or rooms less frequently appear to be slow at coming forward.
Barry Flanagan, director at Taxback.com explained the current situation: “While Airbnb is growing in popularity in this country, year on year, and the number of hosts continues to increase, anecdotal evidence leads us to believe that simply not enough people are declaring this income to Revenue – quite probably because they don’t know they have to.
“This is despite Airbnb themselves highlighting this. Our concern is that this level of non-compliance will draw the attention of Revenue, as Airbnb reports this income to Revenue annually, and unsuspecting and/or unknowing hosts will be hit with penalties and punishment as a result. Whether you do it once or 10 times, the Revenue can access your data just as easily from Airbnb.”
Taxback.com say the top five tax deductible expenses for Airbnb hosts are electricity; broadband; gas; host fee; cleaning fee. Other common allowables include:
mortgage interest, if the host owns the property; rent paid, if the host sublets the property; repairs and maintenance; services charges; insurance costs; accommodation costs (towels, meals, tools); any associated professional fees, for instance, your Taxback.com fee.
Got wheels, will drive – but can’t afford it? If you are a learner driver and insurance costs are crippling you, it’s not going to be big news that getting a full licence will cut your premium. However, did you know it could reduce it by 30%?
Speaking about what young people can do to cut their costs, Jonathan Hehir, managing director of Coverinaclick.ie says: “The Consumer Price Index recently revealed that motor insurance is down 11.7%, between January 2017 and January 2018. However, if you speak to any young driver (under 25) or their parents, they will tell you that insurers are still looking for big money for these policies.
“Speaking to the same young drivers and/or parents has made us realise that people are simply unaware of the extent to which lessons and experience can reduce a premium. We believe if people knew how much such measures could help towards reducing their costs, they might be a bit more proactive in applying for their tests. Moving from a provisional to a full licence alone can reduce premiums by between 30% and 80%.” The figures do add up.
Example one
Let’s take Fiona Murphy. She is a 21-year-old student driving a 2006 Renault Clio 1.2 litre engine. She is just starting out on her provisional licence and has no driving experience. At this point in time, Fiona is looking at the following costs for her insurance:
• €3,942 > Comprehensive cover.• €3,325 > Third-party fire and theft.If, on the other hand, Fiona had achieved her full driving license with one year named-driver experience, she would have the following costs:
• €1,830 > Comprehensive cover.• €1,415 > Third-party fire and theft.That amounts to 54% difference for comprehensive cover and 57% difference for third-party fire and theft.
Example two
Shane Murphy is 19 years old and he too is driving a 2006 Renault Clio 1.2 litre engine. Starting out on a provisional license with no driving experience, insurance costs are as follows:
• €4,855 > Comprehensive cover.• €4,165 > Third-party fire and theft.If Shane had a driving licence, however, with two years no-claims bonus, costs would be:
• €1,830 > Comprehensive cover.• €1,420 > Third-party fire and theft.That amounts to 62% difference on comprehensive cover and 66% on third-party fire and theft.
Young people also need to consider waiting times for driving tests. Recent figures from the RSA show that waiting times throughout the country vary from an average of eight weeks in Birr, Co Offaly, to 19 weeks in Nenagh, Co Tipperary.
Jonathan commented: “Depending on where you are in the country, you might have a bit of a wait from the time you apply to when you actually get to sit the test, so be mindful of this. It’s not always necessary or advisable to wait until you have your lessons done.
“For some drivers it might be best to apply and use the wait time in the interim to get the necessary lessons under their belt. The average national pass rate is 53% so you should remember this too: you might not get it first time round,” he advises. CL
>> Top tips for young and/or new drivers
1. Get lessons. Discounts will be offered by certain insurers for drivers who have completed 10 lessons from a qualified driver instructor.2. If possible plan ahead. Try to get experience by being added to a parent’s policy for a period, to help get the driving test. While traditionally most insurers will insist on a full year, some providers offer discounts to young drivers who have six months’ experience on their parent’s policy.3. Look at the model and engine size of the car you are going to buy. Don’t be afraid to ask for different quotes for various cars.4. Check the differences between third-party fire and theft and comprehensive, according to the value of the vehicle.5. If you want to teach your teenager to drive, cost out the various alternatives – adding them to your or your spouse’s cover or arranging separate cover for them. Don’t assume that one will be cheaper than the other.6. Remember that some insurance companies specialising in insuring young drivers are only available through a broker.“Amateur” Airbnb Hosts Could Be Hit With Penalties for Non-Compliance
Farming families may be in the ideal situaltion to avail of extra income through AirBnB. While some have the extra space – or even a separate house on the land – farmers can also promote the option of being at one with the Irish countryside. Just imagine: the tourists would love it.
If you are currently renting through AirBnB or considering it, then it is important to be tax compliant and declare this income to the Revenue. Despite many notices from AirBnB, experts at Taxback.com say that a comparative analysis of their own client database, with new stats released by Airbnb for the Irish market, has pointed towards probable widespread non-disclosure of hosting activities when it comes to tax obligations.
The tax refund specialists say they believe the figures suggest that while “professional” hosts are more likely to get their tax affairs in order, people who rent out their property or rooms less frequently appear to be slow at coming forward.
Barry Flanagan, director at Taxback.com explained the current situation: “While Airbnb is growing in popularity in this country, year on year, and the number of hosts continues to increase, anecdotal evidence leads us to believe that simply not enough people are declaring this income to Revenue – quite probably because they don’t know they have to.
“This is despite Airbnb themselves highlighting this. Our concern is that this level of non-compliance will draw the attention of Revenue, as Airbnb reports this income to Revenue annually, and unsuspecting and/or unknowing hosts will be hit with penalties and punishment as a result. Whether you do it once or 10 times, the Revenue can access your data just as easily from Airbnb.”
Taxback.com say the top five tax deductible expenses for Airbnb hosts are electricity; broadband; gas; host fee; cleaning fee. Other common allowables include:
mortgage interest, if the host owns the property; rent paid, if the host sublets the property; repairs and maintenance; services charges; insurance costs; accommodation costs (towels, meals, tools); any associated professional fees, for instance, your Taxback.com fee.
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