Vehicle VED tax

[wack]

When I bought mine it was only 6 month old. Pre registered ex demo car. The dealer untaxed before I then taxed it myself. I paid 12 months rfl, they could not claim back part of the 1st years rfl which would have been 2k plus. Seems unfair but that's how it is.

How much did you have to pay, the 2nd year rate even though it was only 6 months old , surely to be fair if they're charging over £2000 the first year should be treated differently to normal, if you can't cash it in it's not VED it's tax

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[Charlie Brown]

The first year VED of £2135 is a one off payment when the car is bought new and is not refundable under SORN only the normal monthly/annual VED from year two onwards is avoidable through SORN

 

[wack]

The first year VED of £2135 is a one off payment when the car is bought new and is not refundable under SORN only the normal monthly/annual VED from year two onwards is avoidable through SORN

An extra car tax called VED then

 

[SteveS]

An extra car tax called VED then

I can't believe they did that...

 

[Harebear72]

Can I ask some help please people.

My car is a 2016 so I have the £550 a year tax bill - No Problem.

I was always under the impression that from March 2017 the cars registered then and under £40k were £145 a year - Fine. and the cars that were over £40k were £145 a year but had to pay an extra £325 a year for 4 years after before it was then the £145 a year.

Now here is the issue which I am trying to work out.

Last month I bought a Merc GLE for the wife as her daily. The car itself was £33k and as it was a 2018 registered car I knew I would be paying the £145 Plus the £325 for a few years. Now today I have had the log book come through and it shows the following;
"This vehicle is subject to additional rate of VED until 31/05/2024 as the original list price of the vehicle exceeded £40k"

I have also checked on DVLA website and it notes on there that the extra £325 in VED applies from the second time the car is taxed for 5 years.

So looking at this you do not see the benefit of cheaper tax until year 6. Can anyone with 2017 and 2018 cars that were over the £40k check that this shows the same on their V5

Im a bit annoyed now as I thought I would get the tax reduction in 2022 rather than 2024 !!!!!

 

[marks]

As far as I understand it, it has always been five years after first year tax so essentially keep paying additional premium until year 6. I remember doing the maths before I bought the car in 2017.

 

[Charlie Brown]

They’ve just made it all so dam complicated

 

[inky5.0]

Can I ask some help please people.

My car is a 2016 so I have the £550 a year tax bill - No Problem.

I was always under the impression that from March 2017 the cars registered then and under £40k were £145 a year - Fine. and the cars that were over £40k were £145 a year but had to pay an extra £325 a year for 4 years after before it was then the £145 a year.

Now here is the issue which I am trying to work out.

Last month I bought a Merc GLE for the wife as her daily. The car itself was £33k and as it was a 2018 registered car I knew I would be paying the £145 Plus the £325 for a few years. Now today I have had the log book come through and it shows the following;
"This vehicle is subject to additional rate of VED until 31/05/2024 as the original list price of the vehicle exceeded £40k"

I have also checked on DVLA website and it notes on there that the extra £325 in VED applies from the second time the car is taxed for 5 years.

So looking at this you do not see the benefit of cheaper tax until year 6. Can anyone with 2017 and 2018 cars that were over the £40k check that this shows the same on their V5

Im a bit annoyed now as I thought I would get the tax reduction in 2022 rather than 2024 !!!!!

That’s odd - I always thought it was the first 5 years from original date of registration...

 

[marks]

That’s odd - I always thought it was the first 5 years from original date of registration...

it's 5 years but you don't pay twice on first year after paying first year tax, so it's five years after first year

 

[wenklaw]

Well I decided against SORN as it would mean I need to talk to my insurance as I can’t see anything obvious in the T&C’s about if the vehicle needs valid VED or not. It does state about being roadworthy, SORN effectively means it isn’t legally allowed on the road but obviously I still have a valid MOT so I would need confirmation from my insurers. I think it’s probably just down to individual policies though and if the insurance company is okay with it or not.

Seen a fair few reports from people on the net about insurance companies being fairly clueless and even cancelling policies. For the sake of saving a couple of hundred pounds at best I figure it’s not worth the hassle.
I have always been one that needs official documentation, I’m not one for ‘ifs buts and maybes’ based on someone’s opinions and not fact regarding something as crucial as valid insurance.

 

[v8hgt]

Insurance companies are generally VERY happy for owners to SORN cars, especially if securely garaged away from prying yes. It effectively reduces their risk exposure to near zero while not lowering the premiums received.

 

[SteveS]

SORNd on 31/3/2020 and a week later its still showing as taxed and they've taken the monthly payment. They say it can take up to 5 days so messaged through the GOV website. Got an auto-response to say thanks but we're busy and won't be responding. And don't call unless its urgent

Obviously I understand the current situation but hopefully its clearer whether the car is taxed or SORNd when the time comes to drive it.

 

[v8hgt]

This happened once when I sorned mine on the last day of the month and didn’t cancel the direct debit. I got the money refunded automatically approx 1 month later. I suspect they process future DD’s on the last day of the month. You will be refunded. Now I sorn mine a couple of days before month end and always make sure I cancel the direct debit.

 

[SteveS]

This happened once when I sorned mine on the last day of the month and didn’t cancel the direct debit. I got the money refunded automatically approx 1 month later. I suspect they process future DD’s on the last day of the month. You will be refunded. Now I sorn mine a couple of days before month end and always make sure I cancel the direct debit.

Spot on. Refunded today and car now showing as SORNd

 

[Iron Duke]

My Bullitt is now just about one year old, its not being used much as my family are now working from home, made redundant or furloughed, this means I have access to other cars I can use. I was wondering if I sorned The Bullitt for a year would I still have to pay the extra VED for vehicles over £40K for a 5 year period, ie would the 5 years start again in a years time or would it be just 4 years?

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