MSE News: Drivers collectively pay 'double' after tax disc overhaul, says AA

Former_MSE_Paloma
Former_MSE_Paloma Posts: 531 Forumite
I've been Money Tipped! Newshound!
in Motoring
The Government has made millions from the 'double taxing' of cars following its radical move to scrap paper tax discs...
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Drivers collectively pay 'double' after tax disc overhaul, says AA

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Comments

  • LandyAndy
    LandyAndy Posts: 26,377 Forumite
    First Anniversary First Post
    Is this new news?


    It was raised and discussed here extensively when the new rules came in.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    First Anniversary Name Dropper First Post
    Hardly a "radical" move...

    And as for...
    The AA says it has heard of cases where a car is transferred from one member of the family to another, but the family have been unpleasantly surprised to find that their VED was not refunded for that month, while the new owner had to purchase VED for the full month.

    Umm, yes, it's a change of keeper. Of course it applies there, too. The AA ought to stick to helping people who've broken down, and leave the hype and scaremongering to the red-top tabloids.

    I can't get particularly excited, tbh.
  • Cornucopia
    Cornucopia Posts: 16,155 Forumite
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    I don't pay any VED on my car... legally.
  • puk999
    puk999 Posts: 552 Forumite
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    The government should allow tax to expire on any day (similar to a MOT), not just month ends and charge the customer per day of tax used. Introduce a minimum term of a month to stop motorists having tax for only a couple of days and swamping the system.
  • pogofish
    pogofish Posts: 10,852 Forumite
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    How many threads on this do we have already?
  • Johno100
    Johno100 Posts: 5,259 Forumite
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    puk999 wrote: »
    The government should allow tax to expire on any day (similar to a MOT), not just month ends and charge the customer per day of tax used. Introduce a minimum term of a month to stop motorists having tax for only a couple of days and swamping the system.

    Or scrap this anachronism once and for all and add the tax onto the price of fuel, then the polluter really does pay.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    First Anniversary Name Dropper First Post
    puk999 wrote: »
    The government should allow tax to expire on any day (similar to a MOT), not just month ends and charge the customer per day of tax used.

    Which would almost certainly require the entire VED management computer systems to be redeveloped pretty much from scratch, since it's never needed to be any more granular than monthly - so it won't be any more granular than monthly. And that would be a long and costly project.
    Johno100 wrote: »
    Or scrap this anachronism once and for all and add the tax onto the price of fuel, then the polluter really does pay.

    I worked the numbers for a similar thread elsewhere a little while ago. It'd be about 12p/litre to break even nationally. That would then be carried very disproportionately, with even low mileage users of fuel efficient cars seeing a rise in annual cost - and many of them are pensioners. The other group that would be very heavily hit is business, especially manufacturing and haulage. You'd also see a big rise in illicit fuel purchasing - cross-border in NI, cross-channel in the SE, and all sorts of grey importation and dodgy storage/transportation. If you've ever been to Tunisia, it's very common to see people standing at the roadside with piles of plastic barrels and a funnel - and pickups loaded with empties heading south to re-stock in Libya, and overloaded with full heading north.

    Or we could put this "double-dip" into proportion, and remember that we're talking about a minority of those buying used cars (2/3 of used vehicle keeper changes were of un-taxed cars, from the trade), and that we're talking about a tenner or so on average - less than half what insurers usually charge to change the car on a policy, and a fraction of the cost of changing vehicle by the time you've factored in the time and hassle factor.
  • System
    System Posts: 178,093 Community Admin
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    Find it a bit rich the AA have "expressed outrage" given their auto renewal price tactics :mad:

    Not condoning the DVLA either but not surprised either.
  • Norman_Castle
    Norman_Castle Posts: 11,871 Forumite
    Photogenic First Post Name Dropper First Anniversary
    Simple solution would be to have any tax not refunded due to the mid month cancellation remaining valid regardless of ownership.

    Potentially loosing about £15 when you change cars is miniscule compared to the total cost of driving.
  • ALNorton
    ALNorton Posts: 1 Newbie
    I taxed my car the 1st Feb but then 'sold' the car to a family member. I still haven't received a refund, despite two phone calls and completing the online complaints form.
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