Mazda RX-8 - new car tax rules, we've run into trouble - taxitaxi

My son bought a car from a local garage doing a trade in on his old car. The sale completed on the 2nd October but prior to that the garage had taxed the car on his behalf so that he could drive it away. He queried with them whether they could still do that with the new car tax rules but they assured him that they couldn't sell the car untaxed and could still do this. So, he has the tax disc (£275 worth) they obtained on his behalf pre sale. All was lovely and he was loving his car until he got a letter from DVLA telling him he had been pinged on an ANPR camera and was being fined for no tax.

Having established that it appears the money he paid has been refunded to the previous keeper, who surrendered the car in trade several months ago. So he immediately taxed it again and wrote to DVLA.

There has been an exchange of letters, he has now spent £550 taxing this car and they still won't let him off the fine.

Does anybody know if there yet any legal challenges to the new legislation yet? My inclination is to tell him to let them take him to court, as they have not mentioned any of the facts in his letters. I imagine the magistrates might take a different view if they knew the circumstances

Mazda RX-8 - new car tax rules, we've run into trouble - Galaxy

I think I'd be asking the garage for the £275. They gave your son information which was incorrect.

Mazda RX-8 - new car tax rules, we've run into trouble - taxitaxi

They have said they will refund the £275, although this has been going on nearly a month and it hasn't arrived yet...I imagine the previous keeper had quite a nice Christmas on that!

Mazda RX-8 - new car tax rules, we've run into trouble - brum

I think it unlikely a magistrate would dare set a precedent and open the floodgates. (Ignorance of the law is no excuse and all that....)

Mazda RX-8 - new car tax rules, we've run into trouble - skidpan

Look on e-bay, Autotrader, your local free sheet, traders and private sellers are still advertising cars as having 4 months tax for example.

Shows there is a widespread ignorance of the new rules.

Mazda RX-8 - new car tax rules, we've run into trouble - Hamsafar

When the previous owner informed DVLA they had sold it and/or the new keeper registered it in their name, the refund of the previous tax will have been raised automatically and the vehicle tax status changed to tax due. I don't see how the seller is liable for anything other than refunding the £275 despite being wrong.

Mazda RX-8 - new car tax rules, we've run into trouble - SteveLee

If the car has an old style tax disc then it is still taxed on resale and the old tax disc is still transferable as it always was.
Mazda RX-8 - new car tax rules, we've run into trouble - Auristocrat

No. Under the new system from 1st October 2014, if a car is bought on or after 1st October any remaining tax is refunded to the last recorded owner after completion of the change of ownership details, and the new owner is responsible for taxing the car from the date of change of ownership/purchase.

Mazda RX-8 - new car tax rules, we've run into trouble - taxitaxi

I agree, in normal circumstances ignorance of the law is no excuse. We are still waiting for the garage to send the refund and yet another letter from DVLA has arrived saying they have reviewed the further information but the decision stands..although it is obviously templated and unsigned.

But, there does appear to be widespread ignorance and I am at a loss to know how you can do a trade in at a garage, drive in with one car, and drive out with another (obviously with the terms agreed in advance) and have valid tax on your new car unless it is done in advance

Mazda RX-8 - new car tax rules, we've run into trouble - bathtub tom

am at a loss to know how you can do a trade in at a garage, drive in with one car, and drive out with another (obviously with the terms agreed in advance) and have valid tax on your new car unless it is done in advance

Simple!

I bought a car from a dealer last October. I'd previously left a deposit and insured it before I collected it. I paid the balance and then using one of the dealer's PCs, taxed it online with the information off the V5.

Mazda RX-8 - new car tax rules, we've run into trouble - skidpan

Simple!

I bought a car from a dealer last October. I'd previously left a deposit and insured it before I collected it. I paid the balance and then using one of the dealer's PCs, taxed it online with the information off the V5.

You don't even need a PC, any smartphone of tablet will do.

Mazda RX-8 - new car tax rules, we've run into trouble - pd

I don't understand why if the car was purchased on October 2 you got a tax disc at all?

A dealer can still tax a car on behalf of a customer as long as it is done using the V5C/2.

Mazda RX-8 - new car tax rules, we've run into trouble - taxitaxi

Because the garage taxed it before collection as they would have done in the past, it was taxed at the end of September..so a disc was issued

Mazda RX-8 - new car tax rules, we've run into trouble - pd

Because the garage taxed it before collection as they would have done in the past, it was taxed at the end of September..so a disc was issued

That was pretty daft as in any event you'd have wasted a month's tax.

If it had been taxed on October 2 when you collected it the system would have worked fine. The problem was caused by it being taxed in a different month than you bought it.

Mazda RX-8 - new car tax rules, we've run into trouble - Auristocrat

The new car tax rules are quite clear - www.gov.uk/government/news/vehicle-tax-changes

When you buy a car it is your responsibilty to ensure the car is taxed.

Mazda RX-8 - new car tax rules, we've run into trouble - skidpan

You say the sale was completed 02 October so why would the dealer have taxed the car in September?

The car would have been taxed under the new rules and no disc issued.

But it appears quite simple to me. The dealer did not tax it so you broke the law. You will have to pay the back duty, fine and hopefully get your dealer to refund you.

Easy to check, just enter reg number and make on the web page.

https://www.vehicleenquiry.service.gov.uk/

Edited by skidpan on 12/01/2015 at 10:17

Mazda RX-8 - new car tax rules, we've run into trouble - thunderbird

Lets assume the dealer taxed the car in September on behalf of the new owner.

The deal was completed on 02 October and the V5C would have been completed and sent to the DVLA to register the car in the new owners name.

Under the new rules that came into force on 01 October the change of ownership would have triggered an automatic tax refund to the previous owner, was that the dealer or the person they bought the car from?

So basically the dealer may well have taxed the car but that would have been refunded when ownership changed.

Under the new rules the new owner has to tax the car before using it simply because any remaining tax is always refunded to the previous owner. Tax cannot be passed to the new owner.

Mazda RX-8 - new car tax rules, we've run into trouble - pd

Lets assume the dealer taxed the car in September on behalf of the new owner.

The deal was completed on 02 October and the V5C would have been completed and sent to the DVLA to register the car in the new owners name.

Under the new rules that came into force on 01 October the change of ownership would have triggered an automatic tax refund to the previous owner, was that the dealer or the person they bought the car from?

So basically the dealer may well have taxed the car but that would have been refunded when ownership changed.

Under the new rules the new owner has to tax the car before using it simply because any remaining tax is always refunded to the previous owner. Tax cannot be passed to the new owner.

The tax is refunded to the previous registered keeper, which isn't quite the same thing. Unless the dealer had registered it in their name the refund will have gone to the last person on the logbook which would have been a nice surprise for them!

Mazda RX-8 - new car tax rules, we've run into trouble - thunderbird

The tax is refunded to the previous registered keeper, which isn't quite the same thing. Unless the dealer had registered it in their name the refund will have gone to the last person on the logbook which would have been a nice surprise for them!

Exactly. That is why I added the words "change of ownership would have triggered an automatic tax refund to the previous owner, was that the dealer or the person they bought the car from?"

Mazda RX-8 - new car tax rules, we've run into trouble - skidpan

Having re read the previous posts it would appear that my previous post was wrong.

The OP says

Because the garage taxed it before collection as they would have done in the past, it was taxed at the end of September..so a disc was issued

so it appears they were given a tax disk that was taken out in September when they collected the car.

But as soon as the V5C was sent in for the change of ownership an automatic refund would be sent to the previous registered keeper. As was said above, that would be a nice surprise for them (@ £275 for 6 months a very very nice surprise).

It must be remembered that you don't have to return a disc now like you did in the past.

Edited by skidpan on 12/01/2015 at 14:17

Mazda RX-8 - new car tax rules, we've run into trouble - jgrahampo

The change in VED was very well publicised , the rules are not difficult to follow.I fail to see how anyone cannot understand it.

Mazda RX-8 - new car tax rules, we've run into trouble - Bromptonaut

If I'm reading this correctly the car was taxed under the old rules in September. Other paperwork concerning the change of ownership was not processed until after 01 October when the system changed.

There was clearly going to be some confusion around changes of ownership in fortnight or so from 21/10 to around 08/11. In those circs DVLA's deision to fine seems perverse unless there's prima facie evidence of somebody trying to 'game' the system.

If I were OP's son I'd be persuing that via all channels including my MP and suggesting maladministration.

Mazda RX-8 - new car tax rules, we've run into trouble - Auristocrat

When the car was taxed by the dealer is a red herring.

The actual change of ownership occured on 2nd October - which would have been under the new rules. The change of ownership on 2nd October would have generated a refund of tax to the previous registered keeper.

The new registered keeper would have been responsible for taxing the car from 2nd October, which they didn't do. Therefore when the new owner was flagged by the ANPR, they were driving an untaxed vehicle, and the fine is correct.

It isn't rocket science!

Mazda RX-8 - new car tax rules, we've run into trouble - pd

When the car was taxed by the dealer is a red herring.


Not completely. Had the dealer taxed the car on the 2nd of October using the V5C/2 then the tax would have remained valid for the change of keeper.

What happened here is that the car was taxed under the old system but then ownership transferred under the new. It is an unusual anomoly that it straddled the two systems.

There is no reason why dealers cannot tax a car for a customer under the new system as long as it is done correctly.

Mazda RX-8 - new car tax rules, we've run into trouble - Auristocrat

But the dealer taxed the car under the old system.

There is NO straddling between the two systems.

The old system finished 30th September and the new system started 1st October.

Quote from the DVLA page on the changes -

"Buying a vehicle

From 1st October, when you buy a vehicle, the vehicle tax will no longer be transferred with the vehicle. You will need to buy new vehicle tax before you can use the vehicle.

You can tax the vehicle using the New Keeper Supplement (VSC/2) part of the vehicle registration certificate (V5C) online or by using our automated phone service - 24 hours a day, 7 days a week on 0300 123 4321."

For example - My neighbour sold his VW in October. He sent off the New Keeper Certificate to get the balance of his tax back, and when the new owner collected the car, he allowed her to use his computer to tax the car.

Edited by Auristocrat on 13/01/2015 at 10:01

Mazda RX-8 - new car tax rules, we've run into trouble - Bromptonaut

Auristocat,

There may well have been a technical breach of the rules because of the day the efective transfer took place.

There was hough nothing unusual under the old rules in the dealer taxing the car before it was handed over. There was inevitably scope for confusion over the week or so either side of 1 October. As a matter of good administration DVLA should be sympathetic to cutomers caught out in the change unless there is evidence they were trying to beat the system.

Mazda RX-8 - new car tax rules, we've run into trouble - skidpan

The law has been broken through simple ignorance.

The dealer appears to have taxed the car for the purchaser (why before collection God knows) just like he always has probably.

The buyer drives off with his car with a shiny new tax disc in the window on 02 October.

Unfortunately the law change on 01 October means the tax purchased in September will be refunded on the change of ownership which is 02 October.

This has resulted in the car being untaxed.

But ignorance is no defence.

I acquired a car on 03 October and despite it having a tax disc in the window I knew to tax it before I used it on the road. It had been publicised enough over the previous months.

Mazda RX-8 - new car tax rules, we've run into trouble - Auristocrat

Taxation is cut and dried. If you miss the deadline for submitting your tax return, you get fined. In this respect car tax is no different. There was a distinct cut off for the old system, and the change in car ownership clearly occurred under the new system. End of.

Edited by Auristocrat on 13/01/2015 at 11:36

Mazda RX-8 - new car tax rules, we've run into trouble - jgrahampo

Any one that finishes a post with "end of" should be taken out and shot.

Thank you.

Mazda RX-8 - new car tax rules, we've run into trouble - madf

Any one that finishes a post with "end of" should be taken out and shot.

Thank you.

Anyone who uses tyhe phrase "should be taken out and shot" is asking for touble. End of.

:-)

Mazda RX-8 - new car tax rules, we've run into trouble - taxitaxi

Thank you so much for all the replies.

In spite of my user name I am not a taxi driver, far from it, I spend my days jumping through the administrave hoops in agriculture, so I was aware that there would be changes to the system but am still grappling a little with how they are to be managed. A system that requires access to a PC or smartphone in order for a car to be legal on the road seems to me to be to be a dangerous thing given that websites can be unstable or overloaded and network access is not countrywide. That is assuming a purchaser knows how to access the internet on their phone.

Yes I agree that some confusion was inevitable and was hopeful with an exchange of letters with DVLA that they would see that an honest mistake has been made, however all we seem to get back from them is templated letters with no reference to the points we have made and continuing demands for a settlement figure or threats of court. And to add insult to injury the garage have still not refunded the money they were given to tax the car.

Mazda RX-8 - new car tax rules, we've run into trouble - Auristocrat

The system DOESN'T rely on people having access to the internet or a smartphone.

One can apply for car tax at a Post Office or by phone - 0300 123 4321.

https://www.gov.uk/vehicle-tax

Edited by Auristocrat on 15/01/2015 at 09:09

Mazda RX-8 - new car tax rules, we've run into trouble - Galaxy

I think you're going to have to push the garage to get your £275. How did they let you know they were willing to pay it? Verbally, presumably.

You need to put your request for payment in writing. Send it by Recorded Delivery and state that time is of the essence. I would suggest you give them 14 days in which to comply. Also, if it isn't paid, you will take the matter further.

If they still refuse to pay then Moneyclaim or small claims court. But, do bear in mind, they may-well deny ever saying they would pay you, assuming this was verbally given. Do you have a witness who heard what they said?

As someone else has mentioned, could be worth speaking to your MP regarding the question of the ANPR prosecution.

Mazda RX-8 - new car tax rules, we've run into trouble - taxitaxi

My response regarding internet access was to those who declared it was simple, you just do it online. On a Sunday or in areas where internet access is limited that does only leave the phone line, assuming you can get through.

The garage accept they have misinterpreted the new rules and said from the outset that they had not received any guidelines, they also now say the cheque is in the post, we have had some communication by email as well as phone so although they are slow, I think it will arrive in due course.

I think, given all the circumstances, it is likely a court outcome would be an absolute or conditional discharge, which is not the end of the world and certainly cheaper than the £155 the DVLA want as an out of court settement

Mazda RX-8 - new car tax rules, we've run into trouble - Bromptonaut

I think, given all the circumstances, it is likely a court outcome would be an absolute or conditional discharge, which is not the end of the world and certainly cheaper than the £155 the DVLA want as an out of court settement

Personally I'd be pursuing this with DVLA with a view to persuading them that court action against factual background here is unfair and oppressive. You need to get that in front of somebody senior though and doing so involves the risk of them commencing court action.

Only you can decide if your 'appetite for risk' is such that you're prepared to chance that.

Mazda RX-8 - new car tax rules, we've run into trouble - Auristocrat

"On a Sunday or in areas where internet access is limited that does only leave the phone line, assuming you can get through."

Some Post Offices that renew Vehicle Tax are open on Sundays - there is one local to us that opens 0700-1300 on Sundays.

Mazda RX-8 - new car tax rules, we've run into trouble - alan1302

Yes I agree that some confusion was inevitable and was hopeful with an exchange of letters with DVLA that they would see that an honest mistake has been made, however all we seem to get back from them is templated letters with no reference to the points we have made and continuing demands for a settlement figure or threats of court. And to add insult to injury the garage have still not refunded the money they were given to tax the car.

The DVLA won't care - you have broekn the law and they want their money

Mazda RX-8 - new car tax rules, we've run into trouble - skidpan

And to add insult to injury the garage have still not refunded the money they were given to tax the car.

But the garage did tax the car, they gave you a disc.

Unfortunately, as said above several times, the new rules mean that was refunded to the previous keeper when the car changed ownership.

Whoever the previous owner was has your money.

Mazda RX-8 - new car tax rules, we've run into trouble - skidpan

If the car has an old style tax disc then it is still taxed on resale and the old tax disc is still transferable as it always was.

Sorry but you are wrong

We acquired Dads old car in early October. The V5C was sent in to transfer ownership from Dad to my wife and within a couple of weeks he recieved an automatic refund of the remaining VED.

Before we drove the car we re-taxed it on line.

Young lad in our office got his dads old car late last year. Just like us his dad got a refund when the ownership was tranferred and he had to re tax the car on line before using it.