Higher rate car tax.......

GadgetGuru

I have a car first registered Sept 2019 (I purchased in July 2020), valued over £40k, so I have had to always pay the higher rate of car tax with the extra £410 per year. 

My car tax is due end of June 2024 and comes to £600 because of that higher rate. 

However, my car is 5 years old in September 2024.

I thought it would therefore be better for me to pay the tax monthly for the next 3 months, and then get the 12 month tax as usual after September when the car is over 5 year old, and hence pay the lower rate of £190? 

However, I've just been checking on the Gov site: https://www.gov.uk/vehicle-tax-rate-tables

It seems the 5 years started from the SECOND year and not from first registration, in effect making it 6 years from new in total. 

So if my vehicle was first registered Sept 2019, it should actually drop to the lower tax rate in Sept 2025. 

Is that correct??
Thank you

DE_612183

I thought car tax was 6 or 12 monthly periods - you can of course choose to pay 6 monthly or 12 monthly installments...

Bigphil1474

Yes that's what it says. AFAIK there's no point paying monthly for the 3 months though (between June and Sept.), as the 12 month payment from June 2025 will automatically be adjusted to take into account the 6th anniversary (you won't pay the extra for the whole 12 months), or pay it monthly Direct Debit and it would come down in September. I think the best way to do it is one DD every 12 months, saves you forgetting and is cheapest. I do monthly DD as it doesn't make much difference to me. 

GadgetGuru

Ah I didnt realise they automatically adjust for the 6th year. Thanks for that. I'll do what you suggest and continue with the 12 months in that case.
Thank you

Rodders53

I bought a March 2019 vehicle in November 2019 subject to this additional tax. 

So I'm expecting this year's VED to be standard rate as it will then be 5 years since the second tax was paid.  Nowt to do with first registration date.
Nov 2019 Y1, 20 Y2, 21 Y3, 22 Y4 and Nov 2023 Y5 

Or am I misguided????

If I am right, in the OP's case the June 24 tax payment should be the last with the (currently) £410 'extra'.

Goudy

You pay the "expensive or luxury car supplement" for years two to six, so five payments in total.

The first years road tax is just based on emissions and it's usually in the on the road fee.
There is no supplement on this but is does vary widely, particularly if it's Co2 is high.
This is anywhere between £0 and £2745.

From year two you pay the set £190 a year or £180 for alternative fuel (currently), plus the supplement.
So year two is your first supplement payment of the five.

After the five payments (years 2, 3, 4, 5 and 6) you just pay the set rate (whatever that will be then) unless the government change things in the meantime.

From April next year, EV's costing over £40,000 will also have to pay the supplement.

GadgetGuru

Rodders53 said:

I bought a March 2019 vehicle in November 2019 subject to this additional tax. 

So I'm expecting this year's VED to be standard rate as it will then be 5 years since the second tax was paid.  Nowt to do with first registration date.
Nov 2019 Y1, 20 Y2, 21 Y3, 22 Y4 and Nov 2023 Y5 

Or am I misguided????

If I am right, in the OP's case the June 24 tax payment should be the last with the (currently) £410 'extra'.

The way I see is my June 24 payment will be my last with the full £410 luxury car tax on top. 
My June 25 payment will have 3 months of luxury car tax (as it was first registered Sept 19, and the rest 'normal' car tax.

So, similarly, in your case your March 2025 payment will have 8 months or so of luxury car tax and the remaining will be standard rate.......

ontheroad1970

Mine is coming up to £600 a year for a Peugeot 5008 GT.  

no1_hez

My car tax has the additional charge (£590) however I have paperwork that my list price was £35k! With interest on pcp, I will pay over £40k.. is this right if the list price was under £40k?

sheslookinhot

Interest should not be counted. Has the Manufacturers Price ever been over 40k ?

no1_hez

Thanks for your reply. No I got it from new 2020 on pcp. I will double check list price with the garage and query it!