VED

[phillme]

I know the VED goes up on vehicles of list price of 40k minus on the road costs ... but is the list price inc vat ? cheers

 

[Amarillo]

I know the VED goes up on vehicles of list price of 40k minus on the road costs ... but is the list price inc vat ? cheers

I expect the list price is:

1. the UK list price of the car on the day before the date of first registration, including VAT, car tax (where appropriate) and delivery charges, plus
2. the list price of any optional accessories with the car when it was first made available, plus
3. the price of any accessories added to the car after it was first made available (if they were added after 31 July 1993 and had a list price of £100 or more)

This is the list price for the purposes of employers' P11D form.

This would suggest that VW could sell a California shell, leaving the purchaser to add passenger seats, kitchen, and many options after registration to avoid the £40,000+ VED.

 

[WelshGas]

From What Car.

 

[Skinnee D]

Probably been said before, but might this not reduce future demand for new Cali's if people can beat the VED penalty with a new Transporter for a lot less than £40k (our dealer always has plenty in stock) and get it converted aftermarket?

 

[BerndRos]

Probably been said before, but might this not reduce future demand for new Cali's if people can beat the VED penalty with a new Transporter for a lot less than £40k (our dealer always has plenty in stock) and get it converted aftermarket?

I doubt it, two reasons, first if you want a Cali then your unlikely to go for a conversion, plus the higher residuals of a Cali against a conversion will easily cover the higher VED in the first place.

 

[Amarillo]

Probably been said before, but might this not reduce future demand for new Cali's if people can beat the VED penalty with a new Transporter for a lot less than £40k (our dealer always has plenty in stock) and get it converted aftermarket?

That seems to be the case, and I suppose the point of what I clumsily wrote in my final paragraph above.

It is an opportunity for a more modular approach to van manufacture: a single seat road legal chassis and body with other bits added post registration. If the definition is indeed the same as the P11D definition, even accessories such as bike rack and rubber mats costing over £100, bought as part of the package (including rubber mats discounted by 100%) would count towards the £40,000.

It should be fairly easy to keep a base price of the Beach below £40,000: harder for the Ocean, depending on how much the kitchen, wardrobe, etc. add to the price.

 

[Loz]

I expect the list price is:

1. the UK list price of the car on the day before the date of first registration, including VAT

Surely it could be argued that they can add tax to a tax so it should be the list price before VAT?

 

[Jabberwocky]

Loz, I'm sure you mean can't?

 

[Amarillo]

Surely it could be argued that they can add tax to a tax so it should be the list price before VAT?

I agree - it had always seemed illogical to me that we pay NI contributions on income tax, and income tax on NI contributions - but that is the way it is. Both income tax and national insurance are paid on taxable income (i.e. gross income less tax exempt deductions such as pension contributions and bicycle hire scheme repayments).

The three points above were a direct quote from the HRMC P11D guidance notes. If this is the definition of "list price" for the purposes of VED, and I think it will be, it differs from the P11D guidance as the list price is set, for VED purposes, on the day before first registration. The list price for company car tax purposes can vary as accessories with a VAT inclusive price before discount of £100 are provided by the company.

A surfboard holder at £97 is fine.
A Kayak holder at £115 is not.

 

[Digger]

Probably been said before, but might this not reduce future demand for new Cali's if people can beat the VED penalty with a new Transporter for a lot less than £40k (our dealer always has plenty in stock) and get it converted aftermarket?

Unless converted prior to first registration it would always remain a window van or van under DVLA classification. There may also be tax differential to pay. It would never be a California. The latter would result in much lower residuals. Seems we are stuck with paying up.

 

[phillme]

thanks for all the replys but don't seem to have a definitive answer .... probably plus vat but not definitely ...

 

[Amarillo]

thanks for all the replys but don't seem to have a definitive answer

Points 1 and 2 of HMRC are definitive. The definition of "list price" is set out in tax legislation.
http://cccfcalculator.hmrc.gov.uk/CCF0.aspx
Click "list price of car" for the definition.

Or see here:
https://www.gov.uk/government/uploa...achment_data/file/524001/480__2016__05_16.pdf

Quote from page 38 of the link above:
The list price is the inclusive price published by the manufacturer, importer or distributor of the car if sold singly in a retail sale in the open market in the UK on the day before the date of the car’s first registration. It includes standard accessories, any relevant taxes (Value Added Tax, car tax (where appropriate), any customs or excise duty, any tax chargeable as if it were a customs duty) and delivery charges, but excludes the new car registration fee because it is an administration fee, not a tax. The list price is not the dealer’s advertised price for the car, nor the price paid for the car, which may incorporate discounts or cashbacks from the list price. Second-hand cars are treated in exactly the same way as new cars. The list price is the price as outlined above on the day before the car was first registered (when the car was new).

Spookily, the *pre-VAT and delivery* list price of my Beach comes to exactly £40,000:
*edit (Thanks phillme)

 

[phillme]

thanks crispin ... but isn't a 150 dsg "list" price without options 41.190 ?