Car Tax Question

--Mike--

--Mike--

--Mike--

Associate
Joined
10 Aug 2006
Posts
805
Location
Northampton
I'm picking up a car tomorrow which should be liable for the extra 'Additional Rate' until 31 May 2023. Now seeing this is only 2 months away (in tax terms if paying tomorrow), how is the best way to pay so that I don't pay for the entire year at the higher rate?

Is there the option to pay by monthly direct debit for 2 months and then do a single payment for the rest at the lower rate? Anyone with any experience of this? Thanks
 
Haggisman said:
If you put the reg into the online tax page, how much does it say it should be? I thought they did it pro-rata?
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This is what I don't know. I would have hoped that the DVLA would pro-rata it but wasn't sure and thought they might just charge the full higher rate for the entire year - wouldn't be surprised!!

Gov.uk site just says it's liable for the increased rate but doesn't show the a amount payable.
 
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So you've got to tax the car ?
Either wait until end of May, or just pay monthly, then when the June one is due, cancel it, and pay 12 months? Or just keep paying monthly as it should reduce I would have thought
 
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ShiWarrior said:
So you've got to tax the car ?
Either wait until end of May, or just pay monthly, then when the June one is due, cancel it, and pay 12 months? Or just keep paying monthly as it should reduce I would have thought
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Yes, I'm picking it up tomorrow so I'm going to have to tax it before I leave the dealership.

I was thinking of doing the monthly DD and then perhaps SORN it for a day at the end of next month and renew it on the first of June for a full year in one payment. Sound plausible?
 
Pay month by month if that's still a thing (i.e. not direct debit) or do 6 months, and then a year.

Don't think you can SORN it and taxi it within a certain amount of time.
 
www.gov.uk

Vehicle tax for cars registered from 1 April 2017

The way vehicle tax is calculated is different for cars that were first registered with DVLA from 1 April 2017.
www.gov.uk www.gov.uk

After 5 years of paying the additional rate​

You will no longer pay the additional rate. Your vehicle will be taxed at one of the standard rates depending if it uses petrol, diesel, or alternative fuel.

If the date your tax is due for renewal is not the same as the date the additional rate ends, the vehicle tax payment will be adjusted to take this into account.

If you make a single payment then this will be calculated for you and the remaining additional rate will be included.

If you pay by monthly Direct Debit, the values will be adjusted so that the additional rate is paid in the remaining months. For example, if you have 3 months left to pay the additional rate, the first 3 months of your Direct Debit payments will be weighted to include them.
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Sounds like it will account for it, not charge you a whole year of additional rate
 
Kenai said:
www.gov.uk

Vehicle tax for cars registered from 1 April 2017

The way vehicle tax is calculated is different for cars that were first registered with DVLA from 1 April 2017.
www.gov.uk www.gov.uk



Sounds like it will account for it, not charge you a whole year of additional rate
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Brilliant, thanks for finding that. Sounds like I'll be ok then just going for the full amount in one payment. OcUK to the rescue again :)
 
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