Should You Buy Car Tax Near The End Of The Month?
By
HuutiMoney
If you are wondering whether or not you should buy car tax near the end of the month, you will find the answer to your question in the following blog post. When it comes to buying car tax in the UK, many people wonder if there is an optimal time to make the purchase. Some common questions that we will address here are whether buying a car tax near the end of the month can result in any benefits, why some car owners choose to tax their car near the end of the month and if there is an optimal date for buying car tax.
Should You Buy Car Tax Near The End Of The Month?
No, it is not a feasible idea to tax your car near the end of the month. The reason for this is that car tax or Vehicle Excise Duty is taken into account from the 5th day of the month when it is due. Therefore, paying your car tax at the end of the month means that you would have essentially lost a month’s payment.
This means that your car tax will only account for the month that has gone by and the next month’s payment for car tax will be due by the 5th day of the next month. In this case, you will be required to make the next payment in a matter of days or a week at maximum.
On the other hand, when paying your car tax every six months, making a payment towards the end of the month will result in a reduction of your payment for the next five months. This means that buying car tax near the end of the month will cause you to lose an entire month’s payment.
Additionally, if you opt for an annual payment, it will be considered as an 11-month payment for the upcoming car tax term. In this case, too, you will lose an entire month’s payment and will not be able to benefit from the free from surcharge status that vehicle owners gain from while paying car tax on an annual basis.
Therefore, it is recommended to plan the renewal of your car tax ahead of time to ensure that you have it in place before your current tax expires.
Why Do Some Vehicle Owners Buy Car Tax Near The End Of The Month?
Some vehicle owners buy car tax near the end of the month because there is a common belief among some individuals that buying car tax near the end of the month can save them money. The reason behind this belief is that when a new month begins, the pricing for car tax may change, potentially resulting in lower costs. However, it is essential to note that this belief is not entirely accurate.
The vehicle’s emissions level determines the pricing for car tax in the UK, its list price, and the date of its first registration. These factors play a significant role in establishing the cost of car tax and are not influenced by the timing of the purchase. Therefore, whether you buy car tax at the beginning, middle, or end of the month, the cost will remain the same.
It is also worth mentioning that car tax can be purchased online, over the phone, or at a Post Office. These options provide flexibility and convenience, allowing you to choose the most convenient time for you to make the purchase.
When Will My Car Tax Payment Show Online If I Buy Car Tax Near The End Of The Month?
According to the Driver and Vehicle Licensing Agency (DVLA), it generally takes 5 working days for renewed car tax to show online. This means that if you buy your car tax near the end of the month, your payment may show on the DVLA’s website at the start of the next month.
If you want to keep a regular check on the status of your car tax payment via the DVLA’s Vehicle Enquiry System, you can simply log in to your account and keep track of your payments.
What Is The Recommended Date To Buy Car Tax?
While there is no recommended date to buy car tax but it is generally beneficial for vehicle owners to pay their car tax before it is due and at the beginning of the month.
If you usually pay your car tax monthly, it is best to make your payment between the 1st and 5th of the month to ensure it covers the entire month.
However, if you pay your car tax after the 15th of the month, you should be aware that your payment will only cover the remaining days of the month, with a new payment due on the 1st of the following month.
Meanwhile, if your car tax is due to expire soon, it is advisable to renew it promptly to avoid any penalties for delay. For added convenience, you may choose to pay your car tax in advance, up to two months before the expiry date, if you will be away from the UK during that period.
Conclusion:
In conclusion, buying a car tax near the end of the month does not result in any cost-saving benefits. The pricing for car tax is determined by factors unrelated to the timing of the purchase. Therefore, it is advisable to plan your car tax renewal in advance to avoid any inconvenience or payment delays.
References:
How to tax your car – Confused.com
Everything You Need to Know About Vehicle Tax and Insurance | Age Co