SORN on Newly Registered Car
Discussion
Had a bit of a look online but cant find anything conclusive.
Just recently bought a new car and its unlikely that ill get much chance to use it in Jan/Feb so was considering SORN'ing it.
Ive done it a few times before but wondered what implications there would be with it being a new car, with it being the first year of registration ive paid the higher tax amount (£885).
If i were to SORN Would i get the pro rata refund on the £885 or the normal £500 per year cost?
If i were then to re-taxed a few months later - would i have to repay the £885 or would it be £500?
In my mind it would make most sense that the extra £335 was treated as a one time premium and so refund/re-tax would be based on the normal £500 price but this is the DVLA!
Just recently bought a new car and its unlikely that ill get much chance to use it in Jan/Feb so was considering SORN'ing it.
Ive done it a few times before but wondered what implications there would be with it being a new car, with it being the first year of registration ive paid the higher tax amount (£885).
If i were to SORN Would i get the pro rata refund on the £885 or the normal £500 per year cost?
If i were then to re-taxed a few months later - would i have to repay the £885 or would it be £500?
In my mind it would make most sense that the extra £335 was treated as a one time premium and so refund/re-tax would be based on the normal £500 price but this is the DVLA!
The new-car-premium part of that first tax price isn't refundable, and is only charged on the first VED purchase. Same whether it's SORNed or the keeper changes.
So if it's band L, then the first VED is £885, subsequent is £500. If you SORN it after a month, you get 11 months of £500 back, or £458.33. If you then re-tax it a month later, it costs you £500.
So, basically, it makes no difference how you work it - you pay the £385 as a registration fee, effectively, and the SORN saving works out to £41.67/month if you pay for your VED annually.
So if it's band L, then the first VED is £885, subsequent is £500. If you SORN it after a month, you get 11 months of £500 back, or £458.33. If you then re-tax it a month later, it costs you £500.
So, basically, it makes no difference how you work it - you pay the £385 as a registration fee, effectively, and the SORN saving works out to £41.67/month if you pay for your VED annually.
TooMany2cvs said:
The new-car-premium part of that first tax price isn't refundable, and is only charged on the first VED purchase. Same whether it's SORNed or the keeper changes.
So if it's band L, then the first VED is £885, subsequent is £500. If you SORN it after a month, you get 11 months of £500 back, or £458.33. If you then re-tax it a month later, it costs you £500.
So, basically, it makes no difference how you work it - you pay the £385 as a registration fee, effectively, and the SORN saving works out to £41.67/month if you pay for your VED annually.
^^^THIS.So if it's band L, then the first VED is £885, subsequent is £500. If you SORN it after a month, you get 11 months of £500 back, or £458.33. If you then re-tax it a month later, it costs you £500.
So, basically, it makes no difference how you work it - you pay the £385 as a registration fee, effectively, and the SORN saving works out to £41.67/month if you pay for your VED annually.
When the new VED comes in for April 17 vehicles onwards, worst case scenario would be buying a high CO2 car with a list price of under £40K. (Mustang V8?) Initial VED will cost you £2000, and if you sorn or sell during the first year, you'll get pro rata back on an annual rate of £140!!!
TooMany2cvs said:
The new-car-premium part of that first tax price isn't refundable, and is only charged on the first VED purchase. Same whether it's SORNed or the keeper changes.
So if it's band L, then the first VED is £885, subsequent is £500. If you SORN it after a month, you get 11 months of £500 back, or £458.33. If you then re-tax it a month later, it costs you £500.
So, basically, it makes no difference how you work it - you pay the £385 as a registration fee, effectively, and the SORN saving works out to £41.67/month if you pay for your VED annually.
Perfect thankyou, in my mind that was how it should work but couldn't find any information confirming it!So if it's band L, then the first VED is £885, subsequent is £500. If you SORN it after a month, you get 11 months of £500 back, or £458.33. If you then re-tax it a month later, it costs you £500.
So, basically, it makes no difference how you work it - you pay the £385 as a registration fee, effectively, and the SORN saving works out to £41.67/month if you pay for your VED annually.
Cheers
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