If car tax goes up in the budget

[Deleted User]

My car tax is due 1st April. If it goes up in the March Budget, and I choose to pay by direct debit, will I be charged the new rate from 1st April or the current rate before the rise if I set the direct debit up in March?

DUTR

Either way you will pay the new rate, as the rate change occurs before the end of March.

[Deleted User]

DUTR wrote: »

Either way you will pay the new rate, as the rate change occurs before the end of March.

Really? I thought if you paid before the date the new rate was due, then you paid the old current rate. What if I paid it in cash before the budget was announced, do I get another bill for the extra few pounds?

DUTR

Deleted_User wrote: »

Really? I thought if you paid before the date the new rate was due, then you paid the old current rate. What if I paid it in cash before the budget was announced, do I get another bill for the extra few pounds?

Really? Yes.
EG, your VED is £100 pa, the budget announces it is to go up from 23rd March, well renewals from 1st April will contain the increase, the way to delay the increase is to have a 12 month renewal ending February.

When you have monthly you are still purchasing 6 or 12 month VED.

marlot

Mine is due the end of March. By renewing before the budget, I've always been able to get the old rate.

DUTR

marlot wrote: »

Mine is due the end of March. By renewing before the budget, I've always been able to get the old rate.

As long as you renew before the date they announce on the budget, there is a disclaimer on the renwal form that informs the price may change from that listed on the form.

gilbert_and_sullivan

The increase if any shouldn't be much, election being two months away, watch out the next few years though if you own a 'killer' Diesel.

Joe_Horner

Deleted_User wrote: »

My car tax is due 1st April. If it goes up in the March Budget, and I choose to pay by direct debit, will I be charged the new rate from 1st April or the current rate before the rise if I set the direct debit up in March?

You'll pay the new rate because, apart from anything else mentioned above, they won't actually take any money until some time in April so you won't have paid anything before the increase.

[Deleted User]

DUTR wrote: »

Really? Yes.
EG, your VED is £100 pa, the budget announces it is to go up from 23rd March, well renewals from 1st April will contain the increase, the way to delay the increase is to have a 12 month renewal ending February.

When you have monthly you are still purchasing 6 or 12 month VED.

The budget takes place on the 18th March. If I tax my car by cash at PO on the 5th March for April due date, then how can they charge me more if it goes up on 1st April after being announced in the Budget?.

Joe_Horner wrote: »

You'll pay the new rate because, apart from anything else mentioned above, they won't actually take any money until some time in April so you won't have paid anything before the increase.

I see. Thanks.

DUTR

Deleted_User wrote: »

The budget takes place on the 18th March. If I tax my car by cash at PO on the 5th March for April due date, then how can they charge me more if it goes up on 1st April after being announced in the Budget?.



I see. Thanks.

If they anounce VED is to increase by £5pa across the board from the 19th, then you will pay the current rate, renewals on or after the 19th will pay the new increased rate. As said when you pay by DD, you still by a block of 6 or 12 months, the DD is marked up anyways. Thats a difference of 42p/month and depending on how you budget,the recent price reductions in fuel may have offset an annual VED renewal.