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New Car Tax Rules..... Scam?

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Comments

  • molerat
    molerat Posts: 34,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 16 April 2015 at 7:52PM
    marlot wrote: »
    At the same time, as the new scheme came into effect, the government reduced the additional premium for buying 6 months tax from 10% to 5%. I don't hear so many people moaning about that! ........
    Only if paying by direct debit. If you pay by cash or card you still pay the 10%.

    If you buy a used/pre reg car that has first year £0 tax within that first year you have to then pay the normal tax for it even if only a month old.

    About time they did away with it and put the cost onto fuel, truly green then, those that pollute pay for it without pandering to the car manufacturer lobby.
  • facade
    facade Posts: 7,717 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    SailorSam wrote: »
    Perhaps not a scam but certainly a Tory stealth tax.

    You know, some years ago I thought we had a Coalition Government, that involved someone else. I havent heard anything from him or his people for years, is he still alive? :)
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science ;))
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    molerat wrote: »
    About time they did away with it and put the cost onto fuel, truly green then.
    It'd work out about 12p/litre, on average. That would hit manufacturing and logistics businesses VERY hard, and they're already struggling. So, yes, you could introduce some kind of a subsidy for them. Which would have to be funded from raising the duty on fuel even further - quite likely doubling it.

    £20m/year or whatever is barely pocket change in the national finances. That kind of gain or loss is regarded as being roughly evens when it comes to changes to taxation schemes. It's close to £1 in every £2,000 raised by VED, fuel duty and the VAT on fuel. ~£40bn total, out of the ~£700bn total the gov't receives from all taxation sources. It's about 50p per vehicle on Britain's roads every year...
  • Joe_Horner
    Joe_Horner Posts: 4,895 Forumite
    Ninth Anniversary Combo Breaker
    facade wrote: »
    You know, some years ago I thought we had a Coalition Government, that involved someone else. I havent heard anything from him or his people for years, is he still alive? :)

    Yeah, he was quoted a few days ago saying that, if they form another coalition, they'd "fight tooth and nail" for their core principles. Wonder why we should believe it's different this time round?
  • Car_54
    Car_54 Posts: 8,928 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Joe_Horner wrote: »

    These are honest, very hard working, people doing their best to not be a drain on society but society seems to discount the fact that they even exist when doing this sort of thing.

    These honest, very hard working, people - who have to drive gas-guzzlers through no fault of their own - will be "ripped-off" for an average of £8 rather than £4.

    Not really the stuff of which revolutions are made>
  • Joe_Horner
    Joe_Horner Posts: 4,895 Forumite
    Ninth Anniversary Combo Breaker
    AdrianC wrote: »

    £20m/year or whatever is barely pocket change in the national finances. That kind of gain or loss is regarded as being roughly evens when it comes to changes to taxation schemes. It's close to £1 in every £2,000 raised by VED, fuel duty and the VAT on fuel. ~£40bn total, out of the ~£700bn total the gov't receives from all taxation sources. It's about 50p per vehicle on Britain's roads every year...

    In which case they could easily afford to do my suggestion of holding the tax until the end of the month of sale - they'd lose roughly nothing but would help an awful lot of people who could really use it just a little bit. Win-win in my books!
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    I wonder how much these people have to pay to change their insurance over to their newly acquired car, on average?
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Joe_Horner wrote: »
    In which case they could easily afford to do my suggestion of holding the tax until the end of the month of sale - they'd lose roughly nothing but would help an awful lot of people who could really use it just a little bit. Win-win in my books!

    Again, modifications - although not so major - would be needed to the tax IT, and you'd have a massive disparity where you can't buy new tax for all but the last two days, unless you claim it's a keeper change, when you can do it all month.
  • Joe_Horner
    Joe_Horner Posts: 4,895 Forumite
    Ninth Anniversary Combo Breaker
    No modifications needed apart from ones they made anyway to automatically cancel tax when a keeper change is received.

    The only difference would be that the date of "untaxing" when a change of keeper is notified would be treated as the end of that month rather than the beginning.

    Refunds would work the same because that's the date they refund from anyway, and you could re-tax before it expired just like you can with a car you already own.
  • tony6403
    tony6403 Posts: 1,257 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 17 April 2015 at 12:19AM
    The whole car tax system is bonkers.
    Things like TV licences , broadband ,mobile phone contracts, car insurance , house insurance , guarantees ( all sold in their multi-millions ) have IT systems which relate to specific dates. So should car tax.
    With the pursuit of low emissions from vehicles, the tax incentives ( my main car is zero road tax ) are not sustainable. Car manufacturers are doing an excellent job in cleaning up exhaust fumes and the tax take will suffer. A hike will have to happen.
    I have a half share in a 43 year old Triumph Vitesse which must be off the scale for pollution - it is however exempt from road tax. I'm obviously happy to not to be paying anything but where is the logic?
    Forgotten but not gone.
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