MoHo Tax Reversed in Budget

[funflair]

He all
Would this have been know of as a rumour to the dealer.
We just picked up the Rimor Seal 5 on leap year day.
But did the deal three week earlier had to wait for the extras to be fitted.
I though when I was chipping them it seemed very easy.
We where told if it was on a 20 plate we would pay the higher rate.
So now not sure what rate it is on.
Thanks

Don't you know what VED/road tax you paid?

Martin

 

[Yorkshire Puds]

What a day, after waiting for what seems an eternity, I finally get the call this morning that my new Chausson 711 is being loaded in France and will be on the way by the of the day.

now this... superb, my bill has just dropped 2k

 

[Interceptor]

Hi Martin the DVLA can't find the registration of the van.
As a novice I just though it was like a car over 42k you pay £490
So she just got the top of the range car?

 

[Interceptor]

E up puds my loss will be your gain

 

[Yorkshire Puds]

Eyup Interceptor,

my gain will be Vanbitz gain too... can hardly wait.

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[MyrtleGuru]

Greta won't be very happy ??

Why’s that? Now that the decision’s been reversed you can buy a new van with the cleanest engine without getting charged extra tax.

Before that, you were better off finding an older dirtier engine and getting charged less tax, which was totally bonkers.

Greta should be happy, surely.

 

[Lenny HB]

I took delivery of a new 'van in mid Feb. The vehicle is Euro 6D and this is included on the V5. However, the CO emissions field has been left blank.

It was if it was on the C of C you got caught for the higher tax rate.

 

[Paddywack]

Hey, it’s not been a bad budget at all, despite all the doom and gloom. No fuel rises, no booze increases, no nasty surprises and now this. Labour will still slag it off big time though.

So Corbyn was hammered by the media for their costed expenditure plans, the Tories suggest an extra £100 billion of massive borrowing without an increase in taxation and mugs welcome it. The madness continues.

 

[funflair]

It was if it was on the C of C you got caught for the higher tax rate.

I take it that the CO2 figure was blank, only 6d on the CoC so that would still be the lower rate?

Martin

 

[ShaKen]

Does this not mean that the value of my current (nearly new) MoHo (should I want to sell it) has gone down? ?

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[Lenny HB]

Does this not mean that the value of my current (nearly new) MoHo (should I want to sell it) has gone down? ?

Probably, dealers will certainly use it as an excuse to give you a lower price.
Worst effected will be vans registered this year.

 

[romany]

Just tried to look on the DVLA site and it says vehicle could not be found ☹
I would have though eight day would be long enough to get it on the system.

Perhaps DVLA was waiting to see if budget would effect vehicle tax rates before putting them on the system

 

[jezport]

Does this not mean that the value of my current (nearly new) MoHo (should I want to sell it) has gone down? ?

If you were buying one what would you do? Buy one a couple of months newer with low road tax, or buy one slightly older and pay more road tax?

 

[9526]

If you were buying one what would you do? Buy one a couple of months newer with low road tax, or buy one slightly older and pay more road tax?

That’s a good point, but if you keep your new van for 3 years the difference in the tax for the new owner (for the remaining 2 years) is about £500.

Hardly a deal breaker on a van at say £40k

 

[Pausim]

Just tried to look on the DVLA site and it says vehicle could not be found ☹
I would have though eight day would be long enough to get it on the system.

My dealer said it would take 2 weeks to register my new motorhome, it came through after 16 days. I was not allowed to drive it away until the registration showed on the DVLA computer system.

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[StephDeLux]

I just mentioned it to the boss and she said but we are not buying another one.
Woman are so naive.

On the other hand, with Mercedes popping up everywhere, what can you do?

 

[jezport]

That’s a good point, but if you keep your new van for 3 years the difference in the tax for the new owner (for the remaining 2 years) is about £500.

Hardly a deal breaker on a van at say £40k

Agreed but I would still negotiate the price down by the £500 to take it into account.

 

[jezport]

So if you bought a van on the intrim tax band you will pay
£2135 year 1
£465 next 5 years
£4460 total
But after that it will drop to £145 which saves £120 a year compared to a 3500kg motorhome on PLG tax.
If anyone can work out how long it would take for both vehicles tax costs to equal but I guess it would be over 30 years for a PLG and not a chance on a PHGV.

 

[Lenny HB]

DVLA are on the ball - not,.
They have a new page about and it, you click on the link and it tells you all about stamp duty.

Vehicle Excise Duty rates for motorhomes from 12 March 2020

This Tax Information and Impact Note is about the Vehicle Excise Duty rates for new motorhomes from 12 March 2020.

www.gov.uk

 

[funflair]

DVLA are on the ball - not,.
They have a new page about and it, you click on the link and it tells you all about stamp duty.

Vehicle Excise Duty rates for motorhomes from 12 March 2020

This Tax Information and Impact Note is about the Vehicle Excise Duty rates for new motorhomes from 12 March 2020.

www.gov.uk

Says this now Lenny

This measure will result in new motorhomes (type approved M1SA) being included in the Private/Light Goods Vehicle or Private Heavy Goods Vehicle (HGV) Vehicle Excise Duty (VED) class from 12 March 2020.

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[Lenny HB]

Says this now Lenny

This measure will result in new motorhomes (type approved M1SA) being included in the Private/Light Goods Vehicle or Private Heavy Goods Vehicle (HGV) Vehicle Excise Duty (VED) class from 12 March 2020.

Click on the link on the page Martin, it tells you all about stamp duty.

 

[funflair]

Click on the link on the page Martin, it tells you all about stamp duty.

Ah OK I just read the headline which is right?

 

[sallylillian]

Martin you are one shrewd cookie, how did you know the £-€ would crash before your completion date??

 

[funflair]

Martin you are one shrewd cookie, how did you know the £-€ would crash before your completion date??

I think you mentioned it? I was tempted to buy a spare 100k and sell them back but didn’t so not that clever?

 

[peterc10]

Says this now Lenny

This measure will result in new motorhomes (type approved M1SA) being included in the Private/Light Goods Vehicle or Private Heavy Goods Vehicle (HGV) Vehicle Excise Duty (VED) class from 12 March 2020.

Have you seen the following bit towards the end of the linked government page.
"Furthermore, from April 2021, motorhome VED liabilities will be based on their CO2 emissions figure. "

So it appears that this change will only apply for a year, and then motorhome VED will be aligned with vans, with both being based upon CO2 emissions.

So next year it will be all change again, and I bet the VED will go up.

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[Lenny HB]

Have you seen the following bit towards the end of the linked government page.
"Furthermore, from April 2021, motorhome VED liabilities will be based on their CO2 emissions figure. "

So it appears that this change will only apply for a year, and then motorhome VED will be aligned with vans, with both being based upon CO2 emissions.

So next year it will be all change again, and I bet the VED will go up.

Missed that because the page appeared to be all about stamp duty.
So does that mean the higher the emissions figure you pay more tax but don't get clobbered for the luxury vehicle tax.

 

[peterc10]

Missed that because the page appeared to be all about stamp duty.
So does that mean the higher the emissions figure you pay more tax but don't get clobbered for the luxury vehicle tax.

If you click on the link now it goes to the correct page. Have a read and see what you think The bit I quoted is towards the end. Hiding the bad bit????

I would doubt that you would have to pay the "luxury vehicle" addition if it is going to be the same as a van. Never heard of a basic Ducato being described that way!

It seems to me that come next year the CoC and V5C will have to show the emission figures again. Just put that bit off by a year by the looks of it.

 

[Lenny HB]

If you click on the link now it goes to the correct page. Have a read and see what you think The bit I quoted is towards the end. Hiding the bad bit????

I would doubt that you would have to pay the "luxury vehicle" addition if it is going to be the same as a van. Never heard of a basic Ducato being described that way!

It seems to me that come next year the CoC and V5C will have to show the emission figures again. Just put that bit off by a year by the looks of it.

Looks like they will be taxed the same as Diesel cars & looking at the emissions (a converted van will be a bit higher than a panel van) it will be either £530 or £855 or £1280 for the first year then £260/£300/£325 a year depending on emissions.

 

[funflair]

If you click on the link now it goes to the correct page. Have a read and see what you think The bit I quoted is towards the end. Hiding the bad bit????

I would doubt that you would have to pay the "luxury vehicle" addition if it is going to be the same as a van. Never heard of a basic Ducato being described that way!

It seems to me that come next year the CoC and V5C will have to show the emission figures again. Just put that bit off by a year by the looks of it.

My take is that the emission figures will show anyway as that is the EU type approval rules, the change is this,

Policy objective
This measure ensures that new motorhomes with the latest engine technology do not attract significant VED increases as a result of Commission Regulation (EU) 2017/1151. This requires any multi-stage build, including those type approved M1SA, to record the carbon dioxide (CO2) emissions and fuel consumption on their certificate of conformity.

Then the bit that you are worrying about peterc10 doesn't worry me as it's just saying that motorhomes will be treated as private light goods and private heavy goods but will be class M1SA as opposed to the current classification which is M1SP (special purpose)

Just my take though.

Martin

 

[peterc10]

My take is that the emission figures will show anyway as that is the EU type approval rules, the change is this,

Policy objective
This measure ensures that new motorhomes with the latest engine technology do not attract significant VED increases as a result of Commission Regulation (EU) 2017/1151. This requires any multi-stage build, including those type approved M1SA, to record the carbon dioxide (CO2) emissions and fuel consumption on their certificate of conformity.

Then the bit that you are worrying about peterc10 doesn't worry me as it's just saying that motorhomes will be treated as private light goods and private heavy goods but will be class M1SA as opposed to the current classification which is M1SP (special purpose)

Just my take though.

Martin

My take is that the bit you quoted only refers to the changes for this year, not the further changes that are supposed to be coming next year. The bit I quoted makes it clear that next year the motorhome VED will be based upon their CO2 emissions

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