V.E.D (Road tax changes)

[Simon82]

Probably been discussed before but thought it was worth mentioning as kicking in this April.
Wonder how many new cars will now have the price of £39,999
Think the "standard" flat rate is a good idea however.

https://www.gov.uk/government/uploads/s ... dustry.pdf

[Stevoraith]

So an Exige S will be £1700 tax in the first year, £450 for the next four and then revert to £140.

Ouch!

[Simon82]

So an Exige S will be £1700 tax in the first year, £450 for the next four and then revert to £140.

Ouch!

Yeah, be good for those buying second hand after the 5 year mark but bit of a hike for those buying new.

[douglasgdmw]

Wonder what will happen with "Dealer" registered cars as to whether the 1st 'real' owner would have to pay the rate?

George

[Simon82]

Wonder what will happen with "Dealer" registered cars as to whether the 1st 'real' owner would have to pay the rate?

George

I'd imagine so. I assume the change of owner rules still apply whereby tax is non transferrable.
Might mean dealers running demonstrators for longer period or, more likely, will push the prices of the ex demos/ Pre registered up to cover.

[BiggestNizzy]

I just don't understand why they don't stick it at a flate rate of £100 and stick a penny or two on fuel.

okay I did some back of the fag packet calculations everyone pays £100 road tax per year (makes sure your MOT etc is valid) and petrol goes up by 12p a litre.

[Corranga]

I just don't understand why they don't stick it at a flate rate of £100 and stick a penny or two on fuel.

okay I did some back of the fag packet calculations everyone pays £100 road tax per year (makes sure your MOT etc is valid) and petrol goes up by 12p a litre.

The argument is usually because adding tax to fuel means that pretty much everything physicial then goes up in price (since everything gets distrubuted by a truck or van at some point), and then it's too hard to govern transportation firms having their own fuel stations, or claiming it back, or something.

I think it's the same old rule of politics. Parties are scared of pissing off too many people in case they don't get voted in again. Changing things like this piss people off. Probably also that people near London do more miles commuting and politicians never want to piss them off too much.

On a side note, it's a real shame that the Tories aren't taking the lack of electable Labour (i.e. the closest to a guarantee that they'll be in next time around as possible) to push and enact some lesser popular ideas, but overall good for everyone ideas..

[campbell]

I think it's actually down to Civil Servants. Keeping complex tax systems...for cars and many other things...justifies the roles of many of them. #controversial

[thinfourth]

I just don't understand why they don't stick it at a flate rate of £100 and stick a penny or two on fuel.

okay I did some back of the fag packet calculations everyone pays £100 road tax per year (makes sure your MOT etc is valid) and petrol goes up by 12p a litre.

The argument is usually because adding tax to fuel means that pretty much everything physicial then goes up in price (since everything gets distrubuted by a truck or van at some point), and then it's too hard to govern transportation firms having their own fuel stations, or claiming it back, or something.

I think it's the same old rule of politics. Parties are scared of pissing off too many people in case they don't get voted in again. Changing things like this piss people off. Probably also that people near London do more miles commuting and politicians never want to piss them off too much.

On a side note, it's a real shame that the Tories aren't taking the lack of electable Labour (i.e. the closest to a guarantee that they'll be in next time around as possible) to push and enact some lesser popular ideas, but overall good for everyone ideas..

Step 1 leave the EU
Step 2 Set special level of VAT on fuel of 25%
Step 3 Allows companies to claim back VAT on fuel like they already do

Job done

[Scuffers]

Eh?

so this is little more than a tax grab on the so called 'rich'?

set an artificial £40K barrier, then screw everything over that.
So, if you buy a Tesla, pay up, etc etc..

Makes a mockery of the bull about paying for pollution - but I guess they realised that once they set CO2 limits vs. tax, every car maker played the numbers and the government's tax take plummeted.

It's stuff like this that makes me hate the civil service, they really are vindictive morons.

[kerryxeg]

If I understand the changes correctly high band cars currently £550 a year will be better off after the first year - somewhat academic. But clearly not a green incentive.

I also noted that the £40k threshold is the list price of the car on the road with any options you spec. So even if you negotiate a lower sale price you'll still be hitting the limit.

[campbell]

Is £40k the magic ceiling?

I'm ok for a wee while yet then. Skoda's will struggle to hit test I expect

[Simon82]

If I understand the changes correctly high band cars currently £550 a year will be better off after the first year - somewhat academic. But clearly not a green incentive.

Only those purchased after April 17, unfortunately cars purchased before that in the higher band will still have to pay the £550 a year.

Seems to be more of a money stance now rather than an environmental one. As mentioned if car is over £40k then you have to pay the additional tax for the first 5 years then it will drop to the standard tax rate. The likes of Tesla's will now have to pay the premium tax for 5 years then they will drop to zero after the 5 years....by which time they will probably have changed it all again anyway!

[j2 lot]

You can be sure that the £40k limit won't keep pace with rising prices and before you know it the majority of cars will be paying the high purchase tax

[Scuffers]

You can be sure that the £40k limit won't keep pace with rising prices and before you know it the majority of cars will be paying the high purchase tax

so the next question is what the manufacturers do with list prices...

you know they will just produce stripped out low priced versions to fit the £40K bracket.

I really HATE stupid crap like this, it's the output of stupid civil servants and brain dead politicians.

As has been said before, many times, the cheap easy way to replace road tax is just to add a couple of pence to fuel, this cut's out all the additional administration of managing road tax (goodbye DVLA), just how much would that save?

We all know it's just another way to tax us, just be honest about it - we have billions of £ of backlogged road repairs and yet where does the money go?