New Car Tax Rules

[richmillions]

Just came across this, the main thing I didn't know was when buying/selling the tax will be no longer transferred with the vehicle and the new keeper has to get it taxed immediately to use on the road.

 

https://www.gov.uk/government/news/vehicle-tax-changes

[WhackyWill]

Bet it wont go down..??

[Steel Lynx]

That's ridiculous! What's the point of ending a cars tax just because you sell it? It just creates more of a headache for someone buying it.

[st519]

Another stealth tax, thanks for the heads up

[Ekona]

Actually makes a lot of sense. No more ambiguity, no more wondering if you've git a dodgy disc (it does happen), just a plain rule that keys everyone know where they stand. Paying monthly is a boost too, if you're rubbish at saving.

[Mopedmark]

More skulduggery

[ianphampton]

There's no info on that web page about refund on the tax when you sell it. Does this imply that DVLA won't give it back to you - or are they just hoping that sellers won't bother with the reclaim so they score the unused tax?

[Ekona]

"If you have been paying your tax annually or every 6 months, you will get a refund for any full calendar months left on the tax period when you tell DVLA you no longer require tax"

 

Is that not it?

[Ekona]

But yeah, I guess they expect most people to just do it monthly via DD from now on. I mean, why wouldn't you?

[ATTAK Z]

Don't do DD myself ... I like to be in control

[Ekona]

You mean, like you are with DD when you can cancel at any time without penalty, and have a bucketload of law weighed heavily in your favour in case of a ****-up?

[ATTAK Z]

What about the the utility companies who take excessive amounts and get the interest on your money?

[Ekona]

That's not the same thing. That's them guesstimating what you'll be using, and is down to the individual to sort. The VED system is not even comparable.

 

It's the same as paying for your TV licence by DD. Or a magazine subscription. Or anything else, basically.

[Watshot]

But yeah, I guess they expect most people to just do it monthly via DD from now on. I mean, why wouldn't you?

 

Normally I would, but isn't it actually dearer to pay by DD? Goes against the general rule of thum eg. electricity bills etc.

 

A one off cheaper payment online in five minutes is no great hardship. A bit mean to those that may need to spread their payments, a continuation of the old, dearer, bi-six month payment I suppose.

 

Looking forward to ripping the clutter out of the corner of the screen though. Now if only they could find a way of ditching the number plates the looks would be much improved....

[Ekona]

I don't think anyone knows what the monthly cost will be yet. I certainly wouldn't expect it to be cheaper though!

 

I can live with paying a couple of quid more, tbh. VED is the cheapest part of car ownership, for the vast majority of people.

[glrnet]

That's not the same thing. That's them guesstimating what you'll be using, and is down to the individual to sort. The VED system is not even comparable.

 

It's the same as paying for your TV licence by DD. Or a magazine subscription. Or anything else, basically.

Completely agree, we had a ludicrous amount demanded on a guestimate last year, simple phone call and happened to mention we'd been looking at other suppliers, problem solved

[marzman]

Wonder if there will be a grace period when buying the car and getting it home to tax it?

[leonk]

Wonder if there will be a grace period when buying the car and getting it home to tax it?

With the number of cars you get through I'd be looking at getting trade plates Chris.

Edited February 26, 2014 by leonk

[Ekona]

I would imagine 14 days, if I had to guess. Or maybe none, and you have to sort before collecting.

[ilogikal1]

I don't think anyone knows what the monthly cost will be yet. I certainly wouldn't expect it to be cheaper though!

 

I can live with paying a couple of quid more, tbh. VED is the cheapest part of car ownership, for the vast majority of people.

 

I seem to recall the monthly cost will equate to the same over all cost as buying 6 months at a time, which I seem to think is being dropped from 10% to 5% over paying annually.

 

There is, of course, a fair chance that this complete b*ll*cks that my brain has just made up to make me look stupid for sh*ts and giggles. It does that from time to time.

 

ETA:

 

Yay, my brain doesn't hate me today ;

 

http://www.hmrc.gov.uk/tiin/vehicle-excise-dd.pdf

 

At present, paying VED bi-annually attracts a surcharge of 10 per cent. Biannual and

monthly payments made by direct debit will attract a lower 5 per cent surcharge

Edited February 26, 2014 by ilogikal1

[Watshot]

Yep. That's where I'd seen it.

 

Seems odd when they are trying to get the majority on to DD to surcharge it. Don't help themselves.

[Ekona]

Good link, clears it all up nicely. At just 5% extra for going monthly over annually, that's a no brainer to me.

[Ponsonby]

It says that you can get a refund but only for full months unused.

So if you sell the car on 1st of the month both the old and the new owner will have to pay tax for that month - that's how I interpret it anyway.

[Flex]

I'd love to pay DD, get sick of paying lump sums, I normally have it saved but it's still not nice having to cough it up in one go, for 5% surcharge I'm in.

[Marcus01]

If you guys are right about 5% then that's better than paying twice a year currently which adds 10%, so yes its a no brainer.