Car over £40,000 tax end (part way through year)

bmwmsport

I bought a car 2nd hand and there has been a pause in tax. Originally it cost over £40,00 so attracted the additional £325 in tax for the first 5 years of its life.
The tax year will renew literally ONE month before the car is 5 years old. Does anyone know if I will have to pay for the additional £325 for the next year - or do the gov divide that additional payment by 12?
Cant find any info. TIA

DrEskimo

That charge is applicable for 5yrs from the second time the car is taxed.

So yes, you will definitely be paying the higher amount this year.

bmwmsport

Ok. Thanks. Not sure you understand. Maybe you do. Car is registered 1st March 2018. Come 1st Feb 2021 - have paid the additional £325 + £150 
1st Feb in 2022 I will pay the same. 

1st Feb 2023 - would seem unfair to pay the additional £325 + £150 for the whole year! If that’s the case I will SORN the car for a month between now and then to stop the additional charge as the tax would be due 1st March 2023 and as it is 5 years old the additional £325 won’t have to be paid ...’

AdrianC

Whenever you buy tax for the car in the first five years since it's been registered, you pay the supplement. In full.

If you tax it from the 1st Feb, you pay it. In full.
If you SORN it at the end of Feb, you get the supplement back, pro-rata'd.
If you then tax it at the start of March, you don't pay the supplement...

No need to SORN it for a month.

Grumpy_chap

AdrianC said:

If you SORN it at the end of Feb, you get the supplement back, pro-rata'd.

I understood the early year supplements were not refundable?  There have been other threads where people suggested exactly the above, and they have all been knocked back.

AdrianC

I'm fairly sure the £40k list price supp is - but the 1st-taxing CO2 premium definitely isn't. Perhaps that's where the confusion comes from?

Grumpy_chap

AdrianC said:

I'm fairly sure the £40k list price supp is - but the 1st-taxing CO2 premium definitely isn't. Perhaps that's where the confusion comes from?

Thanks.  I am happy to stand corrected. 
I've never been near the £40k tax supplement   Maybe next car will be as I aim for EV and they are all somewhat pricier.  Maybe EV's are exempt from the surcharge as part of the encouragement to go electric?

AdrianC

Grumpy_chap said:
Maybe EV's are exempt from the surcharge as part of the encouragement to go electric?

Nope.

And plenty of EVs are way below the £40k threshold.

That threshold hasn't been changed since it was introduced in 2017. Unlikely to now, of course, when the treasury need every penny they can get...

DrEskimo

AdrianC said:

Grumpy_chap said:
Maybe EV's are exempt from the surcharge as part of the encouragement to go electric?

Nope.

And plenty of EVs are way below the £40k threshold.

That threshold hasn't been changed since it was introduced in 2017. Unlikely to now, of course, when the treasury need every penny they can get...

Actually, yes.

A change in the 2020 budget made all EVs exempt from VED. There is currently no 'luxury VED' charge on EVs over £40k.

Although EVs >£50k no longer get the £3,000 grant off the RRP.

https://www.autocar.co.uk/car-news/industry/budget-2020-how-government’s-plans-will-affect-motorists

Grumpy_chap

So, the e-Niro and Tesla 3 LR sit in a happy sweet spot, but Ford Mustang will likely miss...

bmwmsport

AdrianC said:

Whenever you buy tax for the car in the first five years since it's been registered, you pay the supplement. In full.

If you tax it from the 1st Feb, you pay it. In full.
If you SORN it at the end of Feb, you get the supplement back, pro-rata'd.
If you then tax it at the start of March, you don't pay the supplement...

No need to SORN it for a month.

Thanks. But I will have to SORN it for a month. Because I'm not paying the extra £325 for ONE month. The car turns 5 on 1st March 2023. I renew tax as it happens on 1st Feb 2023. If I don't SORN it for a month - I will end up paying the £325. If I SORN it and wait I won't have to pay the extra £325 on 1st March 2023.
Ya get me?