Car tax changes 2009 savings

insight101

The UK road tax system is set to change, following Chancellor Alistair Darling’s 2008 budget.

If your renewal is up in the next couple of months it may be worth paying for 6 months tax not 12 months.

For many people on this forum who have sporty cars or even large family shifters next year could be a painful one. All cars registered after 2001 will move to a new tax system that will penalise 80% of drivers. From March 2009 the tax increase is as follows.

CO2g/km 2009 Cost £
0-100 £000
101-110 £20
111-120 £30
121-130 £90
131-140 £110
141-150 £120
151-160 £150
161-170 £175
171-180 £205
181-200 £260
201-225 £300
Over 255 £440
Although these figures have been available for a while some people may not be aware of them so here they are, large saloons/estates, MPVs, sports cars and 4x4s are hit hardest.

If your tax is due in the next couple of months the following co2g/kg cars would be better off paying for 6 months tax now and 12 months in Jan / Feb before next years rises.

161-165 (band d) currently will be £7.75 better off
171 -180 (band e) currently will be £9 better off
181 - 185 (band e) currently will be £36.50 better off
185 - 200 (band f) currently will be £14.50 better off
201 - 225 (band f) currently will be £34.50 better off

example. over 18 months total cost for comparision.

220 co2g/km car due for tax next month July.
currently £210 for 12 months next year rising to £300

July 2008 (£210) + July 2009 (£300) cost 18 months prorata = £360
July 2008 (£115.50) (6 months) + Jan 2008 (£210) cost £325.50

£34.50 saving over 18 months

Hope the above helps saves a little.

gizzydump

Thanks,this is a very useful idea but in my case I need to take a different course of action. My car is in band L which increases from £210 to £415 on 1 April 2009, and my current 12 month tax expires end May 2009. I am looking at ways of cashing in my tax say at the end of Feb 2009 and then retaxing it from 1 March at the latest. I believe I will have a small admin charge to pay but otherwise the tax is refunded pro rata. By this means I hope to delay paying the extra £205 by 11 months. It will also mean that the scheduled further increase on 1 April 2010 will be delayed by 11 months.
I think I will be able to survive with the car off the road for a few days if necessary.
If anyone any tips on how best to do this or indeed if anyone can see any flaw in the logic of this action comments would be appreciated.
I suppose a problem at the DVLA would arise if everyone so affected took this course of action and the car might be off the road for more than " a few days" .

daz9643

The only pitfall could be a delay in the post. You only get refunded for full months remaining so if you post the tax disc to the DVLA on the 30th of the month but they don't receive it until the 1st you could lose a month. It does say on the direct.gov website that you can take the disc to your nearest dvla office. There is a £7 admin charge. If you only bought a 6 month disc you will have paid an extra 10% handling charge which is not refunded. Refunds take up to 6 weeks to process.

Stageshoot

daz9643 wrote: »

The only pitfall could be a delay in the post. You only get refunded for full months remaining so if you post the tax disc to the DVLA on the 30th of the month but they don't receive it until the 1st you could lose a month. .

Not exactly right, the wording is that the returned tax disc must be returned and POSTMARKED by the last day of the month.

So you could keep the tax disc till the last day, then send it back (Get a proof of posting form stamped by the post office) just in case as you then have proof it was sent out as stated. Then you can retax early the next morning, worst case car is off the road 12 hours.

Cheers

FairyElephant_2

If your car is untaxed, you will also have to declare it SORN and keep it off the public road. Also check insurance details for any implications - some policies will be invalid if you are not taxed & MOT'd.

I don't know how long it takes to get all the paperwork sorted, but I think you may be off the road for a good couple of weeks at least. I un-SORNed (think I just made up a new word - but you know what I mean!) my dad's car earlier this year - it had been off the road for 3 years due to him being too ill to drive. I had to take the SORN document to the postoffice to be able to tax it again.

Just a few thoughts you may need to consider - otherwise I think it sounds a great moneysaving plan!

saintscouple

LOL I was about to start a thread on the same thing - well done OP for getting there first :T

Here's a calculator to use for find which band your car falls in, which then you can calculate possiable savings.

http://www.parkers.co.uk/cars/road-tax/

OFI

FairyElephant wrote: »

If your car is untaxed, you will also have to declare it SORN and keep it off the public road. Also check insurance details for any implications - some policies will be invalid if you are not taxed & MOT'd.

I don't know how long it takes to get all the paperwork sorted, but I think you may be off the road for a good couple of weeks at least.

Of course if you drive your car to the post office the day you cash in your tax disk you will be driving home illegally so it might be an idea to walk. As Vicky said above you should be off the road for 12 hours the only delay will be your refund for any remaining tax.

My car is currently band F moving up to band K this means a jump from £210 to £300. My tax runs out at the end of this month so i'm looking at buying 6 months tax Oct 1st which will cover me up until April 1st.

So if i'm understanding correctly I need to cash my tax disk in towards the end of February to get the most life out of both tax disks?

The amount of conflicting dates out there is quite frustrating. I've been looking for the correct swith over date for a while as some places say Jan 1st, others March 1st and others April 1st.

According to the budget http://www.hm-treasury.gov.uk/media/9/9/bud08_completereport.pdf P.130 the correct date is April 1st (not that many will see the funny side!)

OFI

Continued: (sorry I have a daft firewall)

So does this mean the latest opportunity to cash in and repurchase is the the first 2 weeks of March (as the earliest you can buy tax is 2 weeks before the month due)

I think i've confused myself now..

Oh and finally does anyone know the refund handling charges/rates as you don't get a FULL refund IIRC.

I don't want to mess this up!

Depressing thinking about the cost of tax after all of this i've not had the car long (and i'm still paying it off) all this new budget has achieved it taking more money out of my pocket and rapidly depreciating the value of my car*. I just wish i'd found one only 2 months older and come under the pre March 2001 tax bands!

*How exactly does that help one afford to purchase a new more expensive greener alternative?

firebird1

Hello,
I read with great interest.

I have my Land Cruiser sorn'd at the moment, because it is off UK roads, it is else where, that is to say, not in E.U.
Yes, MOT and Insurance still valid, before any one asks)
I plan to drive home for christmas, so I will need to 're-tax' say middle of December, before I hit UK roads, then refund the tax, and sorn again, middle of January.

Are you keeping up at the back, do pay attention young man,

So for a 2 week run back on UK roads, it will cost me 2 months road tax.
Am I correct ?
Unless just as I pass the last post office out of Dover, on 31st December, I start the refund there and then. Get it dated last day, etc.
Take a chance to the ferry ?
Colour photocopy in the windscreen?
Would you?

bryanb

firebird1 wrote: »

Hello,
I read with great interest.

I have my Land Cruiser sorn'd at the moment, because it is off UK roads, it is else where, that is to say, not in E.U.
Yes, MOT and Insurance still valid, before any one asks)
I plan to drive home for christmas, so I will need to 're-tax' say middle of December, before I hit UK roads, then refund the tax, and sorn again, middle of January.

Are you keeping up at the back, do pay attention young man,

So for a 2 week run back on UK roads, it will cost me 2 months road tax.
Am I correct ?
Unless just as I pass the last post office out of Dover, on 31st December, I start the refund there and then. Get it dated last day, etc.
Take a chance to the ferry ?
Colour photocopy in the windscreen?
Would you?

You would also be taking a chance driving through EU to your non EU destination.

firebird1

Yes, I see your point, first stop France,

Mmmmm, let me think on that.