Vehicle Duty - Premium surcharge

Shamclouder

We bought a new (to us) car in June 2025 and blythely believed the salesman's assurances that the premium surcharge "about a year" to run. We were both a bit caught up in the moment and didn't check the details.

The car was first registered in July 2021 so when we taxed it in 2025 we paid the surcharge and I fully expected to pay it when renewing on the first of june this year. The catch I've just discovered is that renewing next year will also be inside the 5 year window by a month!

Now I'm totally fine with paying the premium this year because I was expacting that; but being caught by a month seems a bit tight. If i were to SORN it for a month in September this year and then restart the tax so that my 2027 renewal falls outside the window would that work? I can't see why it wouldn't but I may be missing something.

We have a 2nd car so taking one off the road for a month wouldn't bother me if it saved £440!

Goudy

VED on new cars is worked out as an initial tax paid when it is registered (usually part of the RRP). This is set on a sliding scale based on the emissions.

Then a flat rate each year with the addition of the surcharge for expensive cars which is for 5 years (so for year 2, 3, 4, 5 and 6).

You can SORN a car at any time but you only get back the full months. As your car has been traded and bought again a month shy of it's anniversary, that looks like it pushed it back a year, but there are ways around it.

One you have discovered, but you don't need to take it off the road for a month, just a day.

So what you could do is tax it when it is due and pay the surcharge. Then SORN it on the last day of the first month to claim all the outstanding months back, you'll get the surcharge back on those 11 months as well.

Then re tax it the next day. It's 6th anniversary will have passed so it will be on the flat rate.

Shamclouder

So actually the simplest thing is to wait until next year and SORN is across the threshold? It was first registered July 15th, so if I SORN it on the 14th I'll get June's VED back, then I tax it on the 16th at the flat rate. That seems to make sense.

I've still paid £900 in extra VED on my "Premium" vehicle (it's only a Tiguan FGS, not a Bentley). 😊

Iceweasel

As far as gov.uk are concerned it's a 'luxury car', as is a Bentley.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81996808#Comment_81996808

"So what you could do is tax it when it is due and pay the surcharge. Then SORN it on the last day of the first month to claim all the outstanding months back, you'll get the surcharge back on those 11 months as well."

Are you certain on that? I am sure there have been other threads on here saying that once the surcharge is paid it is not refunded, even if the tax is refunded at the standard rate.

Goudy

From what I understand, yes. You will get the remaining months back at the higher rate if you SORN.

You don't buy tax and pass it on to the next owner anymore, it's refunded and the new owner pays from then on and that includes the expensive car supplement.

There was a revision in the legislation to account for this misalignment in VED and Supplement dates due to ownership changes.

Administrative amendment to Vehicle Excise Duty expensive car supplement - GOV.UK

The key statement is

"This measure will make an administrative amendment to Vehicle Excise Duty legislation to ensure that where the vehicle licence end date and the expensive car supplement end date do not align, registered keepers of cars in their last year of paying the expensive car supplement are issued correct Vehicle Excise Duty refunds when required."

When required means when it's SORN'd.

jimjames

https://forums.moneysavingexpert.com/discussion/comment/81996978#Comment_81996978

If you SORN in July you won't get June or July's VED back

iainscomputer

Why would you SORN it in the middle of the month as that month has already been paid, cancel the direct debit if there is one & cancel near the end of the month, re-tax at the beginning of the following month.

Mildly_Miffed

https://forums.moneysavingexpert.com/discussion/6668104/vehicle-duty-premium-surcharge

Put the reg into https://vehicleenquiry.service.gov.uk
It will tell you when the supplement expires. "Additional rate applicable until", at the bottom of the listing.
Buy tax before that date - pay supplement.
Buy tax after that date - do not pay supplement.

It's payable on any and all cars that had a LIST PRICE of £40k+, £50k+ if full battery-electric, when new.