Road Tax - Mugged twice by the taxman? - Warning

When I bought my car in 2016, it was taxed on the 31st, so ended up paying for a whole month of tax just for one day.

When I sold my car, it was sold on the 5th, but apparently I got no refund for the month. So the Government has mugged me twice.

I have paid for 2 months road tax, but only go 6 days worth of road tax.

Road Tax - Mugged twice by the taxman? - Andrew-T

I haven't found a way to avoid this. DVLA considers that the sale or transfer of a car happens instantaneously, so both parties pay for the whole transfer month. I'm not sure what happens when a car is sold to a trader ?

Road Tax - Mugged twice by the taxman? - RT

I haven't found a way to avoid this. DVLA considers that the sale or transfer of a car happens instantaneously, so both parties pay for the whole transfer month. I'm not sure what happens when a car is sold to a trader ?

The way to avoid this is to take the car off the road, ie SORN it online, on the last day of the month and then sell it on the first of the next month - it must of course be genuinely off the road.

Road Tax - Mugged twice by the taxman? - Xileno

What happens if the buyer wants to test drive it?

Road Tax - Mugged twice by the taxman? - gordonbennet

Always been the case that you lose part months, all you can do is sell at the end of a month and buy at the start to minimise losses.

Unless you are in the top VED bands the amounts concerned are hardly worth worrying about when compared to depreciation and other motoring costs, if money's tight get a car in the lowest of bands,

Road Tax - Mugged twice by the taxman? - Bromptonaut

How much is the Annual amount?

My Fabia is about £20 and even the Berlingo's not extortionate.

Edited by Bromptonaut on 15/04/2024 at 18:45

Road Tax - Mugged twice by the taxman? - Brit_in_Germany

Then sell on the last day of the month and buy on the first day.

Road Tax - Mugged twice by the taxman? - skidpan

If any new car we buy is registered mid month we ensure that its taxed plus 1 or 2 weeks. Take the Yaris, registered mid March and tax will be due 01 April next year.

Fabia we PX'd was registered April 29th and when we sold it mid March we got a month refund because it was taxed 12 months plus a week.

But compared with depreciation, insurance, fuel and other running costs a couple of weeks VED is sod all in the big picture, about £7.

Edited by skidpan on 15/04/2024 at 20:24

Road Tax - Mugged twice by the taxman? - Bilboman

I cannot for the life of me understand why VEHICLE tax (to give it its proper name, since "Road tax" was abolished in 1937, ahem) cannot follow the car, rather than the driver. In Spain, for example, it is levied by the local council (now there's an idea, hey?) and paid in full once a year by the named driver as of 1st January of that year.
Many years ago I sold a car to a workmate and with it the remaining 4 months of the year's local car tax AND insurance, since in Spain as in "most" countries, the insurance is charged to the vehicle.

Road Tax - Mugged twice by the taxman? - RT

I cannot for the life of me understand why VEHICLE tax (to give it its proper name, since "Road tax" was abolished in 1937, ahem) cannot follow the car, rather than the driver. In Spain, for example, it is levied by the local council (now there's an idea, hey?) and paid in full once a year by the named driver as of 1st January of that year.
Many years ago I sold a car to a workmate and with it the remaining 4 months of the year's local car tax AND insurance, since in Spain as in "most" countries, the insurance is charged to the vehicle.

That used to be the case in the UK with Vehicle Excise Duty (VED) - it was transferred with the car.

Road Tax - Mugged twice by the taxman? - Bromptonaut

That used to be the case in the UK with Vehicle Excise Duty (VED) - it was transferred with the car.

It was if you bought privately but dealers would cash the disc in - test drive on trade plates.

Road Tax - Mugged twice by the taxman? - bathtub tom

Simple. Buy a car, take it home and don't use it until the beginning of next month (SORN it if you want). Tax it and use it (assuming valid insurance and MOT).

DVLA won't know if it was transported on the road or trailer, unless you're VERY unfortunate to be picked up on CCTV. I suspect the authorities couldn't be bothered, as long as the VED is continuous.

Road Tax - Mugged twice by the taxman? - Will deBeast

The reason that tax can only be for whole months is to do with the IT systems. There is a modern front end, but behind that is a very old mainframe database system.

The mainframe system was designed in the days when the tax went with the vehicle, so only needed to do full months.

But there was a problem with people buying cars with some tax remaining, but not registering the car - so DVLA and the police were losing track of some cars. The solution was nullifying the tax on handover.

It was obvious that this would lead to some double taxation, but that was regarded as least worst option.

Road Tax - Mugged twice by the taxman? - Andrew-T

The reason that tax can only be for whole months is to do with the IT systems. There is a modern front end, but behind that is a very old mainframe database system.

No doubt. But even in the days of paper tax-discs, VED expired at the end of a calendar month. The only difference (as said above) is that any unexpired tax could be sold on with the car - no longer possible.

Road Tax - Mugged twice by the taxman? - Warning

My tax renewal is £360. So about £30 a month.

So two month's tax is £60.

Road Tax - Mugged twice by the taxman? - Big John

I helped a friend buy a car recently - we slightly delayed pickup day to be 1st April. Good and bad with that -

  • Good) Didn't loose a months worth of tax if we'd picked up end of March
  • Bad) Prices went up 1st April - only by £10 / year though.

PS Was horrified at what you got for £3.5k these days - poor!

Road Tax - Mugged twice by the taxman? - Terry W

My tax renewal is £360. So about £30 a month.

So two month's tax is £60.

Thew only extra amount is £30 - you would have to pay a month anyway.

Don't know how much you paid for the new motor, but a "tax" of £30 on a vehicle change is not worth getting over-excited about.

Road Tax - Mugged twice by the taxman? - David Clarks

Agreed, in the grand scheme of things, the additional cost seems minimal. Especially considering a year of road tax is spread out over several months anyway. focusing on the overall value you got from the new vehicle is likely a better use of energy!

Edited by David Clarks on 20/04/2024 at 04:41