Higher rate car tax.......

Goudy

Most PCP deals come with a deposit contribution, but that still counts towards the £40k.

The MRP and invoice will still be £40k+ and you will have to pay the luxury car supplement even though you might be paying less than that.

08Foggy55

Can any of you good people answer a question regarding expensive car supplement?
If you purchase a car which is liable for the extra £410 tax, is that rate fixed for the full 5 years once you've started paying or does it rise annually? March 2025 it's £410, April £425, if I tax in March 2025 I pay the extra £410 and March 2026 is it £410 or £425?

DE_612183

08Foggy55 said:

Can any of you good people answer a question regarding expensive car supplement?
If you purchase a car which is liable for the extra £410 tax, is that rate fixed for the full 5 years once you've started paying or does it rise annually? March 2025 it's £410, April £425, if I tax in March 2025 I pay the extra £410 and March 2026 is it £410 or £425?

You should start your own thread otherwise people will be confused with the other questions / answers in the thread.

And are you talking about the Road Tax you pay?

08Foggy55

Sorry as this thread was talking about car tax supplement for vehicles over 40k, I'd assumed that this was the perfect place to ask the question.

facade

08Foggy55 said:

Can any of you good people answer a question regarding expensive car supplement?
If you purchase a car which is liable for the extra £410 tax, is that rate fixed for the full 5 years once you've started paying or does it rise annually? March 2025 it's £410, April £425, if I tax in March 2025 I pay the extra £410 and March 2026 is it £410 or £425?

I can't imagine, for even a nanosecond, that HMRC wouldn't have linked it to "inflation" like they have with every other tax

08Foggy55

I agree, let's force the motorist off the road. I spoke to a car dealer about this extra tax, and his opinion is it will go up every April, but he wasn't 100% sure. He also said a basic Kia Sportage was £19000 and now it's £29000. I think the 40k threshold is set to low and it's increasing with inflation. More and more mid range cars are going to be caught up in this tax.

08Foggy55

Sorry correction🙄. The 40k threshold should have risen with inflation, as a 40k in 2017 was expensive, but 7 years later it's becoming more of an average price.

facade

08Foggy55 said:

Sorry correction🙄. The 40k threshold should have risen with inflation, as a 40k in 2017 was expensive, but 7 years later it's becoming more of an average price.

Why would they change it? Eventually every car will be £40K+ so every car will have to pay the supplement.

Win, win, win for HMRC!

GadgetGuru

I'm hoping this year will be my last year of this ridiculous tax!

08Foggy55

I'm struggling with their logic. They encourage every one to purchase a low emissions car with cheap road tax, and then guess what!! the road tax revenue drops (Who'd have guessed) so now they hit all drivers including EV drivers.