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Saving For a Space Ship

More Uk Gov Credit / Debt - Car Tax Monthly Dd Payments + 5% Charge

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From Nov 1st 2014, monthly DD credit available on car tax from DVLA

https://www.gov.uk/government/news/direct-debit-and-abolition-of-the-tax-disc

DVLA will offer motorists the ability to spread their vehicle tax payments should they wish to do so. For vehicle tax starting from 1 November 2014, motorists will be able to pay vehicle tax by direct debit annually, biannually or monthly. There will be no additional handling fees for annual payments but to limit the impact on the public finances there will be a small surcharge of 5% of vehicle tax for biannual and monthly payments. This is half of the 10% surcharge that is currently applied to 6 monthly tax discs and which has been in existence for a number of decades.
Edited by Saving For a Space Ship

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I need to tax, my van but must wait until the 1st of the month because if I taxed it from today I would lose from the first of the month. Since there are no longer paper discs being issued I see no good reason that it should be this way.

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I need to tax, my van but must wait until the 1st of the month because if I taxed it from today I would lose from the first of the month. Since there are no longer paper discs being issued I see no good reason that it should be this way.

Oh it is indeed a piss take.

As is how they've changed the rules about tax when you sell a car.

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What`s the new rule? I have not heard of this one

What happens to your road tax when you sell your car?

Under the new car tax system, the process of selling your car has changed. Any remaining road tax will not transfer to the new owner with the vehicle.

Instead, the seller can get a road tax refund on any tax remaining on the vehicle, while the buyer has to pay to re-tax the car.

The tax refund on a sold car will be sent automatically when the DVLA receives notification that the car has been sold, scrapped, exported or taken off the road with a Statutory Off Road Notification (SORN).

Read more: http://www.autoexpress.co.uk/car-news/consumer-news/88361/no-more-tax-disc-uk-vehicle-excise-duty-road-tax-changes-explained#ixzz3J4V2yJ9J

The problem that's getting motorists riled centres around the refund you get on outstanding road tax when you sell your car. When ownership of a vehicle is transferred the previous owner gets a refund on any outstanding road tax but that refund is calculated from the beginning of the next month. The new owner, on the other hand, has to tax the car anew and their bill is calculated from the beginning of the current month.

What this means is that the Government effectively collects two lots of tax on the car for the month where ownership is transferred, one from the new owner who pays for that month and one from the previous owner who doesn’t get the tax for that month included in their refund. It's sneaky stuff and should give a useful boost to the exchequer, but at the expense of motorists.

Edited by SarahBell

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If they manage to get a large chunk paying monthly, suddenly that £50 car tax increase doesn't look so big when it's broken down into a monthly amount....

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What happens to your road tax when you sell your car?

Under the new car tax system, the process of selling your car has changed. Any remaining road tax will not transfer to the new owner with the vehicle.

Instead, the seller can get a road tax refund on any tax remaining on the vehicle, while the buyer has to pay to re-tax the car.

The tax refund on a sold car will be sent automatically when the DVLA receives notification that the car has been sold, scrapped, exported or taken off the road with a Statutory Off Road Notification (SORN).

Read more: http://www.autoexpress.co.uk/car-news/consumer-news/88361/no-more-tax-disc-uk-vehicle-excise-duty-road-tax-changes-explained#ixzz3J4V2yJ9J

The problem that's getting motorists riled centres around the refund you get on outstanding road tax when you sell your car. When ownership of a vehicle is transferred the previous owner gets a refund on any outstanding road tax but that refund is calculated from the beginning of the next month. The new owner, on the other hand, has to tax the car anew and their bill is calculated from the beginning of the current month.

What this means is that the Government effectively collects two lots of tax on the car for the month where ownership is transferred, one from the new owner who pays for that month and one from the previous owner who doesn’t get the tax for that month included in their refund. It's sneaky stuff and should give a useful boost to the exchequer, but at the expense of motorists.

Very sneaky indeed ...milking by stealth

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What happens to your road tax when you sell your car?

Under the new car tax system, the process of selling your car has changed. Any remaining road tax will not transfer to the new owner with the vehicle.

Instead, the seller can get a road tax refund on any tax remaining on the vehicle, while the buyer has to pay to re-tax the car.

The tax refund on a sold car will be sent automatically when the DVLA receives notification that the car has been sold, scrapped, exported or taken off the road with a Statutory Off Road Notification (SORN).

Read more: http://www.autoexpress.co.uk/car-news/consumer-news/88361/no-more-tax-disc-uk-vehicle-excise-duty-road-tax-changes-explained#ixzz3J4V2yJ9J[/size]

The problem that's getting motorists riled centres around the refund you get on outstanding road tax when you sell your car. When ownership of a vehicle is transferred the previous owner gets a refund on any outstanding road tax but that refund is calculated from the beginning of the next month. The new owner, on the other hand, has to tax the car anew and their bill is calculated from the beginning of the current month.[/size]

What this means is that the Government effectively collects two lots of tax on the car for the month where ownership is transferred, one from the new owner who pays for that month and one from the previous owner who doesn’t get the tax for that month included in their refund. It's sneaky stuff and should give a useful boost to the exchequer, but at the expense of motorists.

The cynic in me says the blossoming market for PCPs will provide plenty of cars whose ownership will almost certainly change in the next few years, whether it be the original PCP holder or another owner when the car heads down the food chain.

Agree with post #7 too.

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d/d and monthly d/d sounds like a good idea. If 5% surcharge is less than the current 10% surcharge that's also a good idea and for anyone paying in installments it's probably the cheapest loan they'll ever get. Though I'm not sure why when most companies make reductions for paying by d/d 'cause it saves them alot of admin cost. Govt. shouldn't be able to do the same.

Surprised anyone selling/buying a 2nd hand car is bothered about losing 1/12th of £0 to a couple of hundred quid though in lost road tax. One would imagine they'd be more concerned about the ££thousands it's costing them to change vehicle! Strange what some people get irate about

Edited by R K

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What this means is that the Government effectively collects two lots of tax on the car for the month where ownership is transferred, one from the new owner who pays for that month and one from the previous owner who doesn’t get the tax for that month included in their refund.

Very clever. This means that the gov will be getting an extra 12th on top of what they get now. That's about 8%.

Running out of money? Just jack up your revenues a bit more. That's their attitude.

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One would imagine they'd be more concerned about the ££thousands it's costing them to change vehicle! Strange what some people get irate about

Would you be happy to be burgled if they only stole a DVD at a time?

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