Buying Used Car from Dealership - How do I maximise Car Tax Payment?

IAMIAM

Picking up 28th August 
I do not want to be in a position of paying for all of August. 
Can I set up a direct debit and then cancel and then pay for 12 months from 1st September?

What is the best way around this?

paul_c123

If you use it on the road on 28th-31st Aug, you need tax to cover that unless you have an exemption.

If you don't use it until 1st Sept, can you a) not collect it until 1st Sept or b) have it delivered and stored off-road until 1st Sept?

Car_54

The best way is to delay picking the car up until September.

Anyway, the forum rules tell us "Do not promote, encourage or glamorise any illegal activities". Tax evasion is illegal.

Mildly_Miffed

IAMIAM said:

Picking up 28th August 
I do not want to be in a position of paying for all of August. 
Can I set up a direct debit and then cancel and then pay for 12 months from 1st September?

What is the best way around this?

As has been said, buy the tax in the last two working days of the month, and it can start from the beginning of the following month.

But how much is 1/12th of the annual VED for it, anyway? ~£10 or so?

paul_c123

facade said:

If you purchase the tax in the last 2 working days of the month, then it starts from the 1st of the next month, rather than the 1st of the current month. Since I doubt very much if DVLA work Saturday or Sunday that would be 28 & 29th August.

Source: V10 form, section C

https://assets.publishing.service.gov.uk/media/67f67f0590615dd92bc90de6/v10-application-for-vehicle-tax.pdf

I don't know if you can actually drive it on the 28th though, as the tax starts on the 1st. I doubt if it matters in The Grand Scheme- you'll never be caught driving it, just don't leave it parked on a road until the 1st.

Not quite true. In the last 2 working days of the month, you are given the option for the tax to start from the next month, or immediately.

IAMIAM

paul_c123 said:

facade said:

If you purchase the tax in the last 2 working days of the month, then it starts from the 1st of the next month, rather than the 1st of the current month. Since I doubt very much if DVLA work Saturday or Sunday that would be 28 & 29th August.

Source: V10 form, section C

https://assets.publishing.service.gov.uk/media/67f67f0590615dd92bc90de6/v10-application-for-vehicle-tax.pdf

I don't know if you can actually drive it on the 28th though, as the tax starts on the 1st. I doubt if it matters in The Grand Scheme- you'll never be caught driving it, just don't leave it parked on a road until the 1st.

Not quite true. In the last 2 working days of the month, you are given the option for the tax to start from the next month, or immediately.

I never new this. So if I pick up on 28th or 29th August and have to pay the £195 at the dealership, gov.uk lets you pick 1st Sept as the start date?!

MeteredOut

IAMIAM said:

paul_c123 said:

facade said:

If you purchase the tax in the last 2 working days of the month, then it starts from the 1st of the next month, rather than the 1st of the current month. Since I doubt very much if DVLA work Saturday or Sunday that would be 28 & 29th August.

Source: V10 form, section C

https://assets.publishing.service.gov.uk/media/67f67f0590615dd92bc90de6/v10-application-for-vehicle-tax.pdf

I don't know if you can actually drive it on the 28th though, as the tax starts on the 1st. I doubt if it matters in The Grand Scheme- you'll never be caught driving it, just don't leave it parked on a road until the 1st.

Not quite true. In the last 2 working days of the month, you are given the option for the tax to start from the next month, or immediately.

I never new this. So if I pick up on 28th or 29th August and have to pay the £195 at the dealership, gov.uk lets you pick 1st Sept as the start date?!

The more pertinent question is whether the dealership will put it through as the start of the next month if you're driving it home before then. I suspect most main dealerships would not want to knowingly allow you to drive without road tax.

CliveOfIndia

IAMIAM said:

I never new this. So if I pick up on 28th or 29th August and have to pay the £195 at the dealership, gov.uk lets you pick 1st Sept as the start date?!

Yes.  But you can't drive it (or keep it on the road) until 1st Sept.  Well, you could, but if you're unlucky enough to get pinged by an ANPR camera, then you'll wish you hadn't.

paul_c123

You don't "have to pay the £195 at the dealership". When a trader transfers a car out of the trade and to the buyer (new registered keeper), there are 3 options:

Tax it
SORN
Do nothing

If you select the "Tax it" option, it opens up another browser window landing at the same place you'd be if you went in directly. And on that page, if its in the last 2 working days, will give the option to do it for current month or next month. (So there's effectively 4 choices, in these last 2 days). 

facade

paul_c123 said:

facade said:

If you purchase the tax in the last 2 working days of the month, then it starts from the 1st of the next month, rather than the 1st of the current month. Since I doubt very much if DVLA work Saturday or Sunday that would be 28 & 29th August.

Source: V10 form, section C

https://assets.publishing.service.gov.uk/media/67f67f0590615dd92bc90de6/v10-application-for-vehicle-tax.pdf

I don't know if you can actually drive it on the 28th though, as the tax starts on the 1st. I doubt if it matters in The Grand Scheme- you'll never be caught driving it, just don't leave it parked on a road until the 1st.

Not quite true. In the last 2 working days of the month, you are given the option for the tax to start from the next month, or immediately.

Yes, you are correct.

Also Saturday is a working day according to the notes on the V10 so that would mean it has to be done on the 29th.

sheramber

The last two working days in August will 39th and 31st