Hi Hilary,

Well, it's not a scheme as such it's just that the category of N1 vehicles, or those designed for the carriage of goods and weighing less than 3.5 tonnes (commercial vehicles in other words), doesn't specify the amount of seats you can have. 

Because of that loophole, car makers have been putting five-seat 4x4s on sale, sold as a commercial vehicle and therefore benefiting from lower vehicle registration tax and a cheaper purchase price. Which is all quite legal and above board. 

The only problem comes with use. Anyone is eligible to buy one of these vehicles and benefit from the lower rate of VRT but you have to be careful with motor tax. If you tax one as a commercial vehicle then it has to be used very strictly for commercial purposes only, and any personal use can land you with a massive fine. You can tax them as a private vehicle though, which is more expensive and requires some paperwork, but at least you're on the right side of the law.