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Tunbridge

Road Tax

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The wife drives a 2.5 V6 Mondeo Zetec-S on a 2002 plate, it will of course be getting screwed by Darlings clamp down on ‘Gas-Guzzlers’. The car is currently in band F and the road tax is due at the end of this month. I got the reminder in the post which weighed in at £205 but Darling has since put it up to £210 during the budget.

Now when the New system comes in from 2010-2011 it will jump to band L as it is 242g/CO2/km which will be £415 year.

New Tax Rules

I assume that this system will be effective from the April 2009 Budget (although I’ve found nothing to confirm this) so therefore when my renewal comes in next year it will be £415. Yet if I bought a years tax the month before it would only be £210.

The question would be, what should I do? I could just buy 6 months tax now and then my renewal for £415 wouldn’t be till October 2009 or can I buy a year now then, cash it in at the end of March 2009 (1 month early) and buy another 12 months then. Does anybody know if this can be done or how you do it, or any better ideas to stop the government taking money of me (without buying a sensible car).

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[ QUOTE ]

The wife drives a 2.5 V6 Mondeo Zetec-S on a 2002 plate, it will of course be getting screwed by Darlings clamp down on ‘Gas-Guzzlers’. The car is currently in band F and the road tax is due at the end of this month. I got the reminder in the post which weighed in at £205 but Darling has since put it up to £210 during the budget.

Now when the New system comes in from 2010-2011 it will jump to band L as it is 242g/CO2/km which will be £415 year.

New Tax Rules

I assume that this system will be effective from the April 2009 Budget (although I’ve found nothing to confirm this) so therefore when my renewal comes in next year it will be £415. Yet if I bought a years tax the month before it would only be £210.

The question would be, what should I do? I could just buy 6 months tax now and then my renewal for £415 wouldn’t be till October 2009 or can I buy a year now then, cash it in at the end of March 2009 (1 month early) and buy another 12 months then. Does anybody know if this can be done or how you do it, or any better ideas to stop the government taking money of me ( <u>without buying a sensible car</u> ).

[/ QUOTE ]

Mondeo is sensible personified...

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I’ll re-phase then…

(without swapping to a car the government/greenpeace want me to buy)

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If you need to feck around that much, tax it for 12 months now at £210, then on January 31st 09, go to your local DVLA office and cash in the remaining tax (Feb 09 to April 09).

The go back on 1st Feb 09 and tax it for a year at £410 (or whatever it is).

Alternatively, you could sell the car now and take a massive hit on the depreciation of getting another newer car, which has got lower CO2 ratings.

So that's an extra £200 a year in car tax, or £XXXX in depreciation on a replacement car.

I know what I'm doing 169144-ok.gif

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Your question is very sensible and by getting your timing right you will save yourself nearly £200 so why not?

Buy 12m now and buy another 12m in March 2009 at the same rate, effectively losing a month as your new tax disc will be to 28/02/10.

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[ QUOTE ]

If you need to feck around that much, tax it for 12 months now at £210, then on January 31st 09, go to your local DVLA office and cash in the remaining tax (Feb 09 to April 09).

[/ QUOTE ]

I think they've changed the rules so you can't cash it in, to discourage people doing what you're suggesting.

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Yes section A.99 is trying to do that wrt getting cash back but can they stop you taxing a car twice and not trying to get a rebate (as it would be under the one month rule in any case on this one)?

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Are you guys sure it works like this? I'm sure they'll hit us for the max possible.

If you buy it in March are you sure it won't take into account the new tax rate?

i.e You'll get one months tax at the cheap rate and 11 months of the new tax rate.

My gf just got her notice in for a new tax disc last month (before the budget) and she wasn't allowed to apply for a new disc (it said so in the letter) until after the budget. This was to take account of possible variations in the taxation rate.

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That's always the problem with tax discs due at the end of March.

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[ QUOTE ]

My gf just got her notice in for a new tax disc last month (before the budget) and she wasn't allowed to apply for a new disc (it said so in the letter) until after the budget. This was to take account of possible variations in the taxation rate.

[/ QUOTE ]

So in her case I suspect she would have had to apply for it for the end of February (a month early).

If you want to tax a car early, you can't use the renewal form, so you'll need a V10 plus the V5 and your insurance and MOT docs. The V10 includes a line that says if there is a break between the date your tax disc is due for renewal and the date you want to renew from, you can't tax the car more than two days earlier than it's due. This may prevent you renewing early to avoid increased duty.

You're then left with the option of SORN. You'd have to declare SORN, get a refund for the unused portion, wait for the SORN to be acknowledged (not using the car or keeping it on the road), and then re-tax the car afresh. I wouldn't be surprised if there was a "backlog" of SORN acknowledgements that meant that everyone who tried this couldn't get their new tax discs until after the new rates had started...

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I'm in this situation, too.

I'm wondering if it might be worthwhile renewing the tax for six months instead of 12. That way, I have to pay a little more (per month) for the 6 month disc, but I get the next 12 month disc at this year's rate instead of next. So, effectively, I get 6 months extra at the lower rate.

The actual numbers are 6 months at £93.50 plus 12 at £170 - i.e. 18 months for £263.50 - or 12 months at £170 plus 12 months at £260. So for the first 18 months I'll have paid £300, suggesting that a 6 month disc is worthwhile, and I'm not looking at any hassle SORNing the car.

What makes it even more annoying is that the 535d is rated at 182g. The new band starts at 181. So two grams of CO2 will cost me £60 - very fair (not)

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[ QUOTE ]

I'm in this situation, too.

I'm wondering if it might be worthwhile renewing the tax for six months instead of 12. That way, I have to pay a little more (per month) for the 6 month disc, but I get the next 12 month disc at this year's rate instead of next. So, effectively, I get 6 months extra at the lower rate.

[/ QUOTE ]

Yeah, thats my plan too... 169144-ok.gif

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[ QUOTE ]

I'm in this situation, too.

I'm wondering if it might be worthwhile renewing the tax for six months instead of 12. That way, I have to pay a little more (per month) for the 6 month disc, but I get the next 12 month disc at this year's rate instead of next. So, effectively, I get 6 months extra at the lower rate.

The actual numbers are 6 months at £93.50 plus 12 at £170 - i.e. 18 months for £263.50 - or 12 months at £170 plus 12 months at £260. So for the first 18 months I'll have paid £300, suggesting that a 6 month disc is worthwhile, and I'm not looking at any hassle SORNing the car.

What makes it even more annoying is that the 535d is rated at 182g. The new band starts at 181. So two grams of CO2 will cost me £60 - very fair (not)

[/ QUOTE ]

I've got an 182g 535d as well but the older ones were higher and September 07 production onwards are 178g. I wouldn't mind knowing what changed from the facelift in March 07 to the new model year six months later to save 4g.

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[ QUOTE ]

[ QUOTE ]

My gf just got her notice in for a new tax disc last month (before the budget) and she wasn't allowed to apply for a new disc (it said so in the letter) until after the budget. This was to take account of possible variations in the taxation rate.

[/ QUOTE ]

So in her case I suspect she would have had to apply for it for the end of February (a month early).

If you want to tax a car early, you can't use the renewal form, so you'll need a V10 plus the V5 and your insurance and MOT docs. The V10 includes a line that says if there is a break between the date your tax disc is due for renewal and the date you want to renew from, you can't tax the car more than two days earlier than it's due. This may prevent you renewing early to avoid increased duty.

You're then left with the option of SORN. You'd have to declare SORN, get a refund for the unused portion, wait for the SORN to be acknowledged (not using the car or keeping it on the road), and then re-tax the car afresh. I wouldn't be surprised if there was a "backlog" of SORN acknowledgements that meant that everyone who tried this couldn't get their new tax discs until after the new rates had started...

[/ QUOTE ]

Good advice. I will be going 6M then 12M on my S4 - its going from £210 to £440.

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Think I'll just opt for the 6 months now. The SORN option looks like it could be problematic.

I'm all in favour of abolishing road tax all to gether and putting the additional tax on petrol. This would surely be the fairest system as the more miles you do and to more poluting the car then the more tax you pay. Can't see it ever happening as the goverment are too scared to put petrol up any further even it would be a fairer system.

It seems mad that a super car in the top band which is only used for a couple of 1000 miles a year pays £400+ for road tax but a desiel mondeo doing 20k miles a year is getting it a about half the price despite putting a much greater about of CO2 into the enviroment. Same old sketch, the goverment screwing those of us who like to enjoy our cars.

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HMG has the usual justification for the imposition of an unfair but hugely profitable road tax.

"Because we can"

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