So here is a question. Sunday challenge !!! One for @Snake Pliskin I reckon.
As we know the nasty duplicitous car hating Government impose an additional tax on cars costing over £40k. I recall having to pay this just because I had a sunroof.
My question is that you have to pay the extra £325 for 5 years DVLA say ' You only have to pay this rate for 5 years (from the second time the vehicle is taxed)..
So in 2 scenarios.
1. New car registered on 1 March 2021 paying First year charges.
2. Tax expires on 28 Feb 2022 - Pay £150+ £325 surcharge (+ any uplifts) Year 1
3. Ditto 2023 -2024 Year 2
4. Ditto 2024-2025 Year 3
5 Ditto 2025-2026 Year 4
6. Ditto 2026- 2027 Year 5 ends 28 Feb 2027
However can I do the following and save 11/12 x £325?
1. New car registered on 1 March 2021 paying First year charges.
2. At end of March 2021 'cash in initial tax' receiving a refund of 11/12 x £150+ £325 surcharge
3. Retax for a Year 1 April to 31 March 2022 (
£150+ £325 surcharge). Year 1
4. Ditto 2022 -2023 Year 2
5. Ditto 2023 -2024Year 3
6. Ditto 2024 -2025 Year 4
7. Ditto 2025 -2026 Year 5 ends 31 March 2026
It also causes an Issue for used car buyers.
What happens to used car buyers where the Year 5 surcharge ends Mid Tax Year? For example Year 5 ends in Say July 2022 but the car has to be re-taxed for a year from 1 June 2022. Surely the Surcharge doesn't apply for 12 months?
This may be a complex conundrum for many but hopefully someone can enlighten us!!
As we know the nasty duplicitous car hating Government impose an additional tax on cars costing over £40k. I recall having to pay this just because I had a sunroof.
My question is that you have to pay the extra £325 for 5 years DVLA say ' You only have to pay this rate for 5 years (from the second time the vehicle is taxed)..
So in 2 scenarios.
1. New car registered on 1 March 2021 paying First year charges.
2. Tax expires on 28 Feb 2022 - Pay £150+ £325 surcharge (+ any uplifts) Year 1
3. Ditto 2023 -2024 Year 2
4. Ditto 2024-2025 Year 3
5 Ditto 2025-2026 Year 4
6. Ditto 2026- 2027 Year 5 ends 28 Feb 2027
However can I do the following and save 11/12 x £325?
1. New car registered on 1 March 2021 paying First year charges.
2. At end of March 2021 'cash in initial tax' receiving a refund of 11/12 x £150+ £325 surcharge
3. Retax for a Year 1 April to 31 March 2022 (
£150+ £325 surcharge). Year 1
4. Ditto 2022 -2023 Year 2
5. Ditto 2023 -2024Year 3
6. Ditto 2024 -2025 Year 4
7. Ditto 2025 -2026 Year 5 ends 31 March 2026
It also causes an Issue for used car buyers.
What happens to used car buyers where the Year 5 surcharge ends Mid Tax Year? For example Year 5 ends in Say July 2022 but the car has to be re-taxed for a year from 1 June 2022. Surely the Surcharge doesn't apply for 12 months?
This may be a complex conundrum for many but hopefully someone can enlighten us!!