Road Tax REnewal

TonyM19

Hi


Tax expires on 31 May. Trading car in for a new one on 3 June. Old car will be in airport car park until early hours of 2 June. Am I running too much of a risk to not renew the tax?


I'm assuming that I would get a refund of 5 months tax (for 3 days) if I paid for 6 months. Wouldn't have thought tiwce about it with the old tax discs but not as confident now. What's peoples thoughts?


Didn't want to pick new car up before going away and then leave that in airport car park

Marvel1

12 months tax is better with 11 months refund.

6 months you pay an extra 10% and the 5 months refund is does not include the extra 10%, it's based on the 12 month rate.

AdrianC

How much is a month's tax on that car?

MovingForwards

You can set it up on monthly direct debit, which adds a bit to the price, then cancel the DD when the car goes.

I was recently advised this by the DVLA.

unholyangel

Marvel1 wrote: »

12 months tax is better with 11 months refund.

6 months you pay and extra 10% and the 5 months refund is does not include the extra 10%, it's based on the 12 month rate.

Its been 5% for years now. And 5% for both 6 months & monthly payment frequency.

FWIW OP I wouldn't take the risk for the sake of a few quid.

You would have to declare it sorn, not just cancel the tax.

molerat

A one off 6 month payment attracts a 10% premium, paying monthly or 6 monthly by DD attracts a 5% premium. Single 6 month payments are the most expensive way of taxing a car.

facade

unholyangel wrote: »

Its been 5% for years now. And 5% for both 6 months & monthly payment frequency.

FWIW OP I wouldn't take the risk for the sake of a few quid.

You would have to declare it sorn, not just cancel the tax.

The 5% extra only applies to if you set up a direct debit, there is still a 10% extra rip-off (no way does the "admin" add 10%) if you pay in one go by card/cash.

unholyangel

facade wrote: »

The 5% extra only applies to if you set up a direct debit, there is still a 10% extra rip-off (no way does the "admin" add 10%) if you pay in one go by card/cash.

[F6(1)Where a vehicle licence for a vehicle of any description is taken out for a period of 12 months, vehicle excise duty is to be paid on the licence—
(a)at the annual rate of duty applicable to vehicles of that description, or
(b)if the duty is to be paid by more than one instalment pursuant to an agreement under section 19B, at a rate equal to 105% of that annual rate.

(2)Subject to subsection (2A), where a vehicle licence for a vehicle of any description is taken out for a period of 6 months, vehicle excise duty is to be paid on the licence—
(a)at a rate equal to 55% of the annual rate of duty applicable to vehicles of that description, or
(b)if the duty is to be paid by direct debit pursuant to an agreement under section 19B, at a rate equal to 52.5% of that annual rate.

The surcharge is for the frequency, not the payment method. Section 19b is allowing for the purchase of an annual licence to be paid in instalments. So it would seem those paying by direct debit have purchased a 12 month licence - they're just paying it every 6 months. While those paying by card are purchasing a 6 month licence. Or at least its treated that way.

Marvel1

unholyangel wrote: »

Its been 5% for years now. And 5% for both 6 months & monthly payment frequency.

FWIW OP I wouldn't take the risk for the sake of a few quid.

You would have to declare it sorn, not just cancel the tax.

No, 10% for 6 month one off and 5% for 6 month direct debit and monthly direct debit
https://www.gov.uk/vehicle-tax-rate-tables/rates-for-cars-registered-on-or-after-1-march-2001

knightstyle

Just remember that the car MUST be taxed or SORNed or you will have no insurance and risk getting a fine. This applies even if the car is on private land.

AdrianC

Yes, it has to be taxed or SORNed - but, no, that won't invalidate your insurance. You're just committing a tax offence.
Yes, you'll be fined if it isn't either taxed or SORNed.
Yes, if it's taxed it must be insured.
Yes, if it's anything but taxed and insured, it must be on private land.