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New car tax rules - buying a car


daveturnbull

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So I know that with the new car tax rules any remaining tax cannot be transferred to the new owner of a vehicle. The finer points however seem a little fuzzy.

The situation: This weekend I am going to look at a new car, and potentially buy it. It's a 3 hour drive away so I'd like to bring it home the same day rather than travelling back again. I have an insurance quote lined up ready to go, so that part is sorted. But what about the tax?

Do I need to:

  1. Hunt around for an open post office and buy it immediately before I leave for my drive home.
  2. Buy it as soon as I get home and have internet access again.
  3. Buy it the next day because DVLA computers only update overnight.

Discuss.

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I've seen info. on this on the internet but not really taken it in as not applicable to me, but I think you can do the business over the 'phone, probably by using the keypad, in the same way as those without the internet can renew their car's VED when it's due.

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I had this exact problem 2 days after the law change we got there bought the car and insured it then tried to do the tax online on the phone failed then we tried the post office up the road to be met with "we don't do car tax". In the end we drove it home figuring the previous owner was unable to surrender the tax till he sends the v5 off (atleast a day) so it won't flag on ANPR and if a copper pulled us we have the counter part of the v5 to prove we had just bought it. We did tax it as soon as we got home and never had any come back.

Mike

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I bought a used motorcycle shortly after the new system came into place. I brought it home in my van and then insured it (Hastings Direct IIRC) and immediately taxed it online - within about two minutes. I have a suspicion that the VED system no longer checks the MID, perhaps to do with continuous insurance?

Chris

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I'm in the process of selling a car (diesel 08 golf if anyone is looking lol) so looked it up. The tax is automatically refunded once the V5 is received from the seller so wouldn't trigger an ANPR but you should tax it before driving it away by phoning or going online. I'm sure any decent seller would help you with this if you didn't have a phone with you.

I don't know how the database system works as we have a fleet policy at work which states that any person with permission of the company is insured to drive any car owned or hired by the company. So we can buy a car and drive it away insured, we only have to inform the insurance company of the vehicles we own once a year, so there may be periods of time where the numberplate of a vehicle is not on our policy but we never get pulled for no insurance.

The local town has anpr cameras on the way in, I know people who have had letters saying your drove here at this time with no tax, please tax your car, but there doesn't seem to be a follow up to that letter.

For ease i'd take the trailer :huh:

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Love this new system! Tax was attached to the car so there was no transfer but now it is attached to the owner so the DVLA can guarantee getting double tax for the transfer month as only complete months can be returned! It won't matter if you wait for the end of the month as you can't cancel until it is sold so there will always be a dual period! The only way would be to SORN the vehicle for the last month of ownership?

Marc

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For ease i'd take the trailer :huh:

Given that I missed out on the 'grandfather rights' for B+E by about a month, and haven't done a separate test, that's sadly not an option. Plus I still haven't got round to fixing the EAS on my tow car yet.

So the general consensus seems to be that I should try and tax it one way or another before leaving, but it's unlikely to ever get flagged by ANPR until after the DVLA get the V5 in the post and then update their computer systems, and even then I'll only get a reminder, not a fine.

Is there still a 'grace period' like you used to get?

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As far as I'm aware there is no grace period, just the discretion of the officer I guess. I believe it's a black and white must be taxed MOTd and insured before you take it away... unless it has no MOT and your taking it to an appointment at the garage near your house?

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There was a grace period on failure to display a tax disc which I think was introduced when the online system was first set up to allow for processing/postage, started as 5 days and was then extended to 14 days. However I believe it was only for the displaying that you had a grace period for not the actual paying for, obviously the displaying part is now irrelevant so as such no grace period.

http://www.legislation.gov.uk/ukpga/2013/29/section/188#section-188-2

http://www.legislation.gov.uk/ukpga/1994/22/section/33

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The cynics amongst us will say it is so they can get extra tax money. It will not stop the organised tax avoiders; cloned vehicles and the like.

If you pay cash for a vehicle and do not tell the seller your address the ANPR system will not be able to find you anyway.

As with other systems such as the new Dartford Crossing toll system it will catch the careless and the stupid but do nothing to catch those who know what they are doing when they cheat.

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It's to cut the cost of having to print and post tax discs by using technology that is widely used.

To make it possible for people to pay by monthly direct debit without having to issue a tax disk every month. Although you have to pay a 5% charge.

To discourage people who buy a car with a years tax and mot then run it without putting it in their name. Some say in places like Bradford and Sheffield this is as high as 1 in 3.

To discourage people from buying a car with tax and risking it home.

Unfortunately it seems the system is capable of taking payment 24/7 but can only start and stop tax by full months. So every time a car changes hands they unfortunately gain a months tax. However I'm sure the next systems upgrade will fix this...

It's common for no good nicks that drive around in transits to clone a plate off a similar age car. Now they don't even need a fake tax disk for the window which is great as I'm sure this requirement was not only against their ancient way of life but also broke their European human rights.

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The best answer selling is to do the sale at months end . If a private sale and new owner does not use on road , he can do sorn when he takes delivery , and then tax for following month . If you buy from a dealer no option , it has to be taxed , before it leaves his premises otherwise they can be fined £2k IIRC , so they make sure its done. You get the tax refunded , and notification you are no longer the reg keeper, about 2 weeks or so after , they send them in separate envelopes ! that saves money doesnt it ?

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I sold an old 90 on the last couple of days of October with 9 months tax on it. I have had the letter back saying I am no longer the owner but have never received a refund in the post - my partner paid for the tax online - would It've been refunded straight into her account by DVLA?

I will ask her tonight - I have only just remembered we haven't had the refund when I read this thread

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I sold an old 90 on the last couple of days of October with 9 months tax on it. I have had the letter back saying I am no longer the owner but have never received a refund in the post - my partner paid for the tax online - would It've been refunded straight into her account by DVLA?

I will ask her tonight - I have only just remembered we haven't had the refund when I read this thread

Same here - sold a car about a month ago, sent off the V5 on day of sale, got the slip back confirming I'm no longer the registered keeper a couple of weeks ago, still no tax refund though...

Just seems a really ar$e-backwards way of screwing-up a system that, particularly since the arrival of online renewals, was working pretty well.

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Isn't tax refund seperate ? Don't you send the disc back ? Either that or the government is epically pocketing car tax on the change over.

no its atomic the old disc is void as soon as you sell, you then get the balance of the months(only complete ones) that are left .

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Just be warned; a friend's son bought a car, and sent off the V5C to get it changed, not realising the tax disc was no longer valid. 16 days later without any warning it was clamped in the middle of the night. He had to pay £100 plus the tax to get it released, and it wasn't released till 11am on the day after he paid.He has also been fined a further £49 for not taxing it on top of all that which seems unfair after the £100 release charge. I have also heard of cars getting lifted in the middle of the night. It looks like the cowboy parking clampers have been redeployed by the DVLA. Allegedly they can clamp if they can get access, eg if it was parked on your drive without locked gates.

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Surely if it is parked on your drive there is no need for it to be taxed!!!

I was going to say that then remembered the sorn thing.

On a side note I bought a car that isn't likely to see the road any time soon. Only to discover you can't sorn it until you have the v5 back on top of that you can't sorn it online or in a post office it can only be done via a form you have to download and post to them or you can phone up and they will post you the form for you to send back to them. Now there's progress for you.

Mike

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I sold an old 90 on the last couple of days of October with 9 months tax on it. I have had the letter back saying I am no longer the owner but have never received a refund in the post - my partner paid for the tax online - would It've been refunded straight into her account by DVLA?

I will ask her tonight - I have only just remembered we haven't had the refund when I read this thread

I *think* that the automatic refund only applies if you have taxed it since the new tax disk-less system has come into force. If there's a paper tax disk you still have to send it back to get the refund...

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