Car Tax amomaly

livers · Mar 30, 2015

Just been checking car's status, cos I'm paranoid, and found an anomaly

12 months in one hit £180
6 months in one hit £98 fair enough
Now monthly DD
12 months by monthly DD total £198 fair enough again
6 months by monthly DD total £94.50

So if you buy your tax only for 6 months i.e. landy/ bikers/classics it is cheaper to do DD rather than one payment?
Sssssshhhhh

bankz5152 · Mar 30, 2015

Mine is
£285 for 12 months one off payment
£156.75 for 6 months = £313.50
£149.63 for 6 months via DD = £299.26
£299.45 if paid monthly

To me its worth the extra £15 or so to have the cost spread out

honolulujoe · Mar 30, 2015

there is obviously a glitch in their system with the 6m tax 6m dd, sooner or later they will spot it, whether they will bill you for the shortfall only time will tell.

bankz5152 · Mar 30, 2015

I dont think so. I think its cheaper because you are then 'on the system' to be billed as and when they please. That said it is described as a beta system so who knows.

Littelwill · Mar 30, 2015

You sir have to much time....

honolulujoe · Mar 30, 2015

bankz5152 said:
I dont think so. I think its cheaper because you are then 'on the system' to be billed as and when they please. That said it is described as a beta system so who knows.

could you explain why 12 months is more expensive when paying by direct debit then c.f. a lump sum i.e. as one normally expects to do, as you are "on the system" in just the same way.

The price of ved is the published price of ved there are no discounts for payment by instalments, payment by instalments attracts interest or some form of penalty in exchange for not having to pay in one go.

bankz5152 · Mar 30, 2015

Because its one payment done and dusted. If you pay 6 months they have half the cash so charge 'interest' for the pleasure

When I checked earlier there was no option to pay 12 months DD just 12 months one off or 6 months DD then 6 months DD.

laracroft · Mar 30, 2015

Bollocks, I didn't think to check. Just paid DD for 12 months, because I can't be affording it in one hit last year. Oh well, I'll make sure not to tell anyone, and hopefully in November, it may still be a glitch.

livers · Mar 30, 2015

ssssshhhhhhh................no capitals

thats why i called it an amomoly

honolulujoe · Mar 30, 2015

bankz5152 said:
Because its one payment done and dusted. If you pay 6 months they have half the cash so charge 'interest' for the pleasure

When I checked earlier there was no option to pay 12 months DD just 12 months one off or 6 months DD then 6 months DD.

No offence but I don't think you read my post correctly and your explanation does not answer the question I asked.

from livers first post
12 months in one hit £180 12 months by monthly DD total £198

18 pounds more

6 months in one hit £98 DD 6 months by monthly DD total £94.50

£3.50 less.

the 6m DD figure is clearly wrong and has been incorrectly calculated by the system it can not be less than the published rate of 6m tax, sooner or later it will be corrected.

livers · Mar 30, 2015

OK WHY NOT ASK WHATS WRONG ON HTTP.WWW.DIRECTSCREWYOUUPTHEARSE.COM?

sometimes i wonder why i even bovver....................DO I LOOK BOVERRD?

bankz5152 · Mar 30, 2015

honolulujoe said:
No offence but I don't think you read my post correctly and your explanation does not answer the question I asked.

from livers first post
12 months in one hit £180 12 months by monthly DD total £198

18 pounds more

6 months in one hit £98 DD 6 months by monthly DD total £94.50

£3.50 less.

the 6m DD figure is clearly wrong and has been incorrectly calculated by the system it can not be less than the published rate of 6m tax, sooner or later it will be corrected.

Sorry im extremely tired.. Though why can't it be less?

honolulujoe · Mar 30, 2015

its an absolute amount, once it is decided in the budget what the amount is, that's what it is and one has to pay it, I can't quote the appropriate legislation and it wouldn't be the first time the revenue system has been at fault. Same way you don't get let off income tax by paying it in a different way, after the appropriate income allowances the tax rate is the tax rate.

If they don't notice and some people save some cash then alls well and good, but if it does get picked up and sooner or later it will, they are entitled to get the shortfall back irrespective of whether it was their fault or not. If a lot of people are affected they might not bother. Enjoy it while it lasts.

honolulujoe · Mar 30, 2015

I am more than happy to stand corrected if I am wrong btw

maybe there is a tax accountant on here or god forbid employees of customs and excise

Yoyodyne · Mar 30, 2015

The amount they can claw back will be so little they prob'ly won't bother. And the reason they like DD is so they can put the price up with little fuss. They only need to tell you and your money mysteriously disappears as if by magic!

timtheenchanteruk · Mar 31, 2015

Its quite simple.

Over the counter/card transaction its half of the full year plus 10%

If you pay by monthly DD its 1/12 of the full year plus 5%

For you to only tax by DD for 6 months, you would have to go and cancel the DD AND your insurance. because under new rules you can't have it SORN and insured.
So basically if its going to be used on the road, you have to tax and insure for 12 months, to date Ive not seen any Drive and Storage polocies out there, and who would want their pride and joy sat uninsured for 6 months.

honolulujoe · Mar 31, 2015

"under new rules you can't have it SORN and insured"

bugger, I didn't know that, my s3 is sorned and nowhere near mot ready and the insurance renews around mid april or get a laid up policy if they are still allowed, pi$$er is I am on min premium - £78 pa - with the insurer so a laid up policy would still cost the same as an ordinary one.

Oldfogey · Mar 31, 2015

So where are these new rules?

Look at the official website https://www.gov.uk/vehicle-insurance/uninsured-vehicles

Is this one of those ideas that were floated, but never happened?

honolulujoe · Mar 31, 2015

looks like its ok then, I keep mine insured partly because its the same cost as a laid up policy but also I still have the romantic notion I will get off my a$$ and get it back on the road

sometime soon

Bump · Mar 31, 2015

honolulujoe said:
"under new rules you can't have it SORN and insured"

That's bull s&*t - it has nothing to do with the gov if you have insurance on something. (only if you don't) - we've had insurance for "garage only, project vehicles" which are obviously sorned. you can insure anything you want, sports people insure various limbs, etc. so, the gov. can't say "you can't insure your car if you SORN it" - are they taking on liability if it gets stolen whilst SORN'd?

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