We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Road Tax

2

Comments

  • tryin
    tryin Posts: 377 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    Nasqueron wrote: »
    The 1937 date was just when the system of using the tax exclusively for roads (in name anyway) was ended and when the money started going direct to the exchequer as it does now. The reason that "road tax" should be corrected is that it wrongly implies the money is a fund for building/maintaining roads which gives morons an excuse to have a go at cyclists because of course there is no VED applied to bikes as the bike doesn't emit any CO2.
    At the end of the day the costs of building and maintaining roads is higher than what we pay in road tax, so we can't really complain. (But of course we will anyway :)
  • Car_54
    Car_54 Posts: 8,944 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    tryin wrote: »
    At the end of the day the costs of building and maintaining roads is higher than what we pay in road tax, so we can't really complain. (But of course we will anyway :)
    Why should anyone complain, or otherwise?



    As already explained (ad nauseam), the two are not connected in any way shape or form.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    Marvel1 wrote: »
    When people mention about cyclists not paying, i just provide them a link and say what about cars registered 2001 (ithink) to 31st March 2007 with CO2 below 100 paying £0.00 - they never have an answer though ;)


    My (petrol) car was registered in October 2015 and my VED is £0, so I think your dates may be a bit restrictive.
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Nasqueron wrote: »
    The road tax program was actually effectively abolished in the 1920s as the road fund that the taxes went to was not really being used for road building (mostly just resurfacing) and was routinely robbed by other departments anyway. The 1937 date was just when the system of using the tax exclusively for roads (in name anyway) was ended and when the money started going direct to the exchequer as it does now. The reason that "road tax" should be corrected is that it wrongly implies the money is a fund for building/maintaining roads which gives morons an excuse to have a go at cyclists because of course there is no VED applied to bikes as the bike doesn't emit any CO2.

    Taxes aren't named after what the collected funds are spent on though.

    Inheritance tax, income tax, corporation tax, capital gains tax etc. Its usually named (in some way) after the cause of the tax.
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • Car_54
    Car_54 Posts: 8,944 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Taxes aren't named after what the collected funds are spent on though.

    Inheritance tax, income tax, corporation tax, capital gains tax etc. Its usually named (in some way) after the cause of the tax.


    That's why it's not called road tax. It's Vehicle Excise Duty.
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Car_54 wrote: »
    That's why it's not called road tax. It's Vehicle Excise Duty.

    Yes, but its still nothing to do with what it was spent on - which was my point. Thats why my post said that rather than saying it is road tax.

    The gov actually refer to it as "vehicle tax" on their website ;)
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • Nasqueron
    Nasqueron Posts: 11,054 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Yes, but its still nothing to do with what it was spent on - which was my point. Thats why my post said that rather than saying it is road tax.

    The gov actually refer to it as "vehicle tax" on their website ;)


    When road tax (road fund) was setup it was designed for use on building roads, it was robbed by other departments hence the point that it was abolished in 1937 which was the point the law changed so that the money from motorists was no longer officially ring fenced for roads and started going to the government just like VAT, PAYE etc etc. Road tax is incorrect because it's not a tax on using the road, it's not a tax for road building, road repair etc

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • Johno100
    Johno100 Posts: 5,259 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    tryin wrote: »
    At the end of the day the costs of building and maintaining roads is higher than what we pay in road tax, so we can't really complain. (But of course we will anyway :)

    But Vehicle Tax is just one of the taxes paid by motorists. There's tax and duty on fuel, VAT on new vehicles, parts and repairs. IRC only about a third of motor taxes is reinvested in building and maintaining roads.
    Nasqueron wrote: »
    When road tax (road fund) was setup it was designed for use on building roads, it was robbed by other departments hence the point that it was abolished in 1937 which was the point the law changed so that the money from motorists was no longer officially ring fenced for roads and started going to the government just like VAT, PAYE etc etc. Road tax is incorrect because it's not a tax on using the road, it's not a tax for road building, road repair etc

    However that is due to change next year when VED is again going to ringfenced and will go into a new Roads Fund.

    http://www.infrastructure-intelligence.com/article/jul-2015/budget-vehicle-tax-all-be-spent-roads-2020
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Nasqueron wrote: »
    When road tax (road fund) was setup it was designed for use on building roads, it was robbed by other departments hence the point that it was abolished in 1937 which was the point the law changed so that the money from motorists was no longer officially ring fenced for roads and started going to the government just like VAT, PAYE etc etc. Road tax is incorrect because it's not a tax on using the road, it's not a tax for road building, road repair etc

    Technically, it is - but only for registered vehicles that aren't exempt. Just as some other taxes are selective rather than blanket.
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • KaiserBill
    KaiserBill Posts: 125 Forumite
    Seventh Anniversary Combo Breaker
    Duty.

    The Cambridge Dictionary.

    " duty, a TAX paid to the government "
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.