There are numerous factors to consider before purchasing or leasing a vehicle. You must put gas in your car when it is needed, obtain automobile insurance so that you are protected in the event of an accident, and it is also a good idea to have breakdown coverage. You must also tax your vehicle before driving it. Tax return accountants in London will explain to you all about car taxes and how to avoid paying more taxes
What exactly is road tax, often known as vehicle excise duty?
Vehicle Excise Duty (VED) is a sort of tax that you, the vehicle owner, must pay in order to drive or park your automobile on public highways. It is also referred to as road tax, despite the fact that it was discontinued in the 1930s, or automobile tax. Then-Chancellor George Osborne declared in 2015 that all VED funding would go toward road maintenance in the United Kingdom. Previously, the funds may have been used for other purposes if necessary. You can now be confident that the money you pay for VED each month or year will be used to improve and build roads across the country.
The amount of VED you must pay is determined by the age and model of your vehicle. This is because the VED system was implemented to limit the amount of pollutants emitted into the atmosphere by older and less efficient vehicles. Vehicles that emit more pollution than others are taxed more heavily. This serves as a deterrent to drivers from continuing to use these automobiles. Owners of newer, cleaner vehicles pay less VED. This is also why automobiles with larger engines are taxed more heavily — they use more gasoline and so emit more emissions than cars with smaller engines.
It is a legal duty to pay VED. If you do not pay it and are stopped by the police, you may face a fine of up to £1,000.
Who is in charge of paying automobile excise duty?
Now that you know what VED is, who is accountable for paying it?
The registered keeper of the car is liable for paying it; however, this does not necessarily mean that they must pay it directly – someone else inside the same family, for example – but the registered keeper is accountable if the car is not taxed. The owner should therefore seek the help of accountants in London who ensures that the car is taxed, even if they are not responsible for paying for it.
It is the registered owner's responsibility to ensure that the automobile has a Statutory Off-Road Notification (SORN) recorded with the DVLA if it is not in use.
Who pays the tax on a leased car?
People are frequently perplexed about who is responsible for paying the tax on a leased car — technically, these automobiles do not belong to the person leasing, but to the loan company. This is why, in most leases, the tax is included in the monthly rate, so you don't have to worry about it. However, you should always check this when leasing a car to ensure that the vehicle is taxed.
If you're unsure whether your leased automobile has VED, you can double-check on the government's website. All you need is the vehicle's registration number and the make/model of the vehicle to achieve this. If you cannot locate your vehicle or it is not taxed, contact your loan provider to discuss the situation. If you are still concerned about automotive taxes and would like to discuss tax and tax issues, consult with expert cheap accountants in London.
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