Taxed car using v5c/2 logbook still on previous owners name. Who gets tax refund?

sheramber

Ballistic87 said:

Hi. I purchased a car from a fellow car dealer who just gave me the logbook as I am also a part time motor trader, so I didn’t want to add another owner onto the car. 

The logbook still has the previous owners name /address on it (the guy who sold the car to the dealer) 

I was planning to fill this logbook out and send it off when I sold the car but in the meantime I decided I would use it for myself. Taxed it for 6 months at the post office using the v5c/2. Issue is I’ve got a to go away on holiday and the car will be going into storage. Seems a shame to waste the tax money (paid almost £350 for 6 months). 

Would it be possible to cancel the tax and get a refund for 5 months? I paid at the post office by card. The car is not in my name I used the v5c/2

Whose name is it in?

Ballistic87

sheramber said:

Ballistic87 said:

Hi. I purchased a car from a fellow car dealer who just gave me the logbook as I am also a part time motor trader, so I didn’t want to add another owner onto the car. 

The logbook still has the previous owners name /address on it (the guy who sold the car to the dealer) 

I was planning to fill this logbook out and send it off when I sold the car but in the meantime I decided I would use it for myself. Taxed it for 6 months at the post office using the v5c/2. Issue is I’ve got a to go away on holiday and the car will be going into storage. Seems a shame to waste the tax money (paid almost £350 for 6 months). 

Would it be possible to cancel the tax and get a refund for 5 months? I paid at the post office by card. The car is not in my name I used the v5c/2

Whose name is it in?

The previous owner who sold it to my trader pal. 

Goudy

There is a bit of a loop hole that certain unregistered traders use to tax a car.

To put a car "in trade" officially the trader must be registered with the DVLA.
The vehicle is then assigned to their business through the DVLA.

If it's not "in trade" anyone can tax it, all they need is the money and the document reference number on the V5C,  but any tax rebate will go to the registered keeper on V5C.  

If a change of keeper is performed at the time of taxing, then that new keeper would get any tax rebate from selling it or sorning it later on, but another keeper appears on the V5C.

What tends to happen is unregistered traders can't put cars "in trade" and don't have trade plates so tend to tax their cars if needed (some will already have some tax and as no new keeper is registered yet, the tax remains valid).
They tend to buy stock and do nothing with the V5C until they sell them on.

The original keeper doesn't really notice as eventually when the keeper does change, they get a VED rebate then.

It's not usually too much of a problem for the unofficial trader as with some older cars are only a few quid to tax, if they had to tax them at all.
But newer and more expensive cars tend to cost a lot more to tax and they know they won't get any rebate when the keeper changes, hence the OP's question.

Car_54

Goudy said:

There is a bit of a loop hole that certain unregistered traders use to tax a car.

To put a car "in trade" officially the trader must be registered with the DVLA.

Could it possibly be that such a trader would fear that registration would alert HMRC to his status?

Goudy

Maybe.

When you register a car "in trade", DVLA's website asks you for the dealer/trader details. Name, address and postcode etc, then allows you to select that particular dealer. (the dealer details are already in the DVLA system).

You can't just ignore this and carry on putting the car "in trade" without the dealer/trader details.

Obviously there are people out there selling their own cars privately but this is just a straight change of keeper (and the remaining month on the VED will come back to the original keeper).

And you would presume there are people out there trading without registering with DVLA that they are a trader for one reason or another.

Personally I wouldn't trade or sell a car on without going onto to DVLA and registering the change myself, no matter what the other person said.

facade

Goudy said:

There is a bit of a loop hole that certain unregistered traders use to tax a car.

To put a car "in trade" officially the trader must be registered with the DVLA.
The vehicle is then assigned to their business through the DVLA.

If it's not "in trade" anyone can tax it, all they need is the money and the document reference number on the V5C,  but any tax rebate will go to the registered keeper on V5C.  

If a change of keeper is performed at the time of taxing, then that new keeper would get any tax rebate from selling it or sorning it later on, but another keeper appears on the V5C.

What tends to happen is unregistered traders can't put cars "in trade" and don't have trade plates so tend to tax their cars if needed (some will already have some tax and as no new keeper is registered yet, the tax remains valid).
They tend to buy stock and do nothing with the V5C until they sell them on.

The original keeper doesn't really notice as eventually when the keeper does change, they get a VED rebate then.

It's not usually too much of a problem for the unofficial trader as with some older cars are only a few quid to tax, if they had to tax them at all.
But newer and more expensive cars tend to cost a lot more to tax and they know they won't get any rebate when the keeper changes, hence the OP's question.

So the car is never "in trade" and remains registered to the original keeper throughout.  Anyone can tax it (effectively on behalf of the original keeper), online with the DOCREF from the front of the V5c, or at a Post Office - with a V10 form and the V5c .

You cannot tax it with the V5c/2 without registering a new keeper- or at least triggering the new keeper process, and the number on the V5c/2 only works once.

The counter clerk shouldn't issue tax without a name and address on the V5c/2, I suppose they might if you went right at closing time and they would rather knock off than wait for a form to be filled in.....

I suspect there is a typo in the original post and it is just the V5c that was used rather than the V5c/2.

If the tax was paid on the V5c (on behalf of the original keeper) then any refund generated (and PCNs, speeding tickets etc. that the vehicle collects when driven) will go to the original keeper.

Goudy

Yes, with a reg number and the 11 digit reference from the V5C, you can go online and tax anyone's car.

You can tax a car online with and without the reminder letter/code.
With the reminder letter/code, you just enter the code and pay.

Without the reminder letter you can do it one of a number of ways.

You can use the V5C reference number
You will need the vehicle reg number and the 11 digit V5C reference number. (not the V5C/2 reference number, this is a different number though many presume it's the same)

You can use the "last chance letter"

You use the V5C/2 (new keeper part of the V5C)
This obviously prompts a change of keeper.

You can use a email reminder.


Traders who aren't officially recognised by DVLA can't put a car "in trade".
They will (try) buy them and sell them on quickly without putting them "in trade" (as they can't) and don't want to change the keeper.

The OP states the car was never "in trade", the vehicle was still in the original keepers name but they taxed it in the original keepers name.

Now when the keeper next changes, the original keeper will get a rebate on the remaining months of tax no matter who paid for it.

The OP has basically taxed a vehicle in someone else's name and because of it, there is nothing they can do about the rebate.