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Car tax in March - can I avoid the increase?

martyp
martyp Posts: 1,069 Forumite
Part of the Furniture 500 Posts Combo Breaker
Hi all,

My car is a H reg and as such is on the old scheme that increases by a set amount each year at the time of the budget. Last few years I have been hit by the increase by getting my tax in late March (expires end of March). This year I want to avoid the increase by buying earlier in the month. Can someone advise on how soon I can get tax and whether I can get it before it goes up?

Many thanks

Comments

  • martyp
    martyp Posts: 1,069 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    I think I've figured it as far as:
    Earliest I can get tax is 5th March
    Tax for 2009-2010 will be £190 (increase of £5.

    To save £5 on a years tax I'd have to get the tax before the budget which in 2009 will be...?

    Does that sound right?
  • MX5huggy
    MX5huggy Posts: 7,168 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    No,

    The price of tax changes on the disc's that run from the 1st of April (ie expires end of March) to avoid the price rise you will have to buy a disc that starts 1st of March. To do this you will need to send your current disk off to the DVLA by the end of Feb, so you get the last month refunded and then by a new disk on or after the 1st of March. You will be tax less for some time so the car must be off the road.

    Any tax increase in the 09 budget will not be implemented till April 2010. Don't expect a big increase as that will fall 1 month before the election!
  • MX5huggy wrote: »
    To do this you will need to send your current disk off to the DVLA by the end of Feb, so you get the last month refunded and then by a new disk on or after the 1st of March. You will be tax less for some time so the car must be off the road.

    quote]

    Car will have to be declared off road (SORN) for minimum 21 days before it can be re-taxed otherwise you will not receive refund for the one month.

    Probably not really worth your while for just a £5 increase.

    x
    * Rainbow baby boy born 9th August 2016 *

    * Slimming World follower (I breastfeed so get 6 hex's!) *
  • martyp
    martyp Posts: 1,069 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Hmm, thanks guys. Looks like I'll have to go with the new rate then. DVLA seemed to think that I could get the disc before the budget and pay the lower rate. I think I definitely trust what you say though as that makes more sense.
  • martyp
    martyp Posts: 1,069 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    I've received my reminder for tax starting 1st April for a year which stated £185. Usually when I go to the post office they tell me the rate has gone up and I need to pay the higher rate...
    Today I went to the DirectGov website and did an online Tax Disc Application. It came up on there as £185 not £190? I thought it should have been £190 to tax my car (1991 H reg 1.6) from 1st April?
    Can anyone advise?
  • Hi

    I am in your same situation every year. I get the reminder in the post in the first 10 days of March andI go to their website and renew it for the last year's price.
    I did this a week ago and paid £185 and got the disc last Friday. I paid£185 last year.
    One thing worths mentioning is that the post office MAY say they can't renew the tax for you till the 15th or something like that. So do it online and save yourself a fiver, however, you may lose your local post office in the long run!

    Good luck
    Be nice, life is too short to be anything else.
  • martyp
    martyp Posts: 1,069 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Hi

    I am in your same situation every year. I get the reminder in the post in the first 10 days of March andI go to their website and renew it for the last year's price.
    I did this a week ago and paid £185 and got the disc last Friday. I paid£185 last year.
    One thing worths mentioning is that the post office MAY say they can't renew the tax for you till the 15th or something like that. So do it online and save yourself a fiver, however, you may lose your local post office in the long run!

    Good luck

    Thanks :)
    Sounds like a good way of saving a fiver like you say. I'm curious to know what happens to people that go to their local post office for a tax disc.
    With regards to losing my local post office, I've already lost the three that are closest to me. I live in a suburban area between 3 small towns and used to have one within walking distance but that closed in November. The next nearest one has now just closed from what I've heard (annoying as it had late opening hours including Sundays). The suburban/rural post offices have already gone, the only ones left are in each of the neighbouring towns now... I still go to them for all postal needs (don't do it online) and paying in to my bank account.
  • peter999
    peter999 Posts: 7,102 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    martyp wrote: »
    Last few years I have been hit by the increase by getting my tax in late March (expires end of March). This year I want to avoid the increase by buying earlier in the month. Can someone advise on how soon I can get tax and whether I can get it before it goes up?
    I have same problem with Tv Licence.

    Price increases in April, my one starts in April so I get hit by the increases.

    If you buy month earlier you pay cheaper price.

    peter999
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