HMG and EV Income Tax Benefit in Kind

[RogerL]

The "average" motorist has been getting it on the cheap for years, but I don't expect a massive hike. Look to the future though with the IEA's latest report that fossil fuel usage will soon peak, yet developments for extraction continue apace, and there will be a fall in fuel and LNG prices as producers fight for a reducing market share. What joy! 🤞

Don't hold your breath waiting for a fall in fuel prices - If we get global over-production, the OPEC cartel will "simply" reduce their supply to keep prices up

 

[Buckman]

Oh dear 😥You know who will know this . I expect a massive hike in our VED. Not something the average motorist will welcome.

We are expecting the cost of fuel to rise by about 10p so are keeping both vehicles topped up. This will be in addition to the probable VED increase. We are wondering if VAT will be increased as it seems obvious the cost of goods is going to increase quite a bit either way.

 

[otherclive]

Don't hold your breath waiting for a fall in fuel prices - If we get global over-production, the OPEC cartel will "simply" reduce their supply to keep prices up

Well that contradicts recent Saudi action to increase their output in order to regain market share even though prices are below their target of $100 a barrel. Despite OPEC+s best efforts they haven’t recently been able to keep near to $100 a barrel apart from the time of the Ukraine invasion. Russias continued ability to sell low priced oil to China and India in particular has undermined other members of OPEC. Plus India then exports refined products to Europe too. So we are still buying Russian oil!

As increased usage of renewables comes on line oil demand will fall and then all producers OPEC or not will be chasing market share to support their economies.

The chart below shows crude prices for five years.

 

[Dustydog]

Fascinating. Maybe a good idea to hold onto our ICE for cheaper future motoring😉

 

[otherclive]

Fascinating. Maybe a good idea to hold onto our ICE for cheaper future motoring😉

Not a bad idea.

 

[RogerL]

Fascinating. Maybe a good idea to hold onto our ICE for cheaper future motoring😉

I intend to anyway - at 9 years old depreciation has become negligible - it hasn't had any faults since the warranty expired so I have a large notional pot of savings for future repairs - I'm resigned to the cost of insurance increasing with age - and fuel cost would have to increase dramatically to have any effect on my mileage.

 

[ProfJohnL]

I seriously doubt the UK government has forgotten about VED or the reduction in fuel usage as EV'stake a growing share of the vehicle marke. I'm sure the Civil services departments have several alternative contingency plans that could be implements quite quickly by whichever political party has formed the government.

With advent of EV's with their inherent ability to take power from different places in ways that cannot be traced directly i.e Home charge, business charger, or public charger. I'm pretty certain will make pay by mile a bigger possibility in the near future.