New VED from April 2017

frugal90

Apparently most of us will be paying £140 per year from April 2017 even if it's ma Panda or a Porsche. Only exempt cars will be zero m emission- cars with a new price of £40 k will pay extra for furst 5 years.

Is this not a really backward step - then current graduated system works well?

Can we start a Martins Money Road Tax campaign please as I believe this is such a backward step . If the chancellor needs to raise more revenue then change the bandings but still incentivise the least polluting or add it to the price of petrol.

Bonkers

frugal

angel_of_dartford

This will only apply to cars registered after April 2017:
This measure reforms Vehicle Excise Duty (VED) for cars registered from 1 April 2017 onwards. First Year Rates of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle. A flat Standard Rate (SR) of £140 will apply in all subsequent years, except for zero emission cars which will pay £0. Cars with a list price in excess of £40,000 will incur a supplement of £310 on their SR for the first 5 years in which a SR is paid. All cars registered before 1 April 2017 will remain in the current VED system, which will not change.

marlot

frugal90 wrote: »

Is this not a really backward step - then current graduated system works well?

...or add it to the price of petrol.

1. Not a backward step at all - manufacturers were gaming the tests too much, and lots of cars were apparently getting mega-high MPGs. As the subsequent VW fracas shows

2. It only applies to new cars after APril 2017

3. A significant amount tax is already collected through fuel - so we're taxed on both ownership and usage.

4. There is a mechanism to charge extra for premium cars from new

It was the old system that was bonkers. Perfectly good cars were being scrapped because their tax was 'too high' - when they could have served a useful purpose for years more.

Norman_Castle

frugal90 wrote: »

Can we start a Martins Money Road Tax campaign please as I believe this is such a backward step .

Martins Money VED campaign would be less backward.

Iceweasel

AFAIK there are only 10 vehicles for sale in the UK that have zero emissions - and 2 of them are vans.

One of them has only one seat, and two of them have only 2 seats.

So that leaves a choice of only a very few if you want something that looks approximately like a 'real' car with £0 VED

All vehicles registered before 1st April will continue with VED rates as now.

I foresee increased car sales in March 2017.

Nasqueron

Road Tax doesn't exist

As above posts, this is not retrospective, only for cars registered after that point, the Government (of all flavours) want to lower CO2 emissions, encouraging people to get lower emission cars then realise their income is dropping due to VED going down (my old 2 litre 90bhp diesel was £165 a year, my new 2.2 litre 150bhp diesel is £20 a year) so had to come up with a new way of doing it.

There may be more zero emission cars by 2017 - more electric / hydrogen if the investment gets in.

The new VED is mean to be going on road investment but will that replace road repair from council tax or will it just be on motorways? I am curious as the rants I see as a cyclist about people paying "road tax" implying they pay to use the road are obviously nonsense, but if the new VED goes just on motorways which bikes can't use then it doesn't make any difference

derrick

Nasqueron wrote: »

Road Tax doesn't exist

Until the authorities stop calling it tax, then Joe public will continue to do so.

From Government website:
"Get vehicle tax for your vehicle.
Paying for vehicle tax by Direct Debit"

"Tax your vehicle"

At the moment it is called VED,it has been called various names over the years, but let's face it, it's a tax that, coupled with other taxes from motorists more than pays for the roads, (approx £50 billion in taxes from UK motorists but only around £10 billion spent on the roads).

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martinsurrey

derrick wrote: »

Until the authorities stop calling it tax, then Joe public will continue to do so.

From Government website:
"Get vehicle tax for your vehicle.
Paying for vehicle tax by Direct Debit"

"Tax your vehicle"

At the moment it is called VED,it has been called various names over the years, but let's face it, it's a tax that, coupled with other taxes from motorists more than pays for the roads, (approx £50 billion in taxes from UK motorists but only around £10 billion spent on the roads).

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Its not the tax bit that they were commenting on, its the road bit (which your links support).

Currently its used as general gov funds.

Johno100

Nasqueron wrote: »

The new VED is mean to be going on road investment but will that replace road repair from council tax or will it just be on motorways? I am curious as the rants I see as a cyclist about people paying "road tax" implying they pay to use the road are obviously nonsense, but if the new VED goes just on motorways which bikes can't use then it doesn't make any difference

You are missing all those major A roads that are the responsibility of the Highways Agency.



And cyclists are slowly been banned from a number of these roads.

http://www.gazettelive.co.uk/news/teesside-news/cyclists-banned-stretch-a19-after-9719544

Iceweasel

It's also not clear what the UK government are going to do with the money raised from the new duty.

People are thinking that it will be spent on the 'Nations Roads' - but which nation? And exactly which roads?

The Chancellor promised (politicians' promises are worthless) that from 2020 all the money would go on England's road structure.

This is taken from an MSE article in July:

New 'Roads Fund' for England

In addition Osborne has also announced that from 2020, every single penny raised from the tax people pay on their cars in England will go towards a fund to pay for "sustained investment our roads so badly need".

So money raised in England will go to fix the roads in England. Elsewhere in the UK, Osborne says the Government will need to "engage with the Devolved Administrations on how the money is allocated there".

Currently, Northern Ireland, Scotland and Wales have the responsibility of funding road works in their own country and they have to work out how to spend money granted from the central UK government.

This leads to another messy can of worms where nothing is clear.

The whole article is here:

http://www.moneysavingexpert.com/news/travel/2015/07/summer-budget-2015-fuel-duty-and-road-tax-road-tax-rates-to-be-changed-for-new-car-owners

derrick

martinsurrey wrote: »

Its not the tax bit that they were commenting on, its the road bit (which your links support).

Currently its used as general gov funds.

Yes I know, but some people still say, "Road Tax doesn't exist", but strictly speaking it does, it is just now called VED, ( but not by all authorities), untill they decide to change the name again,

It was only last year that DVLA/GOV.UK where still calling the windscreen disc a Tax Disc, they still do so in relation to that piece of paper HERE for example:-

"Tax discs are no longer needed - the vehicle tax could be up to date even if it doesn’t have a tax disc."
"... if it’s taxed but not showing the tax disc. Only report a vehicle that’s either untaxed or..."

So again, until the authorities stop calling it "Road Tax/Vehicle Tax" it will still be seen,(quite rightly in my opinion), as TAX by Joe Public, after all it IS a TAX!

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