Road Tax Refund

BLQ

I have just discovered that DVLA can get a double payment for one months road tax. For instance I sold my car at the weekend and the new owner taxed it in his name before he drove away in it. I contacted DVLA to claim my refund only to be told l would only get a refund from April, nothing for the remaining days in March. I asked what about the new owner and I was surprised to be told that he had to pay for the whole month of March as well!
This should not be allowed to continue?

AdrianC

You know it's six years since the tax disc was removed, and automatic refund on keeper change started?

In 2017, the average new car was £30/year VED, so a month is £2.50. How much is VED on this particular car?

VED has always been done by complete months - a refund at any time after the first of the month only got a refund of the complete month, and purchasing any time after the first always saw the purchase cover that month. Something like less than a third of used cars were taxed before the keeper change - simply because no used car dealer ever keeps their stock taxed...

BLQ

£300 a year so a fair bit more than £2.50. Why double charge a months tax? 

AdrianC

No one person is being double charged.

You are paying the tax for your use of the vehicle.
The purchaser is paying the tax for their use of the vehicle.
Tax is, and always has been, done by complete months.

It's your choice to have a vehicle in what was the second-highest CO2 band... and the corollory of that is high VED.

This was all done to death following the 2014 change.

BLQ

Not all of us can afford low emissions vehicles. 

In the paper tax  disc era the disc was left with the car if it expired in the same month as the sale. So no one paid twice.
so it currently is double taxation, but we live in a far more technologically integrated govt and tax monitored times. I am sure the DVLA could refund, they just choose not to and so obtain twice the taxation?

foxy-stoat

BLQ said:

Not all of us can afford low emissions vehicles. 

In the paper tax  disc era the disc was left with the car if it expired in the same month as the sale. So no one paid twice.
so it currently is double taxation, but we live in a far more technologically integrated govt and tax monitored times. I am sure the DVLA could refund, they just choose not to and so obtain twice the taxation?

Not really, when I sold my car years ago and it had 10 months tax - I always gave the option to leave the tax or they can buy it with no tax and I will refund.

You only really lose out if you sell on day 2 or buy on day 30.

If your tax was £300 then you are losing £25 - chill - there is worse happening at the moment, price and availability of loo roll being one of them.

AdrianC

BLQ said:

Not all of us can afford low emissions vehicles.

Where in the country are you? I bet I can find you a dozen <£1k <£50/year VED cars in your area in about two minutes.

A_Lert

This has been the case for ages. You don't get a refund or a discount for incomplete months.

Yes, it means the taxman gets double tax for the month a taxed car is sold in, unless the car is sold on the first of the month. Did you expect HMRC to be 'fair'?

TooManyPoints

A_Lert said:

...unless the car is sold on the first of the month. 

If the car is sold on the first of the month the seller has an obligation to ensure that it is taxed for that month and he will not get a refund for that month. The buyer will have to tax it from the first of that same month. There is no way round the double taxation scam unless you can convince the DVLA that the vehicle was sold on the stroke of midnight on 31st/1st or the seller SORNs the vehicle at the end of the month. before it is sold. Otherwise there will always be a month that is paid for twice. Who bears the cost of that depends when in the month the sale takes place. The seller takes the biggest hit from the first of the month gradually decreasing as the month goes on. The buyer takes the smallest hit at the beginning of the month, gradually increasing as the month goes on.

AdrianC

A_Lert said:

Did you expect HMRC to be 'fair'?

Where do HMRC come into it?

AdrianC

A_Lert said:

Did you expect HMRC to be 'fair'?

Where do HMRC come into it?

It's probably also worth remembering that DVLA don't set VED policy, they merely implement it. It's the chancellor who sets it, in the budget.