Lex auto car tax rules

HoveNotHappy

Ask Lex for a copy of your V5 so you can register your car to avoid the London congestion charge on your electric vehicle. Once you have the details, do the tax yourself. Super simple 

littlebigjon

HoveNotHappy said:

Ask Lex for a copy of your V5 so you can register your car to avoid the London congestion charge on your electric vehicle. Once you have the details, do the tax yourself. Super simple 

Thanks for this advice but they've already told me they don't allow their clients to tax the car themselves. I imagine they would just take a years tax anyway. 

littlebigjon

Car_54 said:

Their car, their rules ...

They could make thousands of loyal clients if they did this. It's not illegal. They've either not thought about it or simply don't care. 
This surely applies to all vehicles.. not just EVs... all tax is going up isn't it? Anyone with a car list price over 40k is in for a big shock. 

littlebigjon

mills705 said:

Is your monthly premium effected by the tax change? If No then Id not worry about it. 
If yes then you could complain however I don't think they will do anything as its there decision on the contract to not pay it early. 
Have you read through your T+C regarding the contract and is there anything in there? 

Monthly premium stays the same.. they can't change that. They're just going to take a full years tax on my direct debit on the anniversary of me getting the car. 
The contract probably allows them to do that. I'll check another time but don't hold out any hope. In a week or so it will be to late anyway. 

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littlebigjon said:

mills705 said:

Is your monthly premium effected by the tax change? If No then Id not worry about it. 
If yes then you could complain however I don't think they will do anything as its there decision on the contract to not pay it early. 
Have you read through your T+C regarding the contract and is there anything in there? 

Monthly premium stays the same.. they can't change that. They're just going to take a full years tax on my direct debit on the anniversary of me getting the car. 
The contract probably allows them to do that. I'll check another time but don't hold out any hope. In a week or so it will be to late anyway. 

As discussed on another thread, they will charge VAT on top (on behalf of HMRC), as they are the Registered Keeper and therefore responsible for purchasing the tax, not you, so passing the cost to you is not a disbursement and is subject to 20% VAT on the whole cost

https://www.gov.uk/guidance/vat-costs-or-disbursements-passed-to-customers

To treat a payment as a disbursement all of the following must apply:

• you paid the supplier on your customer’s behalf and acted as the agent of your customer
• your customer received, used or had the benefit of the goods or services you paid for on their behalf
• it was your customer’s responsibility to pay for the goods or services, not yours
• you had permission from your customer to make the payment
• your customer knew that the goods or services were from another supplier, not from you
• you show the costs separately on your invoice
• you pass on the exact amount of each cost to your customer when you invoice them
• the goods and services you paid for are in addition to the cost of your own services

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littlebigjon said:

Car_54 said:

Their car, their rules ...

They could make thousands of loyal clients if they did this. It's not illegal. They've either not thought about it or simply don't care. 
This surely applies to all vehicles.. not just EVs... all tax is going up isn't it? Anyone with a car list price over 40k is in for a big shock. 

It is a large admin cost for them- they have thousands of vehicles in this situation, and they don't care because they will simply pass the cost on when the time comes.

I simply can't imagine that there isn't a clause in the contract that covers this situation and makes the customer liable for VED charges, you didn't need a crystal ball to know that zero VED would end sometime.

littlebigjon

facade said:

littlebigjon said:

Car_54 said:

Their car, their rules ...

They could make thousands of loyal clients if they did this. It's not illegal. They've either not thought about it or simply don't care. 
This surely applies to all vehicles.. not just EVs... all tax is going up isn't it? Anyone with a car list price over 40k is in for a big shock. 

It is a large admin cost for them- they have thousands of vehicles in this situation, and they don't care because they will simply pass the cost on when the time comes.

I simply can't imagine that there isn't a clause in the contract that covers this situation and makes the customer liable for VED charges, you didn't need a crystal ball to know that zero VED would end sometime.

That isn't the point of this thread. The point is Martin Lewis encouraged all ev car owners to 'tax' their cars before the tax charges kick in. There's nothing to stop lease companies doing this. They own the car, they can tax it when they like. The whole point of MSE forum is to spread the word, save money, stop wasting money. Be positive and don't give in so easily.

400ixl

They will have a fully automated system in place to tax the cars at the right time. To suddenly for a one off time need to change that is thousands of pounds of change or even more cost in manual labour.

It is a long way off being free for them and riddled with risk.

Just because Martin tells people to do something is not necessarily the right thing for a business to do.

93tid

I was told by Lex that the payment of the tax is triggered by receiving the reminder a month before it is due for renewal. I wonder what would happen if they don't receive a reminder.

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93tid said:

I was told by Lex that the payment of the tax is triggered by receiving the reminder a month before it is due for renewal. I wonder what would happen if they don't receive a reminder.

they won't tax it. Then when their car is clamped, or even impounded they will have to pay the fine & fees.

I can't see them being able to recover a penalty that they incurred through their (lack of) action from the lessee.