Discussion
Hi All,
Question in regards to the new tax regs.
I put my summer car back on the road last week and taxed it for 1 year (paying my direct debit)
Well I got made an offer tonight for the car and have sold it.
How do I go about cancelling it?
Cancel the DD
I have paid a £42 towards the tax (2 months) do I get this back as the car has been taxed for 1 week or do I loose a month.
Not sure how it works so any assistance would be great.
Question in regards to the new tax regs.
I put my summer car back on the road last week and taxed it for 1 year (paying my direct debit)
Well I got made an offer tonight for the car and have sold it.
How do I go about cancelling it?
Cancel the DD
I have paid a £42 towards the tax (2 months) do I get this back as the car has been taxed for 1 week or do I loose a month.
Not sure how it works so any assistance would be great.
You send the V5C off with the new keeper's details on, and keep the DD in place (don't cancel it, DVLA will do this and refund from the start of the month following the sale so 1/5/15 in this case - they may not take the first DD payment until after 1st May but you're liable for one month's VED as described and they will take that in arrears then cancel the DD).
Don't forget to tell the new keeper to tax the car when they buy it...
My source? A thread on PePiPoo where a seller cancelled the DD and the letter chain is posted in full, including DVLA penalty charge letters sent to the former RK for the unpaid VED arising from the cancelled DD (which would have been paid, in arrears, had it not been stopped by the ex-RK).
Don't forget to tell the new keeper to tax the car when they buy it...
My source? A thread on PePiPoo where a seller cancelled the DD and the letter chain is posted in full, including DVLA penalty charge letters sent to the former RK for the unpaid VED arising from the cancelled DD (which would have been paid, in arrears, had it not been stopped by the ex-RK).
grumpy52 said:
Cancel the DD straight after the end of the month .
DVLA cannot be trusted to get it right , it's bad enough that they end up getting paid twice for the month in which the car was sold without them failing to stop taking a direct debit .
Been there got ripped off and no free T shirt .
No. Do NOT do this. As already noted above, it can cause issues.DVLA cannot be trusted to get it right , it's bad enough that they end up getting paid twice for the month in which the car was sold without them failing to stop taking a direct debit .
Been there got ripped off and no free T shirt .
If the DVLA take a payment when they shouldn't, it's their fault and your bank HAS to refund you under the Direct Debit guarantee. But if you cancel the DD then any issues with DVLA as a result will be YOUR fault, and will be a nightmare to sort out.
calibrax said:
No. Do NOT do this. As already noted above, it can cause issues.
If the DVLA take a payment when they shouldn't, it's their fault and your bank HAS to refund you under the Direct Debit guarantee. But if you cancel the DD then any issues with DVLA as a result will be YOUR fault, and will be a nightmare to sort out.
This. Look at it this way, if there's a cock up would you rather deal with your bank or the DVLA? If the DVLA take a payment when they shouldn't, it's their fault and your bank HAS to refund you under the Direct Debit guarantee. But if you cancel the DD then any issues with DVLA as a result will be YOUR fault, and will be a nightmare to sort out.
Interesting.
I am of a mind that DVLA would be fairly likely to cock up so I checked my account to make sure the payment for April had been made. It had, and as I was only using the car till 8th April, on 5th or 6th I cancelled the DDR. On 9th April I SORN'd the car and at this point all seems well.
Car goes back on the road for July so I'll be setting up monthly DDR again at the appropriate time and then cancelling again at the end of July and SORNing.
I am of a mind that DVLA would be fairly likely to cock up so I checked my account to make sure the payment for April had been made. It had, and as I was only using the car till 8th April, on 5th or 6th I cancelled the DDR. On 9th April I SORN'd the car and at this point all seems well.
Car goes back on the road for July so I'll be setting up monthly DDR again at the appropriate time and then cancelling again at the end of July and SORNing.
So in all this, how much is one month's tax? Is it just the amount divided by the # months as you'd assume?
With a vehicle tax reminder in front of me there is:
Paid by card:
6 months £71.50 [£11.916666666666666666666666666(recurring)]
12 months £130.00 [10.8333333333333333333(recurring)]
DD:
6 months in advance £68.25 [£11.375]
12 months in advance £130.00 [£10.8333333333333333333(recurring)]
12 months by monthly payments [136.50 £11.375]
And on the back of the form it explains that the 6 months DD and the monthly in advance DD attract 5% surcharge, but fails to mention the 10% surcharge for 6 months paid by card.
Strange system.
Bert
With a vehicle tax reminder in front of me there is:
Paid by card:
6 months £71.50 [£11.916666666666666666666666666(recurring)]
12 months £130.00 [10.8333333333333333333(recurring)]
DD:
6 months in advance £68.25 [£11.375]
12 months in advance £130.00 [£10.8333333333333333333(recurring)]
12 months by monthly payments [136.50 £11.375]
And on the back of the form it explains that the 6 months DD and the monthly in advance DD attract 5% surcharge, but fails to mention the 10% surcharge for 6 months paid by card.
Strange system.
Bert
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