49 replies to this topic

[Jordie]

Posted yesterday...

 

https://www.gov.uk/g...cle-tax-changes

 

 

Buying or selling a vehicle

When buying a used vehicle you will be able to use the V5C/2 - new keeper supplement to pay vehicle tax at a Post Office branch, along with the MOT certificate (if applicable) and fee. From 1 October 2014 you will also be able to pay vehicle tax using the V5C/2 online or by phone.

When selling a vehicle to a new vehicle keeper, the vehicle tax will no longer be transferable. Vehicle tax will end when a vehicle is sold and the new keeper will need to get the vehicle taxed immediately before the vehicle can be used.

 

I still aren't sure how the above will work. If you pay direct debit and buy the car on the 14th Feb say, you have to tax it immediately to be able to use it. So will the tax be back dated to 1st feb as currently or will your monthly direct debit run from the 14th.

 

If as currently, DVLA will make a fortune.

The seller would have to pay the full month of Feb. (only complete months qualify for refund)

The buyer would also have to pay the full month of Feb. (back dated to start of month)

 

And they are charging a % for the direct debit option.

[mini-geek]

I wonder if the tax can start and end on any day of the year? Would sort of make sense...

[Merryck]

The seller would have to pay the full month of Feb. (only complete months qualify for refund)

The buyer would also have to pay the full month of Feb. (back dated to start of month)

 

Bingo!

 

This is exactly why they've done it I reckon. I hope I'm wrong, but it would certainly explain it!

[mini-geek]

Yep, just seen it, have to pay full months...

I'm sure that would be classed as a scam if the government weren't doing it..

[Harrison541]

What is the point of this? Other than to make more money...

[RedRuby]

You are all right the seller and the buyer will lose out unless we all start to delay purchase/pick up of vehicle to the first of the month. The other issue I'm uncertain of is whether we will run into problems when trying to tax our new purchase if it is already taxed and the seller has not sorn it and applied for a tax refund as DVLA will show the vehicle we are trying to tax as already being taxed. Wonder if the clever people in the government and DVLA have thought of that.

[Ethel]

You could bet that'd be how it works if the gov't had anything to do with it.

 

However, I think with the demise of the tax disc, there's no longer any reason for it to run on complete months, your road tax can run for a year from the date you paid for it. I dare say they'll still get a second bite at the cherry when the seller asks for their refund!

[eden7842]

What a load of rubbish, whoever thought this idea up is an idiot.

Why change a system thats worked well for years?

[Ethel]

Not only for the law abiding, some used to buy cars with a tax disc and not bother to insure or MoT them.

 

We now have computerised records that can flag up those offenders, so there's even less need for the cost of issuing paper discs. There's even a substantial benefit to the haulage industry who pay enough for their road tax to lose hundreds of pounds paying for whole months.

[Sean C]

I can't wait to see the back of the out dated tax disk.

RIP, ya fecker :)

[AVV IT]

You cynics can whine all you like, I welcome the changes and say about time too!!

The current system is so outdated, all this taxing the vehicle then waiting for the tax disc to come through, then filling out forms and sending the disc back when you want to SORN the car, then waiting weeks for a refund just sucks. It's just keeping over paid administrative civil servents in work at the expense of the tax payer! Give me the convenience of monthly direct debit any day!!! As for the government making money out of part months of tax, by comparison just think how much money they currently make out of us in interest by taking our cash from us up front for 12 months tax in advance!

My understanding is that the reason for the changes is to modernise the system and make it more efficient, which considering the ridiculous amount of administration that there is in the current system, I think it's long overdue!

[lewBlew]

"Vehicle tax will end when a vehicle is sold and the new keeper will need to get the vehicle taxed immediately before the vehicle can be used"

 

REALLY helpful. So the moment the keys are handed over you can't drive it, you're breaking the law if it's on a public road, or you have to make an awkward phone call on the buyer's driveway. But wait, the police national computer takes a few days to update, so nobody knows...?

 

I suppose the people who write these laws have only ever bought cars from dealers, and are used to them being taxed and valeted for them ready for collection at a later date. JOIN THE REAL WORLD!

[SecretSugar]

I like that they are going to do a monthly direct debit, it makes it easier for people breaking it down this way instead of throwing ££ upfront for 6/12 months tax. If you sell your car, it will be easier to just stop the DD and the new owner to quickly set up one. Its easier than filling out forms, sending discs back, waiting for post offices to open etc. Lets hope the DVLA website can handle the volumes of people all jumping on line to tax and sorn their vehicles. I have a sneaky suspicion it may crash. 

[AVV IT]

I really don't see the issue, I've always had to make a phone call to arrange insurance before driving away, so having to do the tax as well isn't really a big deal, especially if it can be done online from a smartphone.

[SecretSugar]

Unsure about the selling and new keeper part, obviously you need to send V5 away to register the new owner, so will the new owner have to wait until this is done and he has the V5 back before he can tax it?

Edited by SecretSugar, 25 February 2014 - 11:19 AM.