New car tomorrow - car tax rate.

[sandman77]

Tomorrow I am hopefully picking up a new car. It is a 2017 c-class but because of the options on the car the new list price was a little over £40k.
This pushes it into the tax bracket that requires an additional payment for the 5 years following the 2nd time the car was taxed (in effect the additional tax is paid for years 2-6). The additional payment is £390 a year.
Annoyingly this period for this car ends on the 31st July. If I could wait a month before buying I would but we are currently without a car and need one urgently.
I can buy 6 months road tax but still I will be required to pay an additional £200 when really I will only get 6 weeks benefit from the extra payment.
Is there anyway around this? Can I pay monthly then sorn the car at the end of July and claim a refund? I would then re-tax it the following day?
Any other options or is this simply an example of a government rip off?

[Sc0tchland]

If I've got my sum right you're just £180 a year for tax since it's 2023?

[Truckosaurus]

Pay monthly? Then you'd only pay the extra for June and July, then from August it would be the normal price.

[sandman77]

Sc0tchland said:

If I've got my sum right you're just £180 a year for tax since it's 2023?

No, the car was registered on 1 August 2017. From the 2nd time the car was taxed (1 August 2018) there is an additional tax of £390 per year for 5 years. That takes us to the 31 July 2023.

[sandman77]

Truckosaurus said:

Pay monthly? Then you'd only pay the extra for June and July, then from August it would be the normal price.

Is it as simple as that? I have a feeling they will simply divide £470 by 12 to calculate the monthly payment.

[Alex Z]

You’d like to think the DVLA would allow you to pay monthly and have it automatically drop at the right point.

If that’s not the case, pay for 6 months at the higher rate. When you get to the end of the last higher month, SORN it.

Next day, tax it at the lower rate.

[bencollins4]

sandman77 said:

Truckosaurus said:

Pay monthly? Then you'd only pay the extra for June and July, then from August it would be the normal price.

Is it as simple as that? I have a feeling they will simply divide £470 by 12 to calculate the monthly payment.

They would. Then you would have to SORN at the end of July and re-tax, but there would likely be a few days before you could re-tax, usually around 5, so that may pose a problem for you.

[KenC]

Alex Z said:

You’d like to think the DVLA would allow you to pay monthly and have it automatically drop at the right point.

If that’s not the case, pay for 6 months at the higher rate. When you get to the end of the last higher month, SORN it.

Next day, tax it at the lower rate.

Better still, pay for 12 months and get the full pro-rata amount back when SORNd. If you go down the 6 month route you lose 100% of the premium.

[cayman-black]

Apply for the tax they will adjust the amount now.

[samoht]

cayman-black said:

Apply for the tax they will adjust the amount now.

Yeah, I think they will apply the correct proportion of the supplement for the period remaining to pay. So you shouldn't have to worry about it, just tax as normal.

[ABMA]

cayman-black said:

Apply for the tax they will adjust the amount now.

This is the correct answer.
I have been in a same position 2 months ago.
You will be charged the extra tax for only 2 months + the base £180.

Edited by ABMA on Sunday 18th June 10:14