Graham Hill, Car Finance Expert, Explains The Car Tax Row

Sunday, 28. March 2010

The new road fund licence rules come into force on the 1^st April. For some it is good news as those with low emission cars will see the cost of their RFL or road tax reduced, in some cases to zero, but a big row has broken out because drivers have to renew before the 1^st April to ensure that the car is taxed at all times but because the DVLA was having a cup of tea they couldn’t be arsed to change their computer systems to enable you to benefit from the reduced rate so even though the new rate comes into force from the 1^st April you will have to pay the old rate when you renew. There is a way round it apparently, if you declare the car off the road the day before, ie 31^st March, which means you will have to keep the car off the road, then renew the tax on the 1^st April at the Post Office, declaring that the car is now back on the road. Of course if your tax is about to rise you had better renew it before the end of the month or have to pay the increase. By Graham Hill