£40k tax threshold before or after VED?

[WelshGolf]

So If I now go on the configuration and spec up my order, the same as when I originally ordered, the total price is now £40,300

Golf 8 GTI Clubsport 2.0 TSI 300PS 7-speed DSG 5 Door
OTR recommended retail price: £38,760
Basic retail price (excluding VAT): £31,263
VED first year (included in OTR) – RDE2 standard: £555
Your choice total: £1,540
Sub Total £40,300
Total £40,300

Now is the £40k threshold calculated on the Total cost or before adding the VED first charge on (£555)

Basically i'm trying to figure out if, because of the price increase, I'm going to be over the £40k. Thanks.

[SRGTD]

The you should take the total on the road list price and subtract the first reg fee and first year’s VED. If the resultant figure is less than £40k you won’t be liable for the luxury VED.

If there are any price increases between now and when your car is registered, then unfortunately that situation could change.

[WelshGolf]

So are we saying it's £40,300 - £555 then? scraping me under at £39,745 

[SRGTD]

So are we saying it's £40,300 - £555 then? scraping me under at £39,745 

£40300 minus first year VED £555 minus first registration fee £55 = £39,690. That’s assuming there’s been no change in the first registration fee since VW stopped producing brochures (£55 was the figure published in the Sept 2021 Golf brochure, which I think was the final brochure before VW stopped producing them).

[WelshGolf]

Nice, so just scrapping in then at the moment when I was clear of it when I originally ordered. Let's hope there isn't another price increase before I pick my car up in 2025.

[Prospective]

Hi I ordered my Clubsport in December 2020 and specifically specced it below & £40k. Told delivery March 2021. Actual delivery end of September 2021. Before driving off the forecourt I was given my invoice showing list price below £40k. I asked even if after 2 price rises I would be caught by the additional VED on vehicles over £40k. Guess what? DVLA use the fact it’s the list price at actual time of delivery even tho VW stood by the original list price. My dealer is appealing this, it’s been refused once but DVLA have asked for further proof of list price. I am not confident tho despite my dealers optimism.
List price at ordering was £39,900 - list price in September £40,900.

[SRGTD]

Hi I ordered my Clubsport in December 2020 and specifically specced it below & £40k. Told delivery March 2021. Actual delivery end of September 2021. Before driving off the forecourt I was given my invoice showing list price below £40k. I asked even if after 2 price rises I would be caught by the additional VED on vehicles over £40k. Guess what? DVLA use the fact it’s the list price at actual time of delivery even tho VW stood by the original list price. My dealer is appealing this, it’s been refused once but DVLA have asked for further proof of list price. I am not confident tho despite my dealers optimism.
List price at ordering was £39,900 - list price in September £40,900.

Yes, VED rate is based on the list price at time of first registration, even if the list price at time of ordering was different (lower).

[Guzzle]

You're not the first. A few have been caught out by this.

A standard GTi is about 6% more expensive on list price now than it was a year ago.

[Foxy367]

You're not the first. A few have been caught out by this.

A standard GTi is about 6% more expensive on list price now than it was a year ago.

6% is a pretty big increase in 12 months!!! 

[Carl_45]

6% is massive.

It’s shameful that the additional “luxury” VED has been set at £40k since 2017 and has never been increased in line with car list price increases.

I like a VW as much as anyone here, but a golf is hardly “luxury” is it, in 2017 the additional tax was mainly reserved for the expensive end of the SUV market.

I could rant about this all day….. but I shan’t…. It’s Christmas after all