Road Fund Licence and Changing Car

nheather

Distinguished Member
Silly question probably, but I’ve had company cars for so long this is the first time I have had to consider this in twenty years.

So my road fund licence is due, appreciate it is all paperless now. For the past years I have just paid the whole year in one go.

Was about to again but then it occurred to me that I will be selling my car before 12 months is up, maybe in as little as four months.

So if you have paid up all up front how easy is it to get the unused bit back when you sell.

Or would it be better for me to pay monthly, it’s a little bit more but I would feel more in control.

What do you do?

Cheers,

Nigel
 

John7

Well-known Member
In my experience, it's easy and painless to claim a refund. You only get whole months back though......

I'd get the year, then you have no worries about being untaxed if there's any delays selling or your plans change.
 

LV426

Administrator
Staff member
If I remember correctly the refund is automatic when you send in the V5 "sold" slip.
 

IronGiant

Moderator
If I remember correctly, LV426 remembers correctly :thumbsup:
 

LV426

Administrator
Staff member
What EV are you paying tax on?
Me? Mine is zero. But "IIRC" goes back to when I sold it's predecessor's (also an EV) predecessor (a very old diesel).
 

IronGiant

Moderator
What EV are you paying tax on?

nheather's wife has a brand new Leaf and he has an ICE which is what he may be handing back next year.
 

wongataa

Well-known Member
So my road fund licence is due, appreciate it is all paperless now. For the past years I have just paid the whole year in one go.
It is Vehicle Excise Duty (VED) commonly called road tax (but road tax was actually abolished in 1937). The money is not ringfenced for road maintenance and just goes in the Government's general taxation pot with all the taxes we pay.
Was about to again but then it occurred to me that I will be selling my car before 12 months is up, maybe in as little as four months.

So if you have paid up all up front how easy is it to get the unused bit back when you sell.
It is incredibly easy as you don't need to apply for it. A refund for any unused months is automatically given when the new owner registers the car using the appropriate number form the new keeper part of the V5C or when you transfer the registration online. It was the same before it all went electronic as well (apart from being able to transfer the registration online). Refunds have always been automatically sent out when the DVLA is notified of the transfer.
 

noiseboy72

Distinguished Member
In essence, you can no longer transfer Road Fund Licence when you sell a car. This ensures that the car has valid insurance and MOT at the time of sale, as you cannot tax it without these items.

A nice little earner for the government when you consider that for each sale they get an extra months tax for the car!!
 

anticlaus105

Well-known Member
Yep auto refund and you don't even need to post anything off as it can be done online. As mentioned you will only receive refund for any unused months whereas the new owner will have to pay from the start of the month, so double money for HMRC. Kerching.
 

mjn

Distinguished Member
But the refund is a cheque!!
 

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