Reply With QuoteIf it’s a lease (PCH) then road fund license is included in the payments. Do you have a PCP? Have you taxed the car previously yourself? If yes to the previous question, I would simply tax it for 6 months and then claim back the difference.
I’m interested to know if anyone has been in this situation before and can offer advice. I have a car on a three year lease from Mercedes-Benz. The lease ends on September 23rd, but I received a vehicle tax renewal reminding me that the tax expires on August 31st. Assuming the vehicle is being collected by Sept 23rd at the latest, I’m not sure whether it’s best to tax the vehicle tomorrow by paying the full 6 or 12 month rate and claim the refund when the car is returned, or set up a monthly direct debit (which incurs a 5% surcharge) on the assumption only one payment will be made. If Mercedes are slow in informing the DVLA that I am no longer the vehicle’s keeper, will that mean I have to pay a second month’s tax?
Any advice is appreciated.
Ian
If it’s a lease (PCH) then road fund license is included in the payments. Do you have a PCP? Have you taxed the car previously yourself? If yes to the previous question, I would simply tax it for 6 months and then claim back the difference.
I’m in exactly the same situation - PCP car goes back on the 4th Sept, and tax expired on 1st. Spoke to the DVLA and they advised setting up the monthly payment option and then cancelling as soon as the car has been picked up. Worst case scenario is I will just pay for a single month.
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I’m in exactly the same situation - PCP car goes back on the 4th Sept, and tax expired on 1st. Spoke to the DVLA and they advised setting up the monthly payment option and then cancelling as soon as the car has been picked up. Worst case scenario is I will just pay for a single month.
Thank you for the interesting reply! It’s definitely not a PCP, there’s no option to purchase at the end of the plan, but I’ve had to pay the tax before (I’m sure it was something like £465 last year as the car was over £40K new). I shall be digging out all the paperwork from Mercedes today to see exactly what it said about the responsibility for paying the road tax. I wonder if I’ve paid something I shouldn’t have paid for the last couple of years?!Originally Posted by johnny778
Thank you tredders. Given that I need to check my contract situation carefully (see above), it looks like the direct debit option is the way to go then and hope it’s just one month. I bet there’ll be some kind of “Admin charge” too, but hopefully not too much.
I assume as you said its a non-ownership agreement, you don't have the log book/V5.
However, in the event you do (or have the 11 digit reference number) and for anyone else reading, go on line and follow the steps on the DVLA website:
https://www.gov.uk/sold-bought-vehicle/y
As above, without your hands on the logbook its difficult to rely on admin departments in lease companies/dealerships to action quickly. I would go down the DD route and cancel as suggested above.
Thanks Paddy! for your reply yesterday and to the others who took the trouble to reply. The paperwork wording was “Contract Lease Agreement”, however (rather oddly) I do have the V5. Anyway, I followed the advice and paid by DD yesterday and will cancel later this month.
Thanks again,
Ian
V5 only indicates the registered keeper, not the owner.
That’s a very good point.
Car tax is no longer transferable. When you send the car back you get a refund for any outstanding whole months remaining.
Cancel vehicle tax and get a refund
Your vehicle tax is cancelled and you automatically get a refund when you tell DVLA that your vehicle has been:
sold or transferred
taken off the road and you’ve made a SORN (Statutory Off Road Notification)
scrapped at an authorised treatment facility
exported
changed so it’s exempt from vehicle tax
Some lease companies hold onto the V5s, some don't which is why I asked if you had it.
Whilst true that legal owners/keepers aren't necessarily the same person/entity, the online form to cancel your VED doesn't distinguish that.
You'll still be able to cancel yourself online if you have that 11 digit number from the V5
My son has a lease deal that is all inclusive. He wondered why he was getting DVLA demands for the road tax ..... he then recalled at the start of the agreement the dealership sent him a cheque to cover it. One year on he had obviously forgotten that. I presume some do this to save paperwork. So check that you weren’t given a credit at the start
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