Road Tax Savings

Hi All

First post here for me - so hope I do it right! This isn't my idea, saw it elsewhere, so just passing it around.

As we all know, the Road Tax rules are changing next year from April 2008. This means that for some, the cost may go up (esp. if your car is pre 2006 or 'big'). I believe this will be true for any cars that are currently Band F.

However - if like me, your car is coming up for tax now (before end of Sept) - then if you tax just 6 months - it will cost you £115.50 (as opposed to 12 months at £210). This means that your tax will next come up in Mar 2009, just before the big jump. My Band F car will be £300 in April 2009, but still £210 at Mar 2009. Giving a saving of just over £80 (£90 less than April, but paying slightly more for the 6 month now). I would also save a little on the next tax as I would be getting it at £300 (at Mar 2010), instead of £310 (April 2010 cost).

Hope that makes sense!

Savings could be even bigger if you have a bigger car. For my wife's Lexus (2004, so was exempt of the higher rates before the recent changes) - it is currently Band F, but will be K in 2009, and then M in 2010. In 2008 it costs £210, 2009 will be £300, and 2010 will be £455. So for this one, moving the tax disc to Mar 2009 would save £90 in the first year, and then £155 in the second. I appreciate the it doesn't 'save', but just delays the inevitable - but putting it off later is always better!

Unfortunately my wife's road tax is due on April 2009 - the first month the tax increase comes in! I'm trying to find out if I can just buy the tax 1 month early, even if I need to effectively pay twice for Mar - would cost £17.50 = £210/12 extra, but would save the £90, and then £155 later.

Good luck all.

Chi