Isobel Lawrance

July 24, 2023

studying time: 2 protocol

Are you entitled to a car tax refund?

Automobile consultants are warning British drivers to take the mandatory steps after promoting their automobiles after it was revealed hundreds of thousands of Britons may very well be lacking out on street taxes owed by the federal government.

In line with LeaseCar and LeaseElectricCar, individuals do not declare again street tax after promoting their automobiles. Highway tax funds can vary from £0 for absolutely electrical autos to a whopping £2,605 per yr, relying on car mannequin.

The Ford Fiesta was the best-selling used automobile final yr. On the 2020 mannequin, street tax is £155 a yr – that means motorists may very well be lacking out on tons of and even hundreds of kilos in tax refunds. With the price of residing persevering with to rise, it is now extra necessary than ever to get better the cash you are rightfully owed.

The quantity that may be reclaimed clearly relies on what automobile was offered – age, make, mannequin and the way way back. After drivers have knowledgeable the DVLA that the automobile has been offered, they have to apply for a tax refund as quickly as doable in an effort to obtain the best doable cashback. Solely full tax months might be claimed, so time is of the essence.

In 2022, virtually seven million autos modified fingers within the UK. The Ford Fiesta tops the record of best-selling used automobile fashions. With the commerce and manufacture of vehicles being restricted because of the pandemic and the related worldwide lockdowns, the used automobile market has risen sharply lately.

Nevertheless, because of the elevated demand for used automobiles, used automobile costs have risen. The scarcity of recent automobiles through the Covid-19 years meant individuals regarded to purchase from others. The truth is, the common promoting worth of a used automobile within the UK in July 2022 was up virtually 20% year-on-year – standing at a whopping £17,173.

LeaseCar’s Tim Alcock says:

“Any driver who not too long ago offered their automobile after paying street tax is eligible for a refund from the state. For those who’ve paid your street tax for a full yr however sell the automobile after just a few months, you are entitled to a refund of many of the tax again into your checking account.

“It is very important observe that the DVLA tax refund is for entire months solely. Subsequently, it’s best to request the refund instantly to keep away from shedding any money. After promoting your automobile, drivers ought to inform the DVLA as quickly as doable to make sure they get as a lot a reimbursement as doable.

“Previous to promoting a car, the car log (V5C) must also be up to date to replicate any adjustments in identify, tackle or adjustments made to the car. Incorrect info may end up in motorists not receiving a tax refund.

“Additionally be sure to inform the DVLA that you’ve offered your automobile and supply the complete identify and tackle of the client. For those who do not do that, it’s possible you’ll not get your a reimbursement both.”