We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
VED Refunds - clear as mud!
Options
sleepymans
Posts: 902 Forumite
in Motoring
I owned a vehicle which I paid the £123.75 VED online for 6 months (as I always have done) on 1st October 2014 - obviously under the new VED system there was no paper disc issued, but other than that all was normal.
During October I decided to transfer the car to my OH - so we completed the registration document tear off portion and sent it off to DVLA Swansea as per the instructions on it, and duly, in a few days I received a cheque refund for £93.75. Was a little miffed that OH was then made to pay another £123.75 to tax the vehicle from 1st October 2014....but sucked up the fact that the DVLA got the VED doubled for that month. Though I was puzzled as to how they calculated my one month's tax as £30 ? seeing as £123.75/6 was £20.625 when I went to school!!
But, it gets worse....on 19 November my BIL living 100 miles away, had the misfortune to be stranded without a roadworthy car at a time of domestic emergency and my OH offered him the same vehicle to keep and although no money exchanged hands the tax and insurance and ownership had changed and so we followed the new procedure and BIL and OH completed section 10 of the V5C/2 which he took to the post office on 20 November when he (BIL) paid the whole 6 months VED of £123.75 again. The Post Office gave him a receipt and kept the V5C portion which they said they have to scan and send to DVLC direct.
Skip forward to yesterday when OH received a refund cheque from DVLA for........... £56.25!!
We realise November would be another whammy for the DVLA when again the same month's VED has been paid for by 2 owners....but how on earth can they have deducted £67:50 for 2 months VED??
Do they deduct an admin fee? How do they calculate a month of VED?
Of course there was no explanation with either of the refunds we received, merely the vehicle registration number.
Having searched the gov uk website it only mentions refunds being for remaining whole months and not how they calculate a month's VED for refund purposes.
We rang DVLA Swansea but a recorded message informs us merely to write in with any query after paying the cheque in. He has paid the cheque in and I am drafting a letter with documentary evidence in support, but I wondered if anyone here knows the answers to my red text above?
Talk about rip-off Britain:eek:
During October I decided to transfer the car to my OH - so we completed the registration document tear off portion and sent it off to DVLA Swansea as per the instructions on it, and duly, in a few days I received a cheque refund for £93.75. Was a little miffed that OH was then made to pay another £123.75 to tax the vehicle from 1st October 2014....but sucked up the fact that the DVLA got the VED doubled for that month. Though I was puzzled as to how they calculated my one month's tax as £30 ? seeing as £123.75/6 was £20.625 when I went to school!!
But, it gets worse....on 19 November my BIL living 100 miles away, had the misfortune to be stranded without a roadworthy car at a time of domestic emergency and my OH offered him the same vehicle to keep and although no money exchanged hands the tax and insurance and ownership had changed and so we followed the new procedure and BIL and OH completed section 10 of the V5C/2 which he took to the post office on 20 November when he (BIL) paid the whole 6 months VED of £123.75 again. The Post Office gave him a receipt and kept the V5C portion which they said they have to scan and send to DVLC direct.
Skip forward to yesterday when OH received a refund cheque from DVLA for........... £56.25!!
We realise November would be another whammy for the DVLA when again the same month's VED has been paid for by 2 owners....but how on earth can they have deducted £67:50 for 2 months VED??
Do they deduct an admin fee? How do they calculate a month of VED?
Of course there was no explanation with either of the refunds we received, merely the vehicle registration number.
Having searched the gov uk website it only mentions refunds being for remaining whole months and not how they calculate a month's VED for refund purposes.
We rang DVLA Swansea but a recorded message informs us merely to write in with any query after paying the cheque in. He has paid the cheque in and I am drafting a letter with documentary evidence in support, but I wondered if anyone here knows the answers to my red text above?
Talk about rip-off Britain:eek:
:A Goddess :A
0
Comments
-
Your VED is £18.75 a month.
If you pay 6 months they rip you off for a 10% "admin fee" that you don't get back. 6 x £18.75 is £112.50 + £11.25 = £123.75
They refund you £18.75 for each whole unused month (and then rip the new keeper off for £18.75 for the partial month that you had already paid for and didn't get refunded....)
Sounds like they have charged OH 3 months when they should have charged 2, if your dates are correct.I want to go back to The Olden Days, when every single thing that I can think of was better.....
(except air quality and Medical Science
)0 -
Just found this:You’ll receive a refund for each full month left on your tax disc, assuming you post it to the DVLA before the first day of the first month of the refund.
You will not receive the 10% surcharge which is paid on six-month tax discs.
From: http://www.findlaw.co.uk/law/motoring/vehicle_tax/9936.html
So, you should have got back five months worth of VED at the monthly rate a 12-month payment works out to.
According to this:
http://www.fta.co.uk/export/sites/fta/_galleries/downloads/taxation/v149_2014.pdf
If you paid £123.75 for six months, you would have paid £225 for 12 months. That's £18.75 per month.
So, you should have received £93.75 (five months) and your OH should have received £75 (four months).
Your refund was exactly right.
Your OH received a refund for three months instead of four. It says on the page above that you need to post it before the 1st of the month (December in his case), not that they need to receive it by then. It appears that they made a mistake with his refund, and he should have got an extra £18.75.0 -
facade explained it far more succinctly than I did.
And the lesson from this is that if you plan to sell a car soon, still pay for 12 months' VED rather than 6 months.0 -
You did a good job too with links and everything.;)
I got my renewal this week
12 months £230 = £23 pcm
6 months £126.50 = £115 + £11.50
But by DD as a one off 6 months is £120.75 (only 5% admin fee)
12 monthly payments total £241.50 (twice the £120.75)
Have I missed something? I can pay a 1 off card payment of £126.50 or a 1 off direct debit payment of £120.75. is a card payment really that much more expensive to process, or will the direct debit suddenly become re-occuring?I want to go back to The Olden Days, when every single thing that I can think of was better.....
(except air quality and Medical Science)0 -
12 months £230 = £23 pcm
Errrrr, maths fail.
Have I missed something? I can pay a 1 off card payment of £126.50 or a 1 off direct debit payment of £120.75. is a card payment really that much more expensive to process, or will the direct debit suddenly become re-occuring?
So for six months tax, there's a 10% admin charge for card payments, and a 5% admin charge for direct debit.
I suspect the DD would indeed become recurring, but there's nothing to stop you paying and then cancelling the DD so they can't take it in six months...0 -
pinkteapot wrote: »Errrrr, maths fail.
Should have used the calculator
Anyway, still cheaper to buy the 12 months and then get the refund when I get rid of it in the Summer.I want to go back to The Olden Days, when every single thing that I can think of was better.....
(except air quality and Medical Science)0 -
Ahhh.....as ever, MSE members are a trillion times more helpful than "officials":)
Thanks Guys...hopefully, by providing the evidence to DVLC my OH should get another £18.75 refund which is due.... Hmmmmm I will post if and when we get a response.
When my remaining vehicles need VED renewed I shall opt for the monthly DD version which seems a tiny bit fairer.
Cheers peeps xx:A Goddess :A0 -
sleepymans wrote: »Ahhh.....as ever, MSE members are a trillion times more helpful than "officials":)
Thanks Guys...hopefully, by providing the evidence to DVLC my OH should get another £18.75 refund which is due.... Hmmmmm I will post if and when we get a response.
When my remaining vehicles need VED renewed I shall opt for the monthly DD version which seems a tiny bit fairer.
Cheers peeps xx
Don't forget to ad YOUR admin charge for dealing with THEIR mistake!!:rotfl:0 -
Here is hoping it is simple to sort out.
Sounds like there is no longer an optimum time to transfer a car now.0 -
blackshirtuk wrote: »Don't forget to ad YOUR admin charge for dealing with THEIR mistake!!:rotfl:
I know this was said in jest but it seems fair that if DVLC charge an admin fee and get it wrong, then the customer should be entitled to charge a 'sorting it out fee' also or at least a refund of the admin charge as they failed to provide the service paid for. Obviously this isn't going to wash with DVLA but would you be likely to win if you took them to the small claims or is the amount just too small (more the principal)?0
This discussion has been closed.
Categories
- All Categories
- 12 Election 2024: The MSE Leaders' Debate
- 344.2K Banking & Borrowing
- 250.4K Reduce Debt & Boost Income
- 450.1K Spending & Discounts
- 236.3K Work, Benefits & Business
- 609.7K Mortgages, Homes & Bills
- 173.6K Life & Family
- 248.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards