new car tax rip off

[izzzi]

Is this just another way for the Government to steal our money

If a car is sold on the 1st of the month, both parties will pay tax for that month.​

Surely The DVLA should not get away with this

 

[Alanp35]

Perhaps try to arrange a sale/ purchase to take place towards the end of the month.

 

[noblehead]

It's a cash cow for the government, before you could forget about the reminder and be reminded just by looking at the disc on your car, now there's no chance of that

 

[AndBreathe]

Under previous rules, if the seller kept the tax disc, in order to secure a refund, the same would apply. Part months have never been charged or refunded.

Edited to add that under previous rules, the DVLA actually had to have received the disc by the end of the previous month in order to get a refund, so effectively a car would be off the road for a few days before the end of the month if the seller wanted the fullest refund.

 

[douglas99]

How do you think they're going to fund the enormous decrease in revenue from income tax they are proposing?
Tax is required to fund the country, your vote merely decides which route you pay it by.

 

[izzzi]

Perhaps try to arrange a sale/ purchase to take place towards the end of the month.

That is true,yet the buyer would still have to legally tax the vehicle from the start of that month which has already been purchased by the seller.
It all comes down to what @douglas99 has said.
Not sure if the Prime Minister remembered about this con trick when he spoke today.
" David Cameron says he wants to put fairness back into the system, "

 

[douglas99]

" David Cameron says he wants to put fairness back into the system, "

But he's a politician.
He never said what was fair, or indeed, what the system was.

 

[douglas99]

His biggest con iis going to be pensions. You get the chance to get your pot, rather than buy an annuity.
Sounds good.
But he gets tax on it,

 

[AndBreathe]

His biggest con iis going to be pensions. You get the chance to get your pot, rather than buy an annuity.
Sounds good.
But he gets tax on it,

But you've had tax relief at your highest marginal rate for every contribution you made to it, and annuities are taxed ea earned income. So, in truth, it's just a case of timing. Tax up front if you take the whole pot, or tax each time pension income is paid.

It could be said that the current system is less fair, in that a pensioner dying relatively soon after retiring could be contributing large sums of money to the annuity providers' profits. The pension provider (insurance company/investment house usually) is then taxed on their profits..

 

[douglas99]

Yes, sounds good, until you realise, instead of a steady source of tax, over the future years, the government are expecting to get a windfall in one lump sum now.

 

[JTL]

 

[paul-1976]

Mr Camerons last ditch and desperate manifesto perhaps?

 

[AndBreathe]

Yes, sounds good, until you realise, instead of a steady source of tax, over the future years, the government are expecting to get a windfall in one lump sum now.

Not everyone will take their whole pots, or they will vest over a number of financial years, in order to manage their tax affairs.

Anyone considering doing this should seek specialist, strategic advice from an IFA and if their tax affairs are in any way complex, an accountant (and lawyer). Most people will also be best advised to review their wills in the light of an imminent retirement with these new rules.

There is still more detail to come out of this.

 

[douglas99]

Not everyone will take their whole pots, or they will vest over a number of financial years, in order to manage their tax affairs.

Anyone considering doing this should seek specialist, strategic advice from an IFA and if their tax affairs are in any way complex, an accountant (and lawyer). Most people will also be best advised to review their wills in the light of an imminent retirement with these new rules.

There is still more detail to come out of this.

It's a winner.
Instead of tax on a small pension of a few thousand, people will take the maximum they can, without moving into a higher tax band. It'll be years of income tax in one hit for the government.
Then they're going to push the 40% band even higher is 2020, so even a bigger pot to take!

 

[AndBreathe]

It's a winner.
Instead of tax on a small pension of a few thousand, people will take the maximum they can, without moving into a higher tax band. It'll be years of income tax in one hit for the government.
Then they're going to push the 40% band even higher is 2020, so even a bigger pot to take!

It could be argued it's a win/win situation, depending on your view and attitude to risk.

 

[douglas99]

Oh, it's a winner for me.
Obscene amount of cash, income tax cuts, mortgage paid off, typical of any government that is winning today, and leaving a massive hole in the economy tomorrow. But that's my kids problem.

 

[noblehead]

Forgot to say, Ken Bruce touched on this subject this morning, he said spare a thought for the companies that make the tax disc holders, it will be strange not seeing them in the corner of the windscreen.

Off subject, they said on the radio yesterday that 80,000 people were prosecuted last year for seatbelt offences, hard to believe seeing how it's 31 years since the seatbelt law came in.