Are you owed a vehicle tax rebate?

Studying Time: 2 minutes

Are you owed a automobile tax rebate? 

Motoring consultants are warning UK drivers to take the mandatory steps after promoting their vehicles, after it was revealed tens of millions of Brits might be lacking out on cash owed from the federal government in overpaid automobile tax. 

After individuals promote their vehicles, they don’t seem to be claiming again automobile tax, in response to LeaseCar and LeaseElectricCar. Automobile tax funds vary from £0 for totally electrical automobiles to a staggering £2,605 a 12 months, relying on the automobile mannequin. 

Now, greater than ever, claiming again cash you’re rightfully owed is vital as the price of dwelling continues to chunk.

After all, the quantity that may be claimed again will depend on what automobile they’ve bought – together with the age, make, mannequin, and the way way back. After informing the DVLA that the automobile has been bought, drivers want to use for a tax rebate as quickly as they’ll to get the utmost cashback potential. Solely full months’ value of tax will be claimed – so time is of the essence. 

In 2022, virtually seven million automobiles modified palms within the UK. The Ford Fiesta topped the chart for the most-sold used mannequin of automobile. With automotive commerce and creation restricted because of the pandemic and related international lockdowns, the used-car market has soared in recent times.  

On account of elevated demand for second-hand vehicles, nonetheless, the worth of used vehicles has elevated. The scarcity of recent vehicles over the Covid-19 years meant individuals have been seeking to purchase from others. In actual fact, in July 2022, the typical sale value of a used automobile within the UK was up virtually 20% on the earlier 12 months – sitting at a cool £17,173. 

Tim Alcock from LeaseCar says: 

“Any driver who has just lately bought their automobile after paying street tax will likely be eligible for a refund from the federal government. In case you’ve paid your street tax for a complete 12 months but promote the automobile after a few months – you may be eligible to obtain many of the tax again into your checking account. 

“It’s vital to notice that the DVLA tax refund solely applies for full months, so it’s finest to use in your refund immediately to keep away from lacking out on any money. After promoting your automobile, drivers ought to inform the DVLA as quickly as potential to make sure they get as a lot a refund as potential. 

“Earlier than promoting a automobile, the logbook (V5C) also needs to be up to date to mirror any change of title, tackle or modifications made to the automobile. Any particulars that are incorrect could forestall motorists from getting a tax rebate. 

“Additionally, guarantee to inform the DVLA that you just’ve bought your automobile, and supply the total title and tackle of the customer. Failing to take action may additionally cease you getting any a refund.”