Quizzes & Puzzles5 mins ago
"Punishment" For No Tax
my G/F has a classic car (1960's) that's exempt from tax. It normally stays in our garage.
in order to clear the garage, she's parked it on the road. We thought we'd better check tax/insurance and it turns out although there is no charge for the tax, you have to do something like registering it for no tax. If someone were to report it, what is the punishment for not taxing something that is exempt from tax (if you see what i mean!)
Answers
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All vehicles must either be taxed or declared (and kept) off the road by way of a SORN.
The penalty for no ax if dealt with in court is a fine of £1,000 or five times the annual duty (whichever is the greater). So obviously inyour g/f's case it will be £1,000.
However, fines are income related and the recommended fine for avoiding tax for 1-3 months is a fine of half a week's net income; for periods of 4-6 months it is one week's net income and for 7-12 months it is 1.5 week's net income. Beyond that the court can impose a fine as it thinks fit (subject to the statuory maximum). There will also be a "surcharge" of 40% of the fine imposed and costs which, for a guily plea will be abou £100. All fines are reduced by one hird for a guily plea.
However, the DVLA often make out-of-court offers. These are at their discretion.
You G/F should also realise that apart from the requirement to be taxed, if the car is not declared SORN it must also be insured.
The cost may be 0 but it is not an exemption. The cost of VED is not related to the punishment for not having it. So even if the the VED is 0 then it needs to have it. Just do it on line, you only need the V5:
https:/
"Fine £80 / £40 if paid early"
That is simply for being the registered keeper of an untaxed vehicle, dave.
What is described here is "keeping an untaxed vehicle" or more probably, if it is seen on a public road, "using an untaxed vehicle", for which higher penalties apply.
Then there is the insurance matter as well. If the DVLA pursue the tax matter, they will almost certainly enforce the insurance matter as well.
For information, the car in question is exempt from Vehicle Excise Duty (Car Tax).
Section 1A(1) of Schedule 2 of the Vehicle Excise and Registration Act 1994 states,
"Subject to sub-paragraph (2), a vehicle is an exempt vehicle at any time during the period of 12 months beginning with 1 April in any year if it was constructed more than 40 years before 1 January in that year." [Emphasis added]