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Car tax and the budget

Jet
Jet Posts: 1,649 Forumite
Part of the Furniture 1,000 Posts Photogenic Combo Breaker
I've been hearing a bit on the news about the proposed increase in car tax for the bigger "gas guzzling" vehicles in the budget this week.

I own, what is probably considered to be low to medium emission car - a 1.4 peugeot 206. Car tax last year was £100.

Seeing as I have to renew my car tax before the end of the month, I'm wondering if I should get the car taxed before the budget in case it goes up.

What are the chances of the rate decreasing for my a car with my engine size? :rolleyes:

I think the rate for my car is likely to stay the same. What do you think is going to happen?
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Comments

  • Hintza
    Hintza Posts: 19,420 Forumite
    10,000 Posts Combo Breaker
    Jet wrote: »
    I've been hearing a bit on the news about the proposed increase in car tax for the bigger "gas guzzling" vehicles in the budget this week.

    I own, what is probably considered to be low to medium emission car - a 1.4 peugeot 206. Car tax last year was £100.

    Seeing as I have to renew my car tax before the end of the month, I'm wondering if I should get the car taxed before the budget in case it goes up.

    What are the chances of the rate decreasing for my a car with my engine size? :rolleyes:

    I think the rate for my car is likely to stay the same. What do you think is going to happen?

    It waill have nothing to do with engine size directly but by emissions.

    I doubt it will go down...when do they ever go down!!

    But yours is probably marginal..it will be a case of you pays your money and takes a chance I would have thought.
  • 1882
    1882 Posts: 497 Forumite
    Part of the Furniture 100 Posts
    Mine went down last year - renewal notice before budget was £105 but budget reduced it to £100 before the expiry date at the end of march :)

    I've already renewed this years via the DVLA website and wonder what'd happen if it went up (would they debit my card with the extra?). On the other hand if it went down I suppose they would credit my card with the difference.
  • Jet
    Jet Posts: 1,649 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    1882 wrote: »
    Mine went down last year - renewal notice before budget was £105 but budget reduced it to £100 before the expiry date at the end of march :)

    I've already renewed this years via the DVLA website and wonder what'd happen if it went up (would they debit my card with the extra?). On the other hand if it went down I suppose they would credit my card with the difference.

    I used to work in a post office and if the tax goes up in the budget, we used to have to charge customers the new rate even if their renewal notice showed the old rate. ;)

    If it was the retail industry, they would have to "sell" the car tax at the advertised rate wouldn't they?
  • AP
    AP Posts: 412 Forumite
    100 Posts
    The amount you have to pay is the rate in force at the time of payment. So if you pay today - and probably up to 12.30pm tomorrow, you'll know exactly how much it is. After that, it may be higher or lower depending what car you've got.

    As a guess, if you are paying between £190 and £215 at the moment, get it taxed today. If you are paying just £30 to £40, wait until after tomorrow.
  • Careful_ly
    Careful_ly Posts: 622 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Its a gamble. Mine is £110 and I renewed it online yesterday, after my car had passed the MOT, I thought it more likely to go up than down, but who knows.
  • gazhawkins
    gazhawkins Posts: 236 Forumite
    Chances are the extra tax will go on Chelsea tractors and the like.

    What worries me is that the tax could be doubled on older vehicles (before the emissions regs came in). Mine is a 99 vehicle - so tax is 170 quid whether it's a full sized range rover or a 1.6 ford focus.

    Nobody ever mentions that the amount of energy (and CO2 emissions) required to manufacture a new car is absolutely staggering. Think about it - mining the ore, making the steel, transporting it, making the parts, transporting the parts, assembling the vehicle and transporting the vehicles.

    So taxing older vehicles does not reduce CO2 emissions necessarily.
  • livinginhope
    livinginhope Posts: 1,897 Forumite
    Debt-free and Proud!
    This has been on my mind all day,I have a 10 year old car,2.2 engine,at present the tax is £175,on the news they said the tax was going to double,would this be on the emissions system,or on the engine size?
    Debt at highest £102k :eek:
    Lightbulb moment march 2006
    Debt free october2017 :j
    Finally sleeping easy in my bed :A
  • gazhawkins
    gazhawkins Posts: 236 Forumite
    For cars built AFTER the car emissions taxation system came in: it will be based on emissions.

    For cars built BEFORE, it's a separate taxation class and will be dealt with separately.

    Who is to say whether the motorist's friend Gordon will double the car tax on old cars - to remove 'old polluting vehicles' off the road, reduce CO2 emissions, blah-blah-blah?

    If car tax and fuel tax were combined in the price of fuel, you wouldn't need all this complex, costly tax administration. The French have been doing this for years. Folks who drive fuel inefficient cars are charged accordingly - and everyone pays the fuel duty and VAT on fuel. How many drivers avoid car tax and insurance?
  • Jet
    Jet Posts: 1,649 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Well, I took the plunge and taxed my car today.

    I'll be on here tomorrow:cry: if the tax for my car goes down and :j if it goes up.
  • scheming_gypsy
    scheming_gypsy Posts: 18,410 Forumite
    if they double my insurance i'll run the b*stard over. I'm not dropping down to a 1litre granny mobile
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