Golf R Road Tax

[jaceyboy]

Can someone help, obviously if I know if you buy a new car with a list price of £40k or more you pay and extra £325 on top of standard £150 for the first 5 years, but do include the first years licence fee (£870 for golf R) or exclude it?

[PeteSoulDeep]

It’s included in the overall cost of the car. So yes, you do pay for it, just not upfront.

[Guzzle]

The luxury Vehicle Tax rate only applies in years 2 to 6. It's nothing to do with the first years tax, which is included in the full 'on the road' list price.

[SRGTD]

Can someone help, obviously if I know if you buy a new car with a list price of £40k or more you pay and extra £325 on top of standard £150 for the first 5 years, but do include the first years licence fee (£870 for golf R) or exclude it?

The additional luxury VED applies for five years from year 2. It doesn’t apply to the first registration when VED is solely emissions based in year 1. So for a Golf R;

• At first registration; emissions based VED rate of £870 applies. No additional luxury VED applies in the first year.
• At first renewal for the next five years; standard VED rate £150 plus the luxury VED rate £325 (so a total VED of £475 at current rates). These figures usually increase each year.

From the mk8 Golf price list;
The ‘First year rate’ will be based on the CO2 emissions, fuel type and the list price of the vehicle supplied by the Manufacturer or Retailer as applicable on the day before the vehicle is first registered and taxed.

Petrol or diesel vehicles with a list price over £40,000 at first registration will pay £475 a year, after the first ‘First year rate’ vehicle tax, for a period of five years. This comprises the £150 ‘Standard rate’ and £325 additional rate. After five years the vehicle tax will revert to the ‘Standard rate’ of £145 per year.

[jaceyboy]

What I mean is do you have £870 of options to add to the car before it hits the £40k or do you have to factor this into the list price?

[fredgroves]

The 40k limit is for the car only, not the first year road tax. So £39,999.99 or less and road tax on top.

In most cases you don't pay tax on tax (except on road fuel... Where you do  )

[jaceyboy]

The 40k limit is for the car only, not the first year road tax. So £39,999.99 or less and road tax on top.

In most cases you don't pay tax on tax (except on road fuel... Where you do  )

Ah good just what I was thinking, so technically you can spec the car like you said to £39,999 and the tax push it to £40,800 odd but it would still be £150 year only in tax....

[Exonian]

As Guzzle said in the other thread, be careful with the current delays that a sneaky list price rise before the car is delivered doesn’t tip you over.

I think with an R you’ve got to just say “what the hell” and spec it exactly how you want it, swallowing the extra £325 (it’s only £6.25 a week, less than a couple of  sickly paper cup coffees). Either that or /PCPlease a basic one and add your own alloys. Either one will still be the fastest bestest car on YouTube and neither will *need* DCC.

[jaceyboy]

As I buy my own cars (no finance) I would need to get a fairly basic one with a few options to make it under £40k because im not paying £475 just to do 3000 miles per year

[fredgroves]

3000 miles a year? If the thing had a manual choke, you'd never push it in