logo
Ask the expert: Why must we pay a higher rate of car tax?

Ask the expert: Why must we pay a higher rate of car tax?

Telegraph06-05-2025

Dear Alex,
When we ordered our Toyota RAV4 in 2022, we had intended to get a 4x4 model, but in the end opted for a two-wheel-drive to bring the new cost below £40,000 and thereby be liable for the lower road tax. The car was eventually delivered 13 months after the order was placed; our dealer honoured the original price, due to delays caused by the war in Ukraine. One year after delivery we were charged vehicle excise duty (VED) by the DVLA at the higher rate. Both Toyota and the DVLA say nothing can be done because the list price at the time of delivery was indeed over £40,000. If so, we would surely have specified the car with four-wheel drive as originally intended. Is this right?
– AC
Dear AC,
You have been caught out by a loophole in the current car tax (VED) laws, which an increasing number of drivers are also experiencing. What's happened is that you ordered the car at one price, yet by the time it has been delivered, Toyota adjusted its prices to keep pace with inflation, taking the list price for your model over the £40,000 'luxury tax' threshold.
A manufacturer increasing the list price while a car is on order is, of course, nothing new. Usually, it's dealt with by the dealer applying a discount to bring the price down to the amount agreed when the car was ordered.
However, the rules are very clear about which price your car's tax rate is to be based on – it's the list price at the time of delivery. In other words, the price you agree when you order the car is irrelevant to the DVLA.
And while it will happily take optional extras into account if they bump that list price above the £40,000 threshold, it won't do the same with discounts that take the price below it.
For example, if you order a car costing £39,000 but its list price is £41,000 by the time it's delivered, you'll still be taxed at the higher rate – even if the dealer takes off £2,000 to match the price you agreed.
And there is nothing you can do about it, I'm afraid. It's just one more unintended consequence of the current, rather daft new car VED system. For any other readers hoping to order a car whose list price falls just below the £40,000 threshold, yours is a salutary tale.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Contract agreed for ex-Cambridgeshire council HQ Shire Hall
Contract agreed for ex-Cambridgeshire council HQ Shire Hall

BBC News

time27 minutes ago

  • BBC News

Contract agreed for ex-Cambridgeshire council HQ Shire Hall

Proposals to turn a former council headquarters into luxury visitor accommodation are a step closer after a hotel group signed a contract for its long-term Apartment Hotels Ltd, a subsidiary of the Lamington Group, exchanged contracts on a 250-year lease for Shire Hall in Cambridge with Cambridgeshire County Council and expect to complete within the next 18 proposals will require planning permission ahead of transforming the existing Nethsingha, Liberal Democrat leader of the council, said: "It has been sad for the community to see this much-loved building standing empty, so I am pleased that we are now able to announce the next steps." The council's headquarters relocated to the purpose-built New Shire Hall at Alconbury Weald in authority decided to sell Shire Hall in Cambridge while protecting the public area around the site, including Castle Mound, a scheduled ancient monument. Follow Cambridgeshire news on BBC Sounds, Facebook, Instagram and X.

Bude centre recycles microfibres from clothes washing
Bude centre recycles microfibres from clothes washing

BBC News

time31 minutes ago

  • BBC News

Bude centre recycles microfibres from clothes washing

An environmental technology firm has launched a microplastic recycling facility in Seas Group's (CSG) centre in Bude, which received a £1m grant for the project, takes cartridges which it sells to consumers and industrial laundries to attach to their washing the cartridge is full of microfibres, plastics which are shed from clothes in the wash, it is sent by freepost back to are then extracted at the centre from the cartridges and turned into usable materials for construction, packaging, including new domestic cartridges, said the firm. The project has received nearly £1m in funding from the Cornwall and Isles of Scilly Good Growth Programme, supported by the UK Shared Prosperity Miller, chief executive of CSG, said the "plug and play" battery-powered filter, which costs £129.99, could be fitted to a washing machine without the need of a cartridge lasts for about 100 washes and consumers can then buy another cartridge which goes into the filter for about £ which was created in 2017, had been selling the filters since 2020, said Mr of filters so far was "in the thousands", he said. CSG estimates once the centre is fully operational it could recycle 86 tonnes of microfibres each year."Microplastic pollution is a global crisis hiding in plain sight," said Mr Miller."It's in our oceans, our food, even our bloodstreams."This facility proves that it's not too late to act, and that we can build commercially viable solutions that protect the planet."The filters are already in use by Marella Cruises, which is capturing an estimated 500kg of microfibres per ship annually, said CSG.

The Ritz chef claims his £221 menu is 'the best value in London'
The Ritz chef claims his £221 menu is 'the best value in London'

Daily Mail​

time33 minutes ago

  • Daily Mail​

The Ritz chef claims his £221 menu is 'the best value in London'

The Ritz's long-standing chef has claimed the hotel's two-Michelin-starred restaurant's £221 tasting menu is the 'best value in London '. John Williams MBE has been The Ritz Restaurant's executive chef for more than 20 years and has curated a high-end menu using only the finest ingredients. Despite charging £221 for the seven-course The Epicurean Journey menu or £199 for the five-course version, he 'solemnly' believes his cuisine is the best value in the city. The seven-course experience allows diners to sample the best Williams MBE has to offer and includes signature plates of native lobster, duck liver, Dorset crab and pigeon. Because the chef goes above and beyond to source the finest British ingredients and ensures his kitchen employs the 'highest level of technique', Williams MBE believes his prices are a steal. 'I believe solemnly, 100 per cent, [that] I'm the best value in London, for cost of product and then selling price. Value for money is everything that I believe in,' he told The Telegraph. When Williams MBE started his role at The Ritz in 2004, his first change was to lower the prices of the menu du jour by £10 - which was a significant amount 21 years ago. The tasting menus can change depending on what produce is in season and feature an array of signature dishes. While most fine dining establishments strive for the best ingredients, Williams MBE believes he takes his produce sourcing to the next level. 'You could interview 100 chefs, they're all going to say that,' he said. 'Let me tell you there's only about three or four of them looking for the very, very best, and capable of paying the very, very best. Some of my ingredients are extreme in price.' Williams MBE told The Telegraph that he buys his Dublin Bay prawns for up to £9 each and the champagne and lobster sauces on his turbot dish are so precise, they are the sole responsibility of one chef. On today's seven-course epicurean menu, diners start with a plate of Dorset crab with crème fraiche and imperial caviar before being served a ballotine of duck liver with damson, a small plum-like fruit, and pistachio. Third in the line-up is the Native lobster with spiced carrot and lemon verbena then the Agnolotti, a stuffed pasta, with black truffle and Parmesan. Next is the chestnut-fed pigeon then dessert starts with grapefruit with lemon pepper and buttermilk. There is the decadent Ritz Signature Chocolate hazelnut and fudge to finish off the meal. What is on The Ritz Restaurant's £221 seven-course menu? Dorset Crab, Crème Fraiche and Imperial Caviar Ballotine of Duck Liver, Damson and Pistachio Native Lobster, Spiced Carrot and Lemon Verbena Agnolotti, Parmesan and Black Truffle Chestnut Fed Pigeon À la Presse Grapefruit, Lemon Pepper and Buttermilk The Ritz Signature Chocolate Hazelnut and Fudge The £199 five-course menu has the crab and duck liver, and Suffolk lamb as well as the famous Cornish turbot with two sauces; one made from lobster and the other from the Ritz Reserve Champagne Barons De Rothschild. For dessert, diners are served the grapefruit and, to finish, wild strawberry with lemon verbena and lime. To accompany the food, customers can add five or six glasses of wine selected to pair perfectly with the Epicurean Journey. Wine packages range from £140 to £750 meaning, with the 12.5 per cent discretionary service charge, one diner could pay almost £1,000 for the entire experience. According to The Ritz's website, the menus are 'fitting ways to impress a client with a corporate lunch, enjoy quality time with friends or family over a weekend lunch, or celebrate a special occasion with a memorable dinner.' Those who can fork out the eye-watering prices will have to wear their finest attire so as to not break the Ritz's strict dress code. Men are required to wear a jacket and tie and ripped jeans, trainers and sportswear are explicitly forbidden. This week, The Ritz Restaurant was named the UK's best at the National Restaurant Awards. Speaking exclusively to MailOnline, Williams MBE, said, 'With so many great restaurants across the UK, it is a true honour and privilege to receive this recognition. 'This award is a testament to our commitment to culinary evolution and affirms that, whilst The Ritz Restaurant is part of an historic landmark, it continues to remain relevant.' 'London's most decadent dining room is a wonderful and memorable assault on the senses,' the National Restaurant Awards wrote after revealing the prestigious rankings. Alongside the restaurant's 'exceptional' food, judges noted the allure of the opulent dining room settings.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store