70 years ago, D Day, there were2,521,000 cars on our roads. Today we have in excess of 35 million. An eye watering income for HMG on road find tax. What will happen in 2030⛽️⛽️😬😬🤪
Useless Motoring Facts😜👍
- Thread starter Dustydog
- Start date
Even 70 years ago, Road Fund Licence had been ended for 6 years (ended in 1936). VED (Vehicle excise duty) is the current fee. Why 2030? My last three cars have all been £0 VED. The government need to resolve their tax hole long before 2030 comes around.
As they say there are few things in life you can be certain of, but one of them is taxes!
The government have all the power needed to restructure the VED system, or introduce other means of recovering taxes from owning a vehicle and /or driving as and when they want to.
For example my newly purchased second hand car which is a PHEV, (2017) fell into the trap of having an original list price of over £40K, so it has just cost me £480
ved for year 5, and next year it will still be £150. A lesser model with a list of under 40K would now be £0 ved.
Remember that whilst some cars presently do not pay any VED, they are still part of the VED system, its just that at the moment the Govt have reduced the tariff to £0, they can easily increase it.
The government have all the power needed to restructure the VED system, or introduce other means of recovering taxes from owning a vehicle and /or driving as and when they want to.
For example my newly purchased second hand car which is a PHEV, (2017) fell into the trap of having an original list price of over £40K, so it has just cost me £480
ved for year 5, and next year it will still be £150. A lesser model with a list of under 40K would now be £0 ved.
Remember that whilst some cars presently do not pay any VED, they are still part of the VED system, its just that at the moment the Govt have reduced the tariff to £0, they can easily increase it.
I agree they have the powers, what is missing is the plan. It's very easy for the government to change the tax base for new cars (i.e. cars registered after the change is announced), but actually much harder for cars already on the road. For cars registered before April 2017, the scheme is all based on CO2 with no weighting for electric range or "luxury" status (over 40K). Both our tiny Kia (996cc) and PHEV fell into this category and have £0 VED. Adding escalators (increasing VED as a % year on year) has no impact on 0...As they say there are few things in life you can be certain of, but one of them is taxes!
The government have all the power needed to restructure the VED system, or introduce other means of recovering taxes from owning a vehicle and /or driving as and when they want to.
For example my newly purchased second hand car which is a PHEV, (2017) fell into the trap of having an original list price of over £40K, so it has just cost me £480
ved for year 5, and next year it will still be £150. A lesser model with a list of under 40K would now be £0 ved.
Remember that whilst some cars presently do not pay any VED, they are still part of the VED system, its just that at the moment the Govt have reduced the tariff to £0, they can easily increase it.
My best guess is road pricing will become more wide spread - the ULEZ zones being the start of that, but ultimately all miles driven on public roads will need to be some how paid for. Drive more - pay more?
That would really cheese me off. So you make the effort to go green and get penalised. WeirdAs they say there are few things in life you can be certain of, but one of them is taxes!
The government have all the power needed to restructure the VED system, or introduce other means of recovering taxes from owning a vehicle and /or driving as and when they want to.
For example my newly purchased second hand car which is a PHEV, (2017) fell into the trap of having an original list price of over £40K, so it has just cost me £480
ved for year 5, and next year it will still be £150. A lesser model with a list of under 40K would now be £0 ved.
Remember that whilst some cars presently do not pay any VED, they are still part of the VED system, its just that at the moment the Govt have reduced the tariff to £0, they can easily increase it.
Are you saving enough on reduced petrol or diesel costs by using the PHEV to the maximum? Are there exemptions too in Birmingham for PHEV equipped cars even though no one can tell if you are running on fuel or electric.As they say there are few things in life you can be certain of, but one of them is taxes!
The government have all the power needed to restructure the VED system, or introduce other means of recovering taxes from owning a vehicle and /or driving as and when they want to.
For example my newly purchased second hand car which is a PHEV, (2017) fell into the trap of having an original list price of over £40K, so it has just cost me £480
ved for year 5, and next year it will still be £150. A lesser model with a list of under 40K would now be £0 ved.
Remember that whilst some cars presently do not pay any VED, they are still part of the VED system, its just that at the moment the Govt have reduced the tariff to £0, they can easily increase it.
The Birmingham and London ULEZ / Clean air zones are zero cost for any car that is Euro6 compliant. Does not have to be a PHEV, or even hybrid. AFAIK the only clean air zone free for EV and not PHEV or Euro6 is Oxford. The London congestion zone is £0 charge for registered EVs, but that goes away soon.
Whilst I agree with the sentiment you express, as long a EV's have a lower VED rate compared to ICE then your still making a comparative saving, but VED rates are variables at the discretion of the Govt, so that situation could change at any budget.
Escalators do not have to be based just on a percentage or a preceding value. They could be anything parliament approves, so don't assume your present £0 VED is safe!
I'm sure we will see more road pricing.
I used to favour loading tax onto road fuel, and that would have made those who use most pay most, but with the change to EV's that process is vastly more complex and potentially open to fraud, so I suspect it will still be a combination of VED and road pricing
Oh - I am quite sure it is not safe
Fully expecting some form of tax for EV, PHEV, zero rated petrol etc to come in. It's a question of "enjoy it while you can". But zero VED was pretty low on the list for the reasons to get any of the cars that we have today in that status. It was just another perk. Yes - same here. Adding tax for car charging to homes would be both technically and politically challenging. How do you tax sunlight? Agreed, escalating VED and fuel duty will likely be used to move users to "alternative fuel" cars or public transport. Road pricing will be common for all and make up the gap.
Whichever way you look at it , at the moment it is a lot cheaper to stick with your ICE vehicle than to invest in an EV.
I think that too is very dependent on circumstances. The main stay of “it’s cheaper to stick with what you have “ is based around “it’s cheaper to keep my old car than buy a new car”.
However, if you have a plan to buy a new car then an EV _may_ work out cheaper in the long run. Certainly my EV costs me less than an equivalent sized new ICE car would have cost.
Nothing surprises me. So Prof you do your very best to be green with a phev and end paying nearly double my 3.0 ICE. for VED. It makes me wonder what HMG bright spark thought that one up?
Which is why I referred to "at the moment". We simply could not afford or even think of buying an EV even if it is second hand as it does not represent value for money. However a hybrid may be worth considering.
With my State Pension well below the minimum wage and no sign of keeping pace with inflation the chances of me buying a new EV at the moment looks very unlikely😥A used
Lexus RH 450 hybrids has an attraction but overall drinks more juice than the Touareg
If the Chancellor sticks to his word the triple lock will be reinstated for pensions from next April. As the increase is based on figures relating to September this year it could be a 10% or more increase in State Pension for next year. Given an election could then be quite close he's hardly likely to want to upset the "oldies". Fingers crossed.
You also said “whichever way _you_ look at it” implying for others “at the moment” ICE are cheaper than EV. That’s a much broader statement than a personal position, which I wrongly interpreted.
But I do agree that it’s not universally true that EVs are more affordable or cheaper than ICE cars. It’s only true for some specific circumstances.
With more and more hybrids and electric vehicles coming onto the road the government will have to change its tax system as lower petrol and diesel sales will mean big drops in tax income provided prices do drop eventually. They do get a bit of VAT on electricity, but probably not enough, so road pricing looks the most likely.
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