Car Tax Pay Monthly Surcharge

Bellesteve

Just noticed my car tax will cost me £304.50 in total against a basic cost of £240.00 pa. A surcharge of £64.50 or 27% near enough so I can pay monthly. This for a Mondeo 2.2L TDCi Estate 2007. That seems a lot of money. I noticed a question on t'internet asked what it cost generally, and the response was 5%. Can anyone cast any light on this please?

Dazed_and_C0nfused

Bellesteve said:

Just noticed my car tax will cost me £304.50 in total against a basic cost of £240.00 pa. A surcharge of £64.50 or 27% near enough so I can pay monthly. This for a Mondeo 2.2L TDCi Estate 2007. That seems a lot of money. I noticed a question on t'internet asked what it cost generally, and the response was 5%. Can anyone cast any light on this please?

Are you choosing to pay through a third party not gov.uk 🤔

Or are you simply mixing up the rates??

G: 151 to 165g/km £240 £240 £252

H: 166 to 175g/km £290 £290 £304.50

https://www.gov.uk/vehicle-tax-rate-tables/rates-for-cars-registered-on-or-after-1-march-2001

facade

Yes there is a surcharge on not paying 12 months in advance.

If you buy 6 months tax with cash or debit card it is 10%, so your £240 P.A. would be £132 for 6 months.(total £264)

For 6 monthly direct debit it is 5% so £126 per 6 months (total £252)

For monthly direct debit it is 5%, so your £240 becomes £21 a month, and the surcharge is £12. (total £252)

Are you trying to pay through some third party rip-off website?

the rates are here

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1146222/v149-rates-of-vehicle-tax-for-cars-motorcycles-light-goods-vehicles-and-private-light-goods-vehicles.pdf

Graydog7

10% Surcharge for road usage ahead of time  puts the Government in the league dodgy loan sharks in my eyes. Totally inappropriate on top of high tax levels 

Grey_Critic

Graydog7 said:

10% Surcharge for road usage ahead of time  puts the Government in the league dodgy loan sharks in my eyes. Totally inappropriate on top of high tax levels 

They make the rules otherwise get a bike - they have not yet got around to VED on them - YET

user1977

Graydog7 said:

10% Surcharge for road usage ahead of time  puts the Government in the league dodgy loan sharks in my eyes.

10% seems very reasonable for unsecured credit offered to everybody, regardless of status. If you want to borrow it from somewhere else instead, here are some suggestions:

https://www.moneysavingexpert.com/loans/cheap-personal-loans/#1k

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user1977 said:

Graydog7 said:

10% Surcharge for road usage ahead of time  puts the Government in the league dodgy loan sharks in my eyes.

10% seems very reasonable for unsecured credit offered to everybody, regardless of status. If you want to borrow it from somewhere else instead, here are some suggestions:

https://www.moneysavingexpert.com/loans/cheap-personal-loans/#1k

I think the point is that if you buy a sofa or even 12 months insurance and pay monthly, then you are borrowing the purchase price off someone and paying it back.

When you tax your car HMRC don't lend you the money to pay themselves with, and then you pay them back monthly!

Graydog7

I have to say it surprises me how many people think that NOT paying in advance for something as intangible as 12 months VED constitutes a loan of some kind. It's not like buying a physical item that you get the use of from day one, it's more of a Pay as You Go situation in my eyes, it's never going to make sense to me so don't bother trying to explain it to me any more thanks. I'm to old to change now.

 It should be on fuel anyway, That would make you think twice about nipping to the shops in the car and would wipe out the tax dodgers. The EV's would still go free though so that's a shame. 

Graydog7

facade said:

user1977 said:

When you tax your car HMRC don't lend you the money to pay themselves with, and then you pay them back monthly!

Well said :0:smiley:

Herzlos

You can always view it the other way - by paying them a year in advance you give them money they can use elsewhere (or gain interest on), and by providing them with the loan you get to save some money.
I assume that paying annually also carries less risk, though given the penalties involved for not taxing a car I think it's low risk anyway. People who pay monthly are more likely to have payment problems (because people who pay annually can't have problems) which costs more money to deal with.


At the end of the day though, there's not really much we can do about the system because complain to your MP and hope they are vaguely competent.

Graydog7

Herzlos said:

 People who pay monthly are more likely to have payment problems (because people who pay annually can't have problems) which costs more money to deal with.


At the end of the day though, there's not really much we can do about the system because complain to your MP and hope they are vaguely competent.

That's part of my issue. You think those paying monthly are a higher risk and more costly to deal with so why only 5% surcharge for them against 10% for those paying 6 monthly?

I have done this. Gillian Keegan... I've no expectations