VED pricing bracket query

[SR7492]

Peeps,

Need some help/advice as I'm a little confused. I've bought a new 2018 plate Audi; was expecting the VED to be £140 as the cars base price is less than £40k. However the VED is £450 because Audi put the OTR price over £40k - little be miffed to be honest.

I've checked the DVLA website and it seems to suggest the value is on the base i.e. brochure price and doesn't have to include the total price with extra; thinked I've been robbed here judging by that!

Any help or anyone been in a similiar situation?

Thanks!

[Mandat]

SR7492 said:

Peeps,

Need some help/advice as I'm a little confused. I've bought a new 2018 plate Audi; was expecting the VED to be £140 as the cars base price is less than £40k. However the VED is £450 because Audi put the OTR price over £40k - little be miffed to be honest.

I've checked the DVLA website and it seems to suggest the value is on the base i.e. brochure price and doesn't have to include the total price with extra; thinked I've been robbed here judging by that!

Any help or anyone been in a similiar situation?

Thanks!

the £310 surcharge is applied to vehicles with a list price of over £40,000. The actual purchase price is not relevant.

[Cylon2007]

As far as I am aware the VED is set based on the RRP of the car not actually the price you pay. So if the RRP is over £40k that is what the VED will be set on.

[SR7492]

Thanks guys!

Having checked the base price, this is £39,025 without the extras it has on it.

Do I raise this as a issue with DVLA?

[Begall]

SR7492 said:

Thanks guys!

Having checked the base price, this is £39,025 without the extras it has on it.

Do I raise this as a issue with DVLA?

The surchage is based on the cost of any extra items on it. So by all means raise it with the DVLA, but you're not going to get very far.

[lewisspencer]

Looked into this recently when ordering a new car. It’s base cost plus extras. You can remove the first year VED as this is usually bundled in to the list price but if you’re still over 40k it’s the higher tax band. Sounds like you are likely in the higher band yourself.

[donkmeister]

SR7492 said:

I've checked the DVLA website and it seems to suggest the value is on the base i.e. brochure price and doesn't have to include the total price with extra; thinked I've been robbed here judging by that!

The key word is "list" price, not "base" price. Ie add up base price and options, but don't add OTR-specific costs. Yes it's a swizz when a £40k car often isn't anything special anymore (remember when a 3.2l M3 was under £40k new?) but unfortunately that's where they put the breakpoint.

[Cupramax]

You have George Osborne to thank for the £40k car tax stupidity, meanwhile he sods off and gets paid a fortune elsewhere while admiring the disaster area him and Cameron ran away from.

[Scootersp]

Cupramax said:

You have George Osborne to thank for the £40k car tax stupidity, meanwhile he sods off and gets paid a fortune elsewhere while admiring the disaster area him and Cameron ran away from.

Might not be so bad in the long run, once past year 7 it's £140 per annum whatever the vehicle, which is nicer than the +£500 for some current nice old wafter/gas guzzler/sporty number.

[SR7492]

From the DVLA:

'You have to pay an extra £310 a year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000.'

To me, that is the base price of any car advertised (website/brochure) excluding any optional extras/discounts that are applied at the end,

I'm going to query this with DVLA as mine was clearly advertised as £39,025 as list/base!

What annoys me even further, I was looking at 16/66 plate cars (same car/engine/facelift model) and the tax for them was £30 for the year - this is what I was expecting to pay on the 2018 car (Avant are £130 for some reason)

So not only has it gone from £30 to £140; its hiked by another £310 until 2023 - all for a 2ltr effing diesel which is supposed to be effiecient (its the Ultra model)

As you can imagine, not too pleased and if I had know these rates beforehand, wouldn't have botherted with a newer car and bought a 2/3 yr old instead!

[Nickp82]

OP, unfortunately you are wrong. The list price of a car is the basic price including factory options but excluding Road Tax etc, this is they way it has worked since the rules changed in 2017.

[Mandat]

What is the list price of your car, including the cost of all of the options that are on the car?

If under £40,000 then you would have a legitimate case to put to DVLA.

If over £40,000 then the £310 surcharge is correct.

[Jag_NE]

Scootersp said:

Cupramax said:

You have George Osborne to thank for the £40k car tax stupidity, meanwhile he sods off and gets paid a fortune elsewhere while admiring the disaster area him and Cameron ran away from.

Might not be so bad in the long run, once past year 7 it's £140 per annum whatever the vehicle, which is nicer than the +£500 for some current nice old wafter/gas guzzler/sporty number.

Urgh...i thought the 40k+ surcharge only applied up to 5 years old?

[cailean]

List price of car plus options included, not what is paid. Why is this so difficult?

[Nickp82]

Jag_NE said:

Urgh...i thought the 40k+ surcharge only applied up to 5 years old?

It does , the first additional payment is made on the car’ First birthday and the final on it’s fifth.

[johnoz]

SR7492 said:

From the DVLA:

'You have to pay an extra £310 a year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000.'

To me, that is the base price of any car advertised (website/brochure) excluding any optional extras/discounts that are applied at the end,

I'm going to query this with DVLA as mine was clearly advertised as £39,025 as list/base!

What annoys me even further, I was looking at 16/66 plate cars (same car/engine/facelift model) and the tax for them was £30 for the year - this is what I was expecting to pay on the 2018 car (Avant are £130 for some reason)

So not only has it gone from £30 to £140; its hiked by another £310 until 2023 - all for a 2ltr effing diesel which is supposed to be effiecient (its the Ultra model)

As you can imagine, not too pleased and if I had know these rates beforehand, wouldn't have botherted with a newer car and bought a 2/3 yr old instead!

Did you not notice the wording on the first page of your V5? on mine it says it plain as day, the higher VED and till when!

[Jimmy Recard]

SR7492 said:

From the DVLA:

'You have to pay an extra £310 a year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000.'

To me, that is the base price of any car advertised (website/brochure) excluding any optional extras/discounts that are applied at the end,

I'm going to query this with DVLA as mine was clearly advertised as £39,025 as list/base!

What annoys me even further, I was looking at 16/66 plate cars (same car/engine/facelift model) and the tax for them was £30 for the year - this is what I was expecting to pay on the 2018 car (Avant are £130 for some reason)

So not only has it gone from £30 to £140; its hiked by another £310 until 2023 - all for a 2ltr effing diesel which is supposed to be effiecient (its the Ultra model)

As you can imagine, not too pleased and if I had know these rates beforehand, wouldn't have botherted with a newer car and bought a 2/3 yr old instead!

After you added options, the price was over £40,000. So in other words, you're paying the rate that DVLA said you would.

The 'list price' is just the price of the car as listed by Audi. This is the price of the car+options before discounts (otherwise dealers would just discount cars to get the price below £40k)

This is how it has worked for YEARS for company cars. It works, there isn't a hole in it. This is the charge for buying a car with a list price of over £40,000. That it's a 2.0 litre, fuel-efficient diesel is irrelevant to its list price.

[Blue Oval84]

The new system seems fairer to me than the old one which still has plenty of Ford Mondeos stuck in the >£500 per year tax bracket.

At year five, the car is no longer considered to be of high value so the tax drops anyway. What's not to like?

[uuf361]

If your car had options which took its price to over £40k (I’m guessing you did) then you have to pay the extra tax. All the dealers know this, and it was clear to me when I helped my a Dad spec his car last year. We played around with configurations until we got one a shade under £40k....

[SR7492]

I guess I've got to suck it up!

Thanks all for the comments; appreciate the insight.