New goverment car tax rules from April 2017. Your thoughts?

AdrianC

Herzlos wrote: »

I wonder if we're going to start seeing a lot of after-market dealer fitted features on cars around the threshold?

Would be easy enough to deal with lots of bolt-on changes after delivery (but before collection), like upgraded wheels, brake discs, head units, and so on.

Unlikely, I think. It'd be requiring a big change in the way the manufacturers work, for a small wrinkle of one relatively small market. It's not impossible - I seem to remember that leather interior was a dealer-fit option on Rover 400s in the mid '90s. But it's really just to save £1,500 in VED over five years. How many of those first owners are even keeping the car for all five years?

Pincher

Mitsubishi Outlander PHEV, registered in March 2016.
It's 42gm/km, according to the V5C, so £0 VED anyway, under the existing system.

The car was £42k before the £5,000 subsidy, so I actually paid £37k, but I think they look at the list price, and so is over £40k.

The gov.uk said the VED was due, 1st March 2017, even though it was £0. Just to be safe, I "applied" to pay, and it accepted the application, giving a reference number, and a confirmation e-mail.

The system will say the VED is due on 1st March 2018.
The niggling doubt is, will it say I owe £310 for 2018/19?

I am interpreting the rules as meaning £40k+ cars registered before 1st April 2017 do not pay the £310 supplement. Renewing before 1st April 2017 doesn't prove anything, though, because I am simply paying under the existing system.

If I'm lucky, it's £0 forever. :j


If I buy one year later, it's £450 VED a year. :eek:

AdrianC

Pincher wrote: »

The niggling doubt is, will it say I owe £310 for 2018/19?

No, because the changes only come in for brand spankin' new vehicles first registered after this April.

The same as the 2001 and 2006 changes didn't affect vehicles already registered.

Pincher

AdrianC wrote: »

No, because the changes only come in for brand spankin' new vehicles first registered after this April.

The same as the 2001 and 2006 changes didn't affect vehicles already registered.

Praise the lord, Halleluyah!

£0 VED forever.
The PHEV came with a five year warranty, as well. :money:

AdrianC

Pincher wrote: »

Praise the lord, Halleluyah!

£0 VED forever.

Not necessarily...

It'll always (well, maybe... until a future rejig, perhaps) in the <100g CO2 Band A (2001-2017) for VED, but that doesn't mean it'll always be £0.

kmb500

Vehicle tax should be based on the value of the vehicle, not arbitrary emissions rules. In every other aspect of life, tax brackets are determined by monetary values. They should make it like council tax where the amount you pay is based on the value of the product (be it a house or a car).


1. people with the same amount of money can be paying different amounts of tax
2. it is not the governments place to mandate what people should or should not buy. Either make it illegal or leave people alone.

AdrianC

kmb500 wrote: »

They should make it like council tax where the amount you pay is based on the value of the product (be it a house or a car).

...hypothecated back to 1990 values, and completely ignoring any depreciation over time...

it is not the governments place to mandate what people should or should not buy.

Actually, yes, it IS the job of the government to use taxation as an encouragement to socially-desirable behaviour and consumption habits...

buglawton

kmb500 wrote: »

Vehicle tax should be based on the value of the vehicle, not arbitrary emissions rules. In every other aspect of life, tax brackets are determined by monetary values. They should make it like council tax where the amount you pay is based on the value of the product (be it a house or a car).

1. people with the same amount of money can be paying different amounts of tax
2. it is not the governments place to mandate what people should or should not buy. Either make it illegal or leave people alone.

The new rules will be somewhat linked to car value - that £40k cliff edge. And so is Stamp Duty, but in such a crazy way that it cheaper to buy a neighbours flat and knock through rather than move to upsize.

A revamp and simplification of most UK taxes would make the UK a more efficient and productive place. But MPs are allergic to that.

Jackmydad

All taxes should be simplified so that I don't have to pay any at all! :rotfl:

[Deleted User]

I can see them doubling the £20 & £30 tax bands no doubt.