Car Tax Advice Please

richardvc

I currently pay my road fund licence by direct debit which is approximately £23 per month - I will be changing my car and my new one will be approx £45 per month.

My questions are :
1. Do I do this online ?
2. Does my £23 payment just "cease" and I have a new backdated £45 per month payment or do I have to pay any lump sum ? ie does any credit for the month carry on pro-rata or is it a new agreement and any surplus just disappears into the Govts coffers !!

Apologies I have searched the DVLA website but just cannot find an easy answer !!

societys_child

If you "time it right" and dispose of your old car before the end of the month (or last day) and buy the new one the following month (first day or later), they will set up a new DD for £45 beginning on the first of that month.
If you change the vehicles mid-month, you pay both. VED is paid per calendar month with no refunds on part months.

richardvc

Thank you SC, just as I thought.
We get mugged again !!

BeenThroughItAll

richardvc wrote: »

Thank you SC, just as I thought.
We get mugged again !!

Not particularly, tax has always been valid for whole months only, and has never been transferable between vehicles. Nothing has changed from that perspective - the only difference is you can't sell or buy a vehicle with valid tax any more, with a new owner always responsible for a vehicle before driven away.