can you avoid paying VED twice for same month?
can you avoid paying VED twice for same month?
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Discussion

iandc

Original Poster:

3,892 posts

236 months

Sunday 13th December 2015
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Given the changes to VED when selling a car, is there any way both the buyer and seller can avoid paying VED for the same month? Reading the rules it looks to me that even if you sold on the last day of the month the buyer could not wait until the 1st of the following month even if the car was not driven after sale on the last day of the month. Or am I over complicated the rules? I want to sell my car to my daughter so I could sell it to her on (say) 31st December and leave it in my garage until 1st January. Would this work?
I know it is not much money in the grand scheme of things but it bugs me that HMG get paid twice for the transfer month.

cptsideways

13,888 posts

282 months

Sunday 13th December 2015
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Sorn it on the last day, tax it on the 1st is the only way. Sorn'ing on the 1st day loses you the month your in.

Roo

11,504 posts

237 months

Sunday 13th December 2015
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When you sell the car tell him you haven't syphoned every last drop of petrol out of the tank to make up for the fact he's got to tax his new car.

LoonR1

26,988 posts

207 months

Sunday 13th December 2015
quotequote all
iandc said:
Given the changes to VED when selling a car, is there any way both the buyer and seller can avoid paying VED for the same month? Reading the rules it looks to me that even if you sold on the last day of the month the buyer could not wait until the 1st of the following month even if the car was not driven after sale on the last day of the month. Or am I over complicated the rules? I want to sell my car to my daughter so I could sell it to her on (say) 31st December and leave it in my garage until 1st January. Would this work?
I know it is not much money in the grand scheme of things but it bugs me that HMG get paid twice for the transfer month.
How much is it for a months road tax on this car that you're selling?nare you selling her your gas guzzler so it'll cost a whole £45 extra, or is more likely to be a smaller car costing no more than a whole £15

You can quite easily sell it on the last day of the month and the new owner tax it on the 1st. The systems are not designed to flag up very short infringements like that and they wouldn't pursue it. People on here are ridiculous at times where they I obsess about being absolutely 100% compliant on minor matters like road tax, whilst not worrying about 30%+ infringements on speed.

Sheepshanks

41,228 posts

149 months

Sunday 13th December 2015
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LoonR1 said:
You can quite easily sell it on the last day of the month and the new owner tax it on the 1st.
The new owner will show as having taken ownership on the last day of the month. Whether DVLA would pursue this, I have no idea, but really wouldn't be surprised if they did.

We had the same situation as the OP - transferring to a family member. As you say, it's small beer, but a bit annoying nonetheless. I think of it as an admin fee - they could do it by the day if they wanted too, or even allow tax to be transferred, but then charge a £50 admin fee.

LoonR1

26,988 posts

207 months

Sunday 13th December 2015
quotequote all
Sheepshanks said:
The new owner will show as having taken ownership on the last day of the month. Whether DVLA would pursue this, I have no idea, but really wouldn't be surprised if they did.

We had the same situation as the OP - transferring to a family member. As you say, it's small beer, but a bit annoying nonetheless. I think of it as an admin fee - they could do it by the day if they wanted too, or even allow tax to be transferred, but then charge a £50 admin fee.
They won't chase it, as he could say he did it at 1 second to midnight and she went online to purchase ar 1 second after.

You all give way too much credit to the efficiency of DVLA alongside displaying worryingly paranoid tendencies.

mygoldfishbowl

4,289 posts

173 months

Monday 14th December 2015
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^^ Most definitely this.. Nothing will happen.

ging84

9,548 posts

176 months

Monday 14th December 2015
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If the dvla were that efficient, they could have a much simpler system which does away with all the fines for no tax altogether and simply sends out bills for much of the £65m odd a year which the government is apparently losing on untaxed vehicles.
They could save thier nazi zombie robot death squads for collecting the fines of people who don't pay, or sorn and still use it on the road

Sheepshanks

41,228 posts

149 months

Monday 14th December 2015
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LoonR1 said:
They won't chase it, as he could say he did it at 1 second to midnight and she went online to purchase ar 1 second after.

You all give way too much credit to the efficiency of DVLA alongside displaying worryingly paranoid tendencies.
What about the missing two seconds though?

LoonR1

26,988 posts

207 months

Monday 14th December 2015
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Sheepshanks said:
What about the missing two seconds though?
Hopefully not serious.

Sheepshanks

41,228 posts

149 months

Monday 14th December 2015
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ging84 said:
If the dvla were that efficient, they could have a much simpler system which does away with all the fines for no tax altogether and simply sends out bills for much of the £65m odd a year which the government is apparently losing on untaxed vehicles.
confused That's what they do now.

ging84

9,548 posts

176 months

Monday 14th December 2015
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Sheepshanks said:
confused That's what they do now.
No they still rely on you to opt in to taxing a vehicle
there can be gaps between taxing and sorning a vehicle, you risk a fine for it not being sorned, but that does not automatically make the owner actually liable for the tax in the gap.
The could skip the need for a fine for not sorned altogether, if they simply made taxing a vehicle something you opt out of with a sorn rather than opt into by taxing it.

Funk

27,743 posts

239 months

Monday 14th December 2015
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Or they could do away with the whole stupid, antiquated and bizarre system and put it on fuel. That way you pay for what you use and can't avoid it as well as removing untold layers of red tape and bureaucracy and cost. It would also catch foreign drivers using our roads too.

TwigtheWonderkid

49,171 posts

180 months

Monday 14th December 2015
quotequote all
Funk said:
Or they could do away with the whole stupid, antiquated and bizarre system and put it on fuel. That way you pay for what you use and can't avoid it as well as removing untold layers of red tape and bureaucracy and cost. It would also catch foreign drivers using our roads too.
It would also mean haulage firms running artics that take 1200 litres of fuel every couple of days would see their costs go thru the roof. It has been estimated it would lead to a ten fold increase for them. This would get passed on to customers and the price of everything in the shops would increase substantially.

hadleighhammer

59 posts

177 months

Monday 14th December 2015
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TwigtheWonderkid said:
It would also mean haulage firms running artics that take 1200 litres of fuel every couple of days would see their costs go thru the roof. It has been estimated it would lead to a ten fold increase for them. This would get passed on to customers and the price of everything in the shops would increase substantially.
So in effect the general public is subsidising the UK haulage industry's fuel usage through VED?

What would be the £ cost to a litre? Not thru the roof and causing mass inflation of the British economy I expect.

Would also mean foreign trucks will pay more fuel tax for using UK roads, so actually the calculated cost could be spread over a greater total litres of vehicle usage.

Funk

27,743 posts

239 months

Monday 14th December 2015
quotequote all
TwigtheWonderkid said:
Funk said:
Or they could do away with the whole stupid, antiquated and bizarre system and put it on fuel. That way you pay for what you use and can't avoid it as well as removing untold layers of red tape and bureaucracy and cost. It would also catch foreign drivers using our roads too.
It would also mean haulage firms running artics that take 1200 litres of fuel every couple of days would see their costs go thru the roof. It has been estimated it would lead to a ten fold increase for them. This would get passed on to customers and the price of everything in the shops would increase substantially.
Let them claim back relief on the tax for a specific category of vehicle (eg. artics). Also how much road tax does a firm pay for an artic annually?

ging84

9,548 posts

176 months

Monday 14th December 2015
quotequote all
hadleighhammer said:
So in effect the general public is subsidising the UK haulage industry's fuel usage through VED?

What would be the £ cost to a litre? Not thru the roof and causing mass inflation of the British economy I expect.

Would also mean foreign trucks will pay more fuel tax for using UK roads, so actually the calculated cost could be spread over a greater total litres of vehicle usage.
No

All road users are currently subsidising other government spending

TwigtheWonderkid

49,171 posts

180 months

Monday 14th December 2015
quotequote all
Funk said:
Let them claim back relief on the tax for a specific category of vehicle (eg. artics). Also how much road tax does a firm pay for an artic annually?
They pay about £1200. Would cost 10x that in fuel surcharge. Tax claim back means cash flow shortage, plus already you're in to an extra admin and that's what you were trying to avoid.

herewego

8,814 posts

243 months

Monday 14th December 2015
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hadleighhammer said:
TwigtheWonderkid said:
It would also mean haulage firms running artics that take 1200 litres of fuel every couple of days would see their costs go thru the roof. It has been estimated it would lead to a ten fold increase for them. This would get passed on to customers and the price of everything in the shops would increase substantially.
So in effect the general public is subsidising the UK haulage industry's fuel usage through VED?

What would be the £ cost to a litre? Not thru the roof and causing mass inflation of the British economy I expect.

Would also mean foreign trucks will pay more fuel tax for using UK roads, so actually the calculated cost could be spread over a greater total litres of vehicle usage.
Foreign trucks fill up wherever fuel is cheapest so if it's more expensive in the UK they simply fill up before entering the country.

hadleighhammer

59 posts

177 months

Monday 14th December 2015
quotequote all
herewego said:
Foreign trucks fill up wherever fuel is cheapest so if it's more expensive in the UK they simply fill up before entering the country.
I've been in motorway petrol stations and seeing foreign trucks using the pumps. Obviously quite rare compared to UK trucks, but it happens.