Car tax - extra cost for cars over £40k

Dabadoo2022

I order a new car in Oct 2021 but due to supply issues of car components the vehicle was not ready until March 22. During this time the manufacturers (Toyota) put the list price up which resulted in the cost of the car just tipping over £40k. Now, although this didn’t effect me in terms of the purchase price due to already signing the agreement at the original list price, the government use the list price of the vehicle as of the day before 1st registration to calculate car tax so has meant that my car tax for the next five years will carry an additional cost of £355 per year, meaning over the next five years I will be paying an additional £1775 over and above normal car tax.
I know I’m not the only person in this situation but I feel aggrieved that the manufacturer will not raise the matter with the government given that this has effected customers through no fault of their own and in all honesty I would not have ordered that car at that price.
Has anyone else had this or does anyone know if anything can be done to remove this extra cost?
Also does anyone know why the government have adding the additional cost on cars over this threshold? Given this car is more environmentally friendly than my last, it seems odd!

force_ten1

Dabadoo2022 said: does anyone know why the government have adding the additional cost on cars over this threshold? Given this car is more environmentally friendly than my last, it seems odd!

The VED surcharge on cars costing more than £40,000 when new seems to be added because if you can afford a car costing  more than £40,000 then you can afford to pay more tax 

the first years VED can carry a showroom tax for the most polluting vehicles and then after that you have to pay the £355.00 a year tax grab for the next five years 

your situation sucks but there is not much that you can do about it and l very much doubt you would ever get the charge removed 
 

Herzlos

I think you're choices are almost certainly going to be to pay the extra tax, or cancel the car order assuming you don't already have it. Toyota will be able to sell the car to someone else for the new price, and you can find another car at a price you want to pay.

You can complain to your MP and Toyota, but it'll easily be 5 years before anything is changed. It's a fairly niche issue where someone ordered a car at under £40k and due to Brexit/Covid/Ukraine the list price has gone over £40k even if you're still paying the earlier price.

force_ten1 said:

Dabadoo2022 said: does anyone know why the government have adding the additional cost on cars over this threshold? Given this car is more environmentally friendly than my last, it seems odd!

The VED surcharge on cars costing more than £40,000 when new seems to be added because if you can afford a car costing  more than £40,000 then you can afford to pay more tax

Someone has to pay tax unfortunately, and it's not as if many people are forced to buy a car costing over £40k.

The fairer thing to do would be to drop the VED and add it onto fuel, but no-one is going to agree to that.

Grumpy_chap

Another case of fiscal drag.
The additional car tax rate was introduced in 2017 IIRC.
It was quite an expensive car then to be £40k.
Now, even higher trim versions of fairly ordinary family cars get included in the tax rate.