More crap

[sssammm]

Dealers urged to prepare for paperless Tax Discs.

Members of the motor trade are being urged to take note of the upcoming changes to vehicle taxation, and to be prepared for the switch to electronic VED licences on October 1st 2014. The existing paper tax disks will no longer be valid from that date, and all car and van owners will update their details and pay their road tax by direct debit at that stage.
Perhaps the biggest impact for the trade is that any existing pre-paid tax will no longer be transferable from a previous owner, so when a car is sold or part-exchanged, the vehicle effectively becomes untaxed at point of sale. Cars held at a dealership cannot be test-driven without trade plates, and any attempt by dealers to take an untaxed car or van on the road will be treated as an offence and will accordingly result in penalties for the offending driver and/or the dealership or trade organisation.
If a vehicle has been left with a dealer for servicing, it is essential to confirm with the customer that the car is taxed during that period, or to perform a check with the DVLA before road-testing the car after the service or any repairs. This can be done online through the DVLA website simply by supplying the vehicle registration number and make. Dealers can also ask a customer to sign a declaration confirming that the vehicle is taxed and has valid insurance prior to accepting it for service.


Under the new guidelines, applications for vehicle tax will be possible 24 hours a day, 7 days a week either online or via a phone helpline. It is also important to note that vehicles which are exempt from any payment due to low emissions must still be registered and taxed in the same fashion. Upon trading in or selling their vehicle, drivers will be automatically refunded for any unused tax once DVLA has been notified of the sale.

 

[John]

They can't miss out on an opportunity to be jobsworth about it.

 

[AMGeed]

The DVLA are going to make a lot of money with this scheme.

Sell your car on the 1st of the month and lose the remainder of that month's refund as the tax isn't transferrable.

Meanwhile,the new owner has to pay for fresh road tax from the beginning of the month if he want to take it for a service before using it.

Another win win situation dreamed up to fleece the motorist again.

 

[prprandall51]

I am shocked that RFL is no longer transferable with the sale. I must be missing something?

Suppose I want to sell my car in a month's time but the tax has just run out. If I tax it for 6 months, is it the case that 5 months of that tax is "wasted" and that the new owner will have to tax it from the moment they purchase it?

I suppose that would be tolerable so long as you can buy a month's tax, but can you? And, if so, is it at a stupid uplift?

 

[AMGeed]

I am shocked that RFL is no longer transferable with the sale. I must be missing something?

Suppose I want to sell my car in a month's time but the tax has just run out. If I tax it for 6 months, is it the case that 5 months of that tax is "wasted" and that the new owner will have to tax it from the moment they purchase it?

I suppose that would be tolerable so long as you can buy a month's tax, but can you? And, if so, is it at a stupid uplift?

My interpretation of the new ruling is that yes, you would have to apply for 6months RFL, and then wait to be automatically refunded for the full months left when you sell it.

And yes, the new owner has to tax the car as the tax stops when the car is sold. Absolutely stupid idea IMO

 

[markjay]

Surely, it's good thing? Like cashless parking? Or computerised MOT?

No need for the DVLA to print paper discs, no need to wait 5 days for the post, and no more fake discs.... and the windscreen can remain clear as nature (and the car manufacturer) intended.

It will be odd losing this iconic artifact, but one must move with the times.

Next we should hope that councils follow suit with Residents Parking Permits.

It's a thumbs up from me.

 

[MrKenny]

I fully agree ref fake RFL discs, but having worked on blue lights in the 'old days', the ability to check via phone and computer nowadays is brilliant. The trouble is I work abroad a lot now, and to see both a 'tax disc' AND proof of insurance, weighs alongside ANPR... Unless there's a whole lot more cars that are ANPR enabled than I think there is, or see on the Lifestyle and 'Reality' programmes.... Maybe I need to watch more of them. But then again.

 

[davidsw]

The DVLA are going to make a lot of money with this scheme.

Sell your car on the 1st of the month and lose the remainder of that month's refund as the tax isn't transferrable.

Meanwhile,the new owner has to pay for fresh road tax from the beginning of the month if he want to take it for a service before using it.

Another win win situation dreamed up to fleece the motorist again.

Is this not the case now , if the seller applies for a refund he only gets the remaining full months back , and the buyer has to tax from the first of the current month.

 

[cinek]

What they are not telling you, is that they will be doing away with reminder letters too.

If you fail to tax your vehicle in time and then drive it on the public road, you are committing an offence.
Yes, I know that in principle there is nothing wrong with the above, but it was nice to get that reminder in the post to bring this to our attention.

 

[moonloops]

Is this not the case now , if the seller applies for a refund he only gets the remaining full months back , and the buyer has to tax from the first of the current month.

Yes

 

[Major774]

No more eBay listings for tax disc holders lol.

 

[AMGeed]

Is this not the case now , if the seller applies for a refund he only gets the remaining full months back , and the buyer has to tax from the first of the current month.

Yes, you are correct.
What I was trying, badly, to highlight is the fact the remaining tax cannot be passed on to the buyer as is the current situation. So refunds for part months, and payment for part months for both seller and buyer are another money spinner for the DVLA.

 

[w124nut]

Vehicle Excise Duty: introducing a direct debit payment scheme

Who is likely to be affected?
Individuals and organisations that own a motor vehicle (cars, vans, motorcycles, buses,
heavy goods vehicle, etc).

General description of the measure
Motorists will be able to pay their Vehicle Excise Duty (VED) by direct debit should they
wish to do so.

Policy objective
The direct debit scheme will allow motorists to spread their VED costs, and help families
and businesses in managing their finances. The scheme will support the Government’s
core vision to maximise the digital delivery of vehicle licences and contribute to tax
administrative efficiency savings.

Background to the measure
Budget 2012 announced the Government’s aim to develop a direct debit scheme to allow
motorists to spread their VED payments. The Government announced in Autumn
Statement 2013 that from 1 October 2014 motorists will be able to pay their VED by direct
debit should they wish to do so.

Currently, motorists can pay their VED either annually or in two equal six monthly
payments. Payments can be made online, on the phone, at the Post Office, at localised
Driver and Vehicle Licensing Agency (DVLA) offices or by post to the DVLA Head Office.
The new direct debit scheme will allow motorists to pay their VED either monthly,
bi-annually or annually and enjoy the administrative convenience of having their licence
renewed automatically.

At present, paying VED bi-annually attracts a surcharge of 10 per cent. Biannual and
monthly payments made by direct debit will attract a lower 5 per cent surcharge.
Detailed proposal

Operative date
The measure will have effect from 1 October 2014 and will apply to all vehicles except for
brand new vehicles, vehicles exempted from paying VED altogether, vehicles registered
under the DVLA’s car fleet scheme, and vehicles paying the HGV Levy. The direct debit
scheme will be extended to vehicles paying the HGV Levy at a future date.

Current law
The Vehicle Excise and Registration Act 1994 (VERA) provides for the charging of VED on
the taking out of a vehicle licence.
Section 4(1) of VERA provides that VED is payable at the annual rate of duty where a
vehicle licence is taken out for a period of twelve months. Under section 4(2) of VERA,
the rate of VED for licences taken out for a six month period is slightly higher. The rate in
respect of each of these licences is 55 per cent of the annual rate.

Proposed revisions
Legislation will be introduced in Finance Bill 2014 to amend VERA to provide for motorists
to pay their VED by direct debit should they wish to do so, and to provide for motorists to
pay a 5 per cent surcharge when making direct debit payments either monthly or
bi-annually.

Economic impact
The measure is not expected to have any significant economic impacts.
Impact on individuals and households
It is envisaged that this measure will help motorists to spread their
VED costs, and will support families and businesses in managing their
finances.

Motorists who currently buy a six month VED licence will pay a lower
surcharge if in future they instead choose to pay by monthly or
bi-annual direct debit payment. A typical Ford Focus driver who
currently pays VED bi-annually and continues to do so would be £9
better off over the year in the direct debit scheme.

All drivers that currently pay their VED annually can either choose to
continue to remain outside the direct debit scheme or pay annually by
direct debit, with no change in their VED payment levels.

Equalities impacts
The measure applies equally to all motorists and there are no
particular impacts on people with protected characteristics.

Impact on business including civil society organisations
This measure is expected to have a negligible impact on businesses
and civil society organisations. There are expected to be negligible
one off costs from businesses in familiarising themselves with the new
policy and in setting up VED direct debit payments if they wish to, and
no additional ongoing costs. The new direct debit scheme will however
allow businesses and motorists to enjoy the administrative
convenience of having their VED licence renewed each year automatically.

Operational impact (£m)
(DVLA or other)
DVLA estimate that the scheme will cost £8 million to set up and will
deliver annual net efficiency savings of £2 million by year three.

Other impacts
Other impacts have been considered and none have been identified.


Monitoring and evaluation
The measure will be monitored through information collected from VED receipts.

Further advice
If you have any questions about this change, please contact DVLA on 0300 790 6802
or visit the GOV.UK website. his may make things a bit more clear then on the other hand, it may add to the confusion:

 

[Deleted member 6183]

Vehicle Excise Duty: introducing a direct debit payment scheme



Operational impact (£m)
(DVLA or other)
DVLA estimate that the scheme will cost £8 million to set up and will
deliver annual net efficiency savings of £2 million by year three.


:

Apologies for just quoting one bit, it makes the thread easier to read.

If you want to understand the reason for the change it's the bit I quoted above.

Efficiency, and cost savings to a lesser extent, are what big organisations are all about these days.

 

[Doodle]

Other impacts that might stop us raking in even more cash from the motorist have been considered and none have been identified.

There, fixed that for them.

However, in some ways we still get it easy - in some countries you have to pay a fair whack to change ownership of a vehicle with the registration authority, a service we get for the price of a stamp.

 

[GH421]

B*stards!!!

 

[Spinal]

I'm curious to see how this will be enforced; i.e. by flesh&blood people on the streets or by cameras.

My gut feeling is that it will be all camera based. This will mean that all the people who forget to re-tax their car for a day, or those who buy a car and drive home before taxing it, will get a fine and have to pay it.

On the othr hand, all those cars that are registered at phantom addresses will get away with it... as it will just sent a ticket to whatever phantom address that may be.

M.

 

[Teflonso]

I can't see a problem, especially for dealers.

The days when a dealer could cash in a tax disc for the outstanding value are long gone. Any half savvy owner will claim back when they trade in, and any half decent dealer will now encourage them to do so because there's nothing in it for the Arthur Daleys.

The people this is going to hit is private sellers. You won't be able to sell a car on a drive away basis unless the buyer wants to take the chance to drive home with no tax.

But, it is also a small step to closing the loophole of scallywags buying cars with a false address and landing you with the speeding and parking fines. To get tax, they would have to have a traceable bank account or risk getting stopped by the plod at the end of the road.


.

 

[Spinal]

To get tax, they would have to have a traceable bank account or risk getting stopped by the plod at the end of the road.

Or a stolen credit card...

 

[markjay]

At current you can opt for a reminder by text message (though oddly this is a chargeable service - you would have thought it is in the DVLA's own interest that motorists pay on time?). Hopefully this arrangement will still be available for those not paying by DD.

The MOT centres I used in the past seem to run their own private reminder scheme - I get text messages from them as well - and a telephone call from the Kia dealer. But it would be good if the DVLA kept their reminder service in place.