Hello,
just paid my car's road tax and had a thought about it. As I am paying with my net salary after income tax, wouldn't that mean its tax paid twice? If I consider my income tax bracket of 40% and given I pay 270 Pounds, am I not in fact paying 378 from my gross salary?
If so, can I claim that difference back from HMRC?
Just a thought, after all every little helps (as Tesco taught us).
Road Tax = tax paid twice?
Moderator: Modsquad
Re: Road Tax = tax paid twice?
Technically it isn't a tax, it's a licence.
Four decades on two wheels has taught me nothing, all advice given is guaranteed to be wrong
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Re: Road Tax = tax paid twice?
Why should you only have to pay tax once? Consider VAT that you pay out of your already taxed income.djcat wrote:Hello,
just paid my car's road tax and had a thought about it. As I am paying with my net salary after income tax, wouldn't that mean its tax paid twice? If I consider my income tax bracket of 40% and given I pay 270 Pounds, am I not in fact paying 378 from my gross salary?
If so, can I claim that difference back from HMRC?
Just a thought, after all every little helps (as Tesco taught us).
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Re: Road Tax = tax paid twice?
Yes, thats the reason why business can claim VAT back, or maybe because they would pay VAT twice if they didn't?you you wrote:Why should you only have to pay tax once? Consider VAT that you pay out of your already taxed income.djcat wrote:Hello,
just paid my car's road tax and had a thought about it. As I am paying with my net salary after income tax, wouldn't that mean its tax paid twice? If I consider my income tax bracket of 40% and given I pay 270 Pounds, am I not in fact paying 378 from my gross salary?
If so, can I claim that difference back from HMRC?
Just a thought, after all every little helps (as Tesco taught us).
Anyway....to pay a "road duty" out of taxed income would mean "the government" gets paid twice. Is there no way I can claim the gross to net difference back? I wouldn't want to do that with council tax as that one is for regional services and a different pot from the national government one but why do I have to pay taxes to them twice?
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Re: Road Tax = tax paid twice?
No. Businesses can claim VAT back if they are VAT registered as the tax is only payable by the final consumers but is collected at each part of manufacturing, supply and distribution chaindjcat wrote:Yes, thats the reason why business can claim VAT back, or maybe because they would pay VAT twice if they didn't?you you wrote:Why should you only have to pay tax once? Consider VAT that you pay out of your already taxed income.djcat wrote:Hello,
just paid my car's road tax and had a thought about it. As I am paying with my net salary after income tax, wouldn't that mean its tax paid twice? If I consider my income tax bracket of 40% and given I pay 270 Pounds, am I not in fact paying 378 from my gross salary?
If so, can I claim that difference back from HMRC?
Just a thought, after all every little helps (as Tesco taught us).
Anyway....to pay a "road duty" out of taxed income would mean "the government" gets paid twice. Is there no way I can claim the gross to net difference back? I wouldn't want to do that with council tax as that one is for regional services and a different pot from the national government one but why do I have to pay taxes to them twice?
Re: Road Tax = tax paid twice?
your earning enough on high tax, we all pay it too so be happy
But truthfully, if you do wiggle out of this, another tax will introduced anyway so its a lose-lose situation.

But truthfully, if you do wiggle out of this, another tax will introduced anyway so its a lose-lose situation.

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Re: Road Tax = tax paid twice?
The government is (sadly) free to make up any tax they want, even if they call it by a different name, such as registration fee. You won't win anything by fighting the people who can make up the rules as they go along.