Ripoff VED

Author
Discussion

vpr

Original Poster:

3,776 posts

243 months

Wednesday 3rd May 2023
quotequote all
So I tax my car for 6 months in 1st April for 6 mths at a bargain price of £382.50.

I use it for 3 days (not really relevant).

I SORN it well before the end of April and I have just received a £289 refund so just short of £100 for the pleasure.

How on this planet do they work that out??

An absolute stripe up of the highest order and they wonder why people don’t bother.

cuprabob

15,347 posts

219 months

Wednesday 3rd May 2023
quotequote all
Doesn't help you now but you pay a 5% premium for taxing for 6 months. You could have saved a little by taxing for 12 months, no premium, and you would have been refunded the 11 unused months when you SORNed it. No way of getting around paying for a full month in April either way.

vpr

Original Poster:

3,776 posts

243 months

Wednesday 3rd May 2023
quotequote all
I suspect if I’d have taxed for 12 months I wouldn’t have got 11 months back.

I’ve paid more than a 5% increase for 3 months

vpr

Original Poster:

3,776 posts

243 months

Wednesday 3rd May 2023
quotequote all
I will however try 12 months next time and report back

I know if you pay by DD monthly they take 2 months straight off.

jeremyc

24,243 posts

289 months

Wednesday 3rd May 2023
quotequote all
It's actually a 10% surcharge for a single 6 month payment which is not refunded: https://www.gov.uk/vehicle-tax-refund

gov.uk website said:
You’ll automatically get a refund cheque for any full months left on your vehicle tax. The refund is calculated from the date DVLA gets your information. The cheque is sent to the name and address on the vehicle log book.

You will not get a refund for:
  • any credit card fees
  • the 5% surcharge on some direct debit payments
  • the 10% surcharge on a single 6 month payment
So, pay for 12 months on a card that doesn't attract any fees and you'll get the full unused months back.

sixor8

6,496 posts

273 months

Wednesday 3rd May 2023
quotequote all
cuprabob said:
Doesn't help you now but you pay a 5% premium for taxing for 6 months. You could have saved a little by taxing for 12 months, no premium, and you would have been refunded the 11 unused months when you SORNed it. No way of getting around paying for a full month in April either way.
It's actually 10% for buying only 6 months. For example, a car that is £200 for 10 months is £110 for a single payment for 6 months. It is 5% if you sign up to pay by direct debit, presumably to encourage it :

https://www.gov.uk/vehicle-tax-rate-tables/rates-f...

jeremyc

24,243 posts

289 months

Wednesday 3rd May 2023
quotequote all
The sums in your case are as follows:

6 months VED: £347.73 + 10% surcharge of £34.77 = £382.50

Refund = £347.73 * 5/6 = £289.77.

nerd

Mr Whippy

29,432 posts

246 months

Wednesday 3rd May 2023
quotequote all
They need to add it onto petrol.

Fairer and directly correlated to CO2 output, rather than the bracket bks which is near meaningless.


I think DD is the way to go for a full year, assuming inflation on salaries is higher and interest in the banks is now a thing, you can pay those final payments for the year more easily than at the start.

Yodafone

427 posts

210 months

Wednesday 3rd May 2023
quotequote all
Mr Whippy said:
They need to add it onto petrol.

Fairer and directly correlated to CO2 output, rather than the bracket bks which is near meaningless.


I think DD is the way to go for a full year, assuming inflation on salaries is higher and interest in the banks is now a thing, you can pay those final payments for the year more easily than at the start.
Exactly add to fuel then you pay for what you use and stops s driving around untaxed.

anonymous-user

59 months

Wednesday 3rd May 2023
quotequote all
Mr Whippy said:
They need to add it onto petrol.

Fairer and directly correlated to CO2 output, rather than the bracket bks which is near meaningless.

.
Using the money from fuel duty and tax is a great idea but we don't need to pay anymore on fuel, they make enough as it is on it.

e600

1,360 posts

157 months

Wednesday 3rd May 2023
quotequote all
They should refund on days used, it’s a simple computer task to identify the refund payment.

cuprabob

15,347 posts

219 months

Wednesday 3rd May 2023
quotequote all
sixor8 said:
cuprabob said:
Doesn't help you now but you pay a 5% premium for taxing for 6 months. You could have saved a little by taxing for 12 months, no premium, and you would have been refunded the 11 unused months when you SORNed it. No way of getting around paying for a full month in April either way.
It's actually 10% for buying only 6 months. For example, a car that is £200 for 10 months is £110 for a single payment for 6 months. It is 5% if you sign up to pay by direct debit, presumably to encourage it :

https://www.gov.uk/vehicle-tax-rate-tables/rates-f...
Thanks for correcting me, I hadn't realised that.

vpr

Original Poster:

3,776 posts

243 months

Wednesday 3rd May 2023
quotequote all
Paying for it on fuel always made perfect sense

The juicier ur car the more u pay
More miles you do the more u pay
Foreigners pay

After all you can only drive one car at a time and taxing multiple cars is impossible for me

But the trouble is now that electric cars wouldn’t be paying and they need to start if not already

Pica-Pica

14,353 posts

89 months

Wednesday 3rd May 2023
quotequote all
Mr Whippy said:
They need to add it onto petrol
.
I agree - leave diesel alone.

InitialDave

12,163 posts

124 months

Wednesday 3rd May 2023
quotequote all
e600 said:
They should refund on days used, it’s a simple computer task to identify the refund payment.
This is not a capability issue in the slightest.

They just don't want to.

Like the change to not transferring remaining tax with change of ownership, they like being able to get money from both old and new owners that month.

Still, owning a car is more expensive in some other countries, I suppose.

Gemaeden

293 posts

120 months

Wednesday 3rd May 2023
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Many people are now reclaiming Direct Debit payments from their bank. Makes things a lot cheaper.

Mr Whippy

29,432 posts

246 months

Wednesday 3rd May 2023
quotequote all
InitialDave said:
e600 said:
They should refund on days used, it’s a simple computer task to identify the refund payment.
This is not a capability issue in the slightest.

They just don't want to.

Like the change to not transferring remaining tax with change of ownership, they like being able to get money from both old and new owners that month.

Still, owning a car is more expensive in some other countries, I suppose.
Yep, I’d be untaxing and re-taxing mine day to day.

It’s a de-facto PAYG system if you could get refunds to daily levels of granularity.
Which would then beg the question of it all being on fuel used again.


It’s got to be worth about 1 or 2 pence on fuel hasn’t it? And they can sack off the entire ‘untaxed car’ issue, and all the associated bureaucracy cost.

For EVs put a bit extra on house electric hehe

Skyedriver

18,498 posts

287 months

Wednesday 3rd May 2023
quotequote all
Just been on taxing my Lotus Excel 1988, rate has risen from £295 to £325, for a car that gets used a few days a month. Bar Stewards.

Jordie Barretts sock

5,836 posts

24 months

Wednesday 3rd May 2023
quotequote all
Skyedriver said:
Just been on taxing my Lotus Excel 1988, rate has risen from £295 to £325, for a car that gets used a few days a month. Bar Stewards.
Is that what PLG is now? I taxed my Chimaera for 12 months at the beginning of April, can't remember how much is was.

POORCARDEALER

8,539 posts

246 months

Wednesday 3rd May 2023
quotequote all
Work this out .

Sprinter single car transporter - last one was a euro 5 10 plate , VED £140 Pa.
Replaced with an allegedly cleaner euro 6 adblue sprinter 18 plate VED £325 Pa ?????