Car tax weirdness

[Cheddars]

Appologies if this is in the wrong section

Long story short, I took my Honda off the road for a couple of days to get my Z3 MOT'd. I pay my tax via direct debit / monthIy. I declared it sorn last Friday 30th June at around 12pm lunch time. However they have taken a payment out for this month (on Tuesday) and are due to take another on the 17th as I have re-taxed the Honda.

The price for the new tax is £1 higher, so I know it's from my previous direct debit.

So basically I have been charged for this month when it was declared off the road from last month. It is only £20, but can't see this as correct or even legal?

 

[Mac Romans]

You can only tax vehicles for complete months now. For instance if you tax a car on the 20th of a month, you'll pay from the first if that saw month. It's crap.

Even worse, if you take a car off the road on 2nd of may, you'll pay for all of may. If you retax it on 30th may, you'll pay for all of may again!

Sometimes it's cheaper to leave a car taxed.

 

[Cheddars]

That's mental!

 

[Uncle_Clanger]

Appologies if this is in the wrong section

Long story short, I took my Honda off the road for a couple of days to get my Z3 MOT'd. I pay my tax via direct debit / monthIy. I declared it sorn last Friday 30th June at around 12pm lunch time. However they have taken a payment out for this month (on Tuesday) and are due to take another on the 17th as I have re-taxed the Honda.

The price for the new tax is £1 higher, so I know it's from my previous direct debit.

So basically I have been charged for this month when it was declared off the road from last month. It is only £20, but can't see this as correct or even legal?

Yes, I've read about this on other threads. I would imagine the answer is to tax on the first day of the month and then sorn it on the last day of the month and immediately cancel the direct debit. They send you a payment itinerary when you pay monthly because you are actually taking out a credit agreement to pay over 12 months. The way in which they charge you is intentionally complicated in my opinion.

 

[Brian H]

Appologies if this is in the wrong section

Long story short, I took my Honda off the road for a couple of days to get my Z3 MOT'd. I pay my tax via direct debit / monthIy. I declared it sorn last Friday 30th June at around 12pm lunch time. However they have taken a payment out for this month (on Tuesday) and are due to take another on the 17th as I have re-taxed the Honda.

The price for the new tax is £1 higher, so I know it's from my previous direct debit.

So basically I have been charged for this month when it was declared off the road from last month. It is only £20, but can't see this as correct or even legal?

Direct debits are set up well on advance of the date of the payment, as you cancelled on the last day of the month they did not know of your intentions and did not have time to cancel the DD from their end. You should be able to get this money back but I suspect you will be passed from pillar to post within the DVLA. A little confused as why you would un-tax a car for 17 days but as you said you have cut a long story short.

 

[Uncle_Clanger]

The emailed receipt you get from the DVLA after set up a direct debit and pay monthly states you have paid the full 12 months which is confusing. I think this is because the Dvla has been paid upfront by a third party and you then go on to pay your agreed monthly payments to that third party and not the Dvla. (I think, not 100% sure)

@Brian H is right about the time frames of direct debits, I would always say when in doubt go to your bank and cancel a direct debit your end.

 

[Cheddars]

Direct debits are set up well on advance of the date of the payment, as you cancelled on the last day of the month they did not know of your intentions and did not have time to cancel the DD from their end. You should be able to get this money back but I suspect you will be passed from pillar to post within the DVLA. A little confused as why you would un-tax a car for 17 days but as you said you have cut a long story short.

The car was untaxed for a total of 3 days, not 17. The new payment is due to be taken out on the 17th.

The reason for it was because I thought the z3 would pass its mot or at least make it to the test station without breaking down which it did break down and I thought I would be driving the z3 and sorting the insurance later properly for both cars as my renewal is almost here.

 

[Devon Z]

I refuse to do direct debit with government agencies, I pay my council tax online when I want to and I tax my cars upfront (fortunately hers is 0 tax)
This sort of thing will happen unless your really on the ball

 

[g8jka]

I sorned my old one on the last day of the month and they still took the direct debit out on the 1st. They refunded me a couple of weeks later without asking or any hassle so you will get it back.

They will have set a new on up as you have retaxed it which is why it's now set up on the 17th. Don't know why it increased in price though!

 

[Redline]

If you sell a car on to someone who uses it immediately it means they get tax for it twice for that month. Not very ethical.

 

[Stevo7682]

When the new road tax system was introduced the dvla said this is the way it would be done .
The reasoning behind it was that it would generate revenue which would generally only be a small penalty to the vehicle buyer/seller . Than then allowed them to initiate the new system without hiking up the cost of tax they also left the levvy for direct debit payment at 5%.

 

[Uncle_Clanger]

So they said they are charging the same car twice to generate revenue in order to save us money in the long run? Mmmm? and our highways look like the road to Kandahar!

Have to look on the bright side... 7 more years and tax exemption? As long as they don't change the goal posts or ban our engines because use everybody is electric...Meldrew moment over.

Actually its only for cars registered before 1973 so we shall always be taxed I suppose.

 

[mrscalex]

You can only tax vehicles for complete months now. For instance if you tax a car on the 20th of a month, you'll pay from the first if that saw month. It's crap.

Even worse, if you take a car off the road on 2nd of may, you'll pay for all of may. If you retax it on 30th may, you'll pay for all of may again!

Sometimes it's cheaper to leave a car taxed.

Has it not been like this for many years - forever for as far back as I remember, ie 30+ years? I think the significant recent change was not being able to pass on the tax to a new owner and DVLA picking up double revenue for the month of sale.

Of course if you're prepared to SORN for the balance of the sale month you have the privilege of denying DVLA the double revenue. But that would be cutting off your nose to spite your face as you need to tax it in your name before driving it home. Either that or get it recovered.

When I buy a project I am getting them recovered now. For instance it cost me £95 Bristol to Swindon. I would have paid £25 to tax the car for 1 day, £40 to insure it for 1 day and we'll say £10 in fuel to drive it home. So that's £75 v £95. Not worth the hassle.

There were also rate changes this April but not clear how they affect Z3s. It wouldn't affect all consistently anyway as they moved to a CO2 basis from March 2001 and plenty of Z3s were first registered after this date.

 

[t-tony]

I taxed Shirl's oil burner on Sunday last (£160) my Z4 demand came today, £305. Expensive month.

Tony.

 

[mwpe]

So they said they are charging the same car twice to generate revenue in order to save us money in the long run? Mmmm? and our highways look like the road to Kandahar!

I am sure the road to Kandahar is better than the ones around here, I see more potholes on normal day driving around locally than I saw in 1,500 miles on the Euro trip.

 

[t-tony]

They're absolutely shocking in Lincs. too Mike.

Tony.

 

[abh29]

When the new road tax system was introduced the dvla said this is the way it would be done .
The reasoning behind it was that it would generate revenue which would generally only be a small penalty to the vehicle buyer/seller . Than then allowed them to initiate the new system without hiking up the cost of tax they also left the levvy for direct debit payment at 5%.

Keep an account running with Santander and get 2% back on the DD s. To quote the biggest profiteers ever 'Every little helps ' I manage to put all my DDs through Santander

 

[FRANKIE]

Can't you guys in the UK take a joke? Things are so much easier over here. You pay a registration fee yearly for your car in New Jersey. You must have insurance to get your car registered. If you don't want to drive your car for several months, you must turn in your tags and tell the insurance company to stop your insurance. If you paid insurance for the year, they pay you back for the time not used. The state doesn't pay you back for the time you're no longer registered. I worked on a cruise ship for over 6 months. I dropped my insurance since I wasn't driving the car due to the fact I WAS OUT OF THE COUNTRY. When I came back, and went to use the car again and pay for insurance, I was charged a heftly surcharge for being out of insurance.during the year. I explained that I didn't have insurance because I WAS OUT OF THE COUNTRY DURING THAT TIME AND COULDN'T POSSIBLE DRIVE THE CAR. AND......they said I'd have to wait a few weeks as they weren't taking on any new customers. I pointed out that the only car insurance I'd ever had was theirs and had been insured by them for over 25 years. They were calling me NEW?.. Too bad Frankie, just paint 2 circles on the hood (bonnet) of your car and place your hands on them when you're bending over your car at the DMV.......It'll be over quickly.......................Frankie

 

[billysally208]

Read with interest and experienced this myself where the RFL has been paid twice for a month by the old and new keepers - took it up with my local MP who was sympathetic but basically said that is the law and referred it to DVLA who sent me a nice leaflet telling me how the car tax system works - don't waste your time complaining, you'll get nowhere.
I am very careful when taxing and sorning cars now - and will even keep them off the road until the end of the month before doing so.

 

[Tfp]

I like the new system.

I have a little van that I use occasionally, I can easily sorn it on the last day of the month, and then tax it instantly on my computer at home when I next need to use it.

Yes they take the next months direct debit, but it gets refunded soon after, no need to call DVLA.

Yes it's annoying that DVLA get two payments for the month when a car is sold, but hey, money has to come from somewhere to pay for all the politicians pension pots.... (Joke by the way)

The old paper disc was rubbish, con people used to just photo copy it and send the original back for a refund, plenty of people got away with that for years, until ANPR came along.