New tax rules - Double tax

[bledd]

Screws things up for anyone playing bangernomics.

It's getting more and more of a PITA to buy a used car. Especially a SORN'd car.

 

[MassiveJim]

How is the system regulated ?
ie when the V5 is submitted it automatically flags a tax refund or does the seller have to initiate the refund themselves ?

I ask as it surely leaves the system "slightly" open to abuse.

If the seller keeps the car taxed until the end of the month
car doesn't have a tax disk any more so it will still be registered as taxed until end of the month, on a "fly by" check the car wouldn't flag as "dirty" surely ?

 

[~Divine~Wind~]

As far as I am aware, you get your remaining tax refunded when you sell a car. So its swings and roundabouts.

Yes but as far as I undertsand it it's still only FULL months.
So if you chuck in your tax disc on the 2nd of the month, you lose the entire month and the buyer has to tax again for the entire month.

when they suggested ditching the tax disc and going DD on payment I really thought they'd also pre-rata everything finally... nope

 

[therealpieman]

If you buy a ex demo small car that was zero tax for the first year, you will have to pay the normal rate when you get it rather than getting the remainder of the free tax, and the dealer will get their £0 refund...

 

[GT3]

I'm usually the one who gets shafted by selling a car with loads of tax left on it and end up buying cars with days of tax left on them. So will probably work out better for me!

 

[MassiveJim]

I'm usually the one who gets shafted by selling a car with loads of tax left on it and end up buying cars with days of tax left on them. So will probably work out better for me!

I doubt anyone is going to reduce the price of the vehicles they are selling due to this though, so this means anyone buying a car now gets shafted.

 

[Glaucus]

Slightly unrelated, but if you have a work vehicle, you'll need to check online that they've paid
https://www.vehicleenquiry.service.gov.uk/

I just hope the website is updated instantly. Be interesting on the first, will I be staying at home or not.

 

[bledd]

"Please be aware that if you have taxed, made a SORN or had an MOT in the last 5 days these details may not have updated. For further information on MOT’s please visit"

Handy site though, lazy man's way of checking when things are due

 

[Glaucus]

"Please be aware that if you have taxed, made a SORN or had an MOT in the last 5 days these details may not have updated. For further information on MOT’s please visit"

Handy site though, lazy man's way of checking when things are due

Well that's pretty bad, so how as a driver do I check tax, as it's my responsibility according to the law.

 

[ShakenNstirred]

Well that's pretty bad, so how as a driver do I check tax, as it's my responsibility according to the law.

you still get a reminder when its due

 

[Glaucus]

you still get a reminder when its due

I don't get anything, as it's a company vehicle.

 

[ShakenNstirred]

do they tax it or do you?

 

[Glaucus]

do they tax it or do you?

They do obviously.

 

[GT3]

I doubt anyone is going to reduce the price of the vehicles they are selling due to this though, so this means anyone buying a car now gets shafted.

Not really? Just seems more fair in that you only pay for your own tax not the next owners when you sell it.

Also for people with more than one car, say kit/track/classic cars that are only used occasionally, you can now effectively tax as you go. Just choose the direct debit option and then just sorn it when you want to stop using it. A lot less hassle than sending the disc back and waiting for a cheque back. A 5% direct debit surcharge is also less than the previous 6 months surcharge.

I can't really see any downsides to be honest to this new system apart from the minor issue of only being able to tax per whole month but thats the same as before.

 

[Skeeter]

I give it 2 weeks before there is a thread on here from someone who bought a bangernomics car for £100 as it had 11 months tax and an MOT, only to then find out they need to stump up another £200 as its now untaxed .

I don't really see the issue with the finaces of it, it's small fry for most people. But it is yet another thing that makes buying or selling second hand cars a right pain, what with the rules around uninsured cars with tax and what not.

 

[Jordan777]

So whats happens now for example if i was to buy a car do it up but not put it in my name as i want to sell it on. can i tax it, if the log book is not be in my name. IF i was to tax it for 2 weeks for example to use it for a few weeks to check its fine and running ok then can i just contact the DVLA and just get a refund once sold it .. ?

i do a bit on the side you see

2nd reason i think its a bad idea.. there is a lot of people who will go buy cars private at night, during the day etc. I have been to view cars late at night and i cant really see people turning up deciding to buy the car then calling a 0300 number outside someones house late at night to tax it or trying to do it on online on there phone.

its not going to stop un taxed cars driving the roads, if anything people will go to view cars and just drive them home with no tax regardless because there cant be arsed messing about. simple really

 

[johnny6]

So whats happens now for example if i was to buy a car do it up but not put it in my name as i want to sell it on. can i tax it, if the log book is not be in my name. IF i was to tax it for 2 weeks for example to use it for a few weeks to check its fine and running ok then can i just contact the DVLA and just get a refund once sold it .. ?

i do a bit on the side you see

2nd reason i think its a bad idea.. there is a lot of people who will go buy cars private at night, during the day etc. I have been to view cars late at night and i cant really see people turning up deciding to buy the car then calling a 0300 number outside someones house late at night to tax it or trying to do it on online on there phone.

its not going to stop un taxed cars driving the roads, if anything people will go to view cars and just drive them home with no tax regardless because there cant be arsed messing about. simple really

Except it will be taxed as the refund to the seller will be on a time delay

 

[Meridian]

Correct, but that wasn't a problem before because when you bought a car, it came with the tax disc 99% of the time.

Only if you bought privately. Garages got the refund as soon as they bought the vehicle, then taxed it again when it was sold. I assume they have some getout for letting you test drive it between times.

 

[Semple]

2nd reason i think its a bad idea.. there is a lot of people who will go buy cars private at night, during the day etc. I have been to view cars late at night and i cant really see people turning up deciding to buy the car then calling a 0300 number outside someones house late at night to tax it or trying to do it on online on there phone.

its not going to stop un taxed cars driving the roads, if anything people will go to view cars and just drive them home with no tax regardless because there cant be arsed messing about. simple really

Except it will be taxed as the refund to the seller will be on a time delay

So are we saying the tax is temporarily transferred until the original owner applies for their refund?

Example:
Person A sells car to Person B. They fill in the V5C to send away, Person A sends off the request for tax refund. Person B drives car home to arrange for tax on the car - at this point Person B doesn't actually have any tax on the vehicle as according to the system (until it's updated) Person A still owns the car. How will insurance play into this as well?

 

[Hagar]

Person B can tax car directly if it is MOT'd by quoting the 11 digit reference on the V5C obtained from the buyer. Either online, by phone or by calling in at nearest PO.

The tax will still be current for a few hours, days anyway. Insurance is unaffected by car tax.