VED Expensive Supplement - Backdated Inflationary Increases?
Discussion
I have a car on a personal lease (a Peugeot 3008 PHEV) with ALD Automotive. I recently received an invoice from them recovering an increase in VED - fine, it's written into the contract.
However, I am in disagreement with the amount - £420+VAT - and how they've determined that number.
I called to ask why such an enormous increase and they've stated that the car P11d value was just below £40k at initiation of the lease, so the car was originally exempt from the expensive car supplement. I disagree with this first of all as I believe the P11d value to be around £44k based on Peugeot price lists from early 2024.
But the main point which I am doubting is that they're saying the DVLA retrospectively add inflation to the car's value when calculating subsequent year's tax. Has anyone heard of this before?
For example, car is £39,500 new in year 1.
By year 2, add 3% inflation and the 'list price' is now £40,685, so they now charge the expensive car supplement.
I think this is bobbins, as all of the evidence I can find tells me it's the list price when new.
Any thoughts or inputs would be welcomed, thanks!
However, I am in disagreement with the amount - £420+VAT - and how they've determined that number.
I called to ask why such an enormous increase and they've stated that the car P11d value was just below £40k at initiation of the lease, so the car was originally exempt from the expensive car supplement. I disagree with this first of all as I believe the P11d value to be around £44k based on Peugeot price lists from early 2024.
But the main point which I am doubting is that they're saying the DVLA retrospectively add inflation to the car's value when calculating subsequent year's tax. Has anyone heard of this before?
For example, car is £39,500 new in year 1.
By year 2, add 3% inflation and the 'list price' is now £40,685, so they now charge the expensive car supplement.
I think this is bobbins, as all of the evidence I can find tells me it's the list price when new.
Any thoughts or inputs would be welcomed, thanks!
ks. Ask to see the VED demand. Have they stated that the car cost less than £40K when new in the contract with you? Index linking would be a nightmare to administer and lead to interesting outcomes like a £36K car being under the limit for four years and then suddenly being hit in year five before going back down again the next year.
Thanks both - seems to confirm my suspicions.
I couldn't see any mention of list price in any contractual documents, but I found a Peugeot price list from late 2023 which notes a P11d value of £44,735. I also found the official wording on Govt document which states "list price at first registration".
I've collated these into an email and have formally disputed the costs with ALD - let's see what happens...
I couldn't see any mention of list price in any contractual documents, but I found a Peugeot price list from late 2023 which notes a P11d value of £44,735. I also found the official wording on Govt document which states "list price at first registration".
I've collated these into an email and have formally disputed the costs with ALD - let's see what happens...
TA14 said:
Ask to see the VED demand.
Unfortunately, I don't think would work in my favour, as the VED demand will be inclusive of the supplement. I'm not disputing that the car is eligible for the charge, but I disagree that I should be on the hook for it.To come back to this.
I raised a formal complaint with ALD Automotive who claim they've done nothing wrong, and that the P11d value must have changed between the time of their quote and the car's registration with DVLA. They're blaming it on the dealership or manufacturer, who should have let me know that the price might increase with optional extras such as metallic paint.
This is despite me having a screengrab from broker's advert at the time which notes metallic paint is included and a P11d value of £40,425 (annoyingly this differs from the Peugeot brochure P11d value of £44,735).
I called to ALD to try and ask some questions to be told "it's closed, you can't reopen it now and you can't raise a new complaint on the same issue".
So they've closed the complaint say the only way I can appeal is by going to the Ombudsman, which will have to be the next step.
I raised a formal complaint with ALD Automotive who claim they've done nothing wrong, and that the P11d value must have changed between the time of their quote and the car's registration with DVLA. They're blaming it on the dealership or manufacturer, who should have let me know that the price might increase with optional extras such as metallic paint.
This is despite me having a screengrab from broker's advert at the time which notes metallic paint is included and a P11d value of £40,425 (annoyingly this differs from the Peugeot brochure P11d value of £44,735).
I called to ALD to try and ask some questions to be told "it's closed, you can't reopen it now and you can't raise a new complaint on the same issue".
So they've closed the complaint say the only way I can appeal is by going to the Ombudsman, which will have to be the next step.
MustangGT said:
Ussrcossack said:
Is there VAT on VED.
I wouldn't think so.
Open the complaint on that matter
No, VED is not subject to VATI wouldn't think so.
Open the complaint on that matter
"VAT is charged because we are the registered keeper of the vehicle. Only the registered keeper can apply for the Vehicle Excise Duty, we are providing this as a service to you, which means VAT applies."
It has left me very sour about it all. I don't understand why this wasn't raised when the lease first commenced as it seems to me they should have known about it a year ago.
Plus the fact that the original customer services advisor blatantly lied, yet they have taken no notice of that aspect of the complaint.
Edited by FBR2020 on Thursday 15th May 18:08
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