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Road tax

Hi there

Looking at buying a second hand car and run it into the ground.

Looking at road tax for a 308. If it is registered before April 2017 the road tax is £30 but if registered after its £150.

That means cars registered just a few days apart will have a significantly different road tax bill (totalling £1200 over 10 years). Am I missing anything here?
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Comments

  • DrEskimo
    DrEskimo Posts: 2,463 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Nope, that's right. There were changes to VED in April 2017 that affected any car registered after that date.

    A quick Google search will give you all the information you need.
  • Thanks. Ive googled and read but I just wanted to make sure I wasn't missing something e.g. the government tapering up the pre 2017 tax rates over the coming years.
  • molerat
    molerat Posts: 35,072 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    With all the manufacturers managing to get their new cars into the £30 tax band the treasury were losing £Ms a year so had to move the goalposts to recoup that loss. And we are now in the same situation as many years ago where they all (with a few exceptions) cost the same irrespective of how much they kick out.
  • DrEskimo
    DrEskimo Posts: 2,463 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Thanks. Ive googled and read but I just wanted to make sure I wasn't missing something e.g. the government tapering up the pre 2017 tax rates over the coming years.

    It increases each year by about £5 I think, in line with inflation. This was the same with the old VED rates though.
  • This does seem a crazy tax setup and they will probably change at some point it but I'll work off what's infront of me and get a pre april 2017 reg car.
  • DrEskimo
    DrEskimo Posts: 2,463 Forumite
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    edited 25 January 2020 at 5:33PM
    This does seem a crazy tax setup and they will probably change at some point it but I'll work off what's infront of me and get a pre april 2017 reg car.

    Changes won't affect cars retrospectively. It would only be a concern if you were looking to buy a new car in April, and there were changes in April.

    Or you could look at a used EV (with an original list price of <£40k) and pay £0. It was nice having to renew my VED this month for the first time!
  • DrEskimo wrote: »
    It increases each year by about £5 I think, in line with inflation. This was the same with the old VED rates though.

    I've just checked my two old Hyundia i10's and they're still at £30 & £20 tax respectively so there's been no increase in road tax from that period. (08 & 63 plates)
  • Car_54
    Car_54 Posts: 8,947 Forumite
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    DrEskimo wrote: »
    Changes won't affect cars retrospectively.
    Of course. Politicians never lie.
  • born_again
    born_again Posts: 21,566 Forumite
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    edited 25 January 2020 at 7:29PM
    DrEskimo wrote: »
    Or you could look at a used EV (with an original list price of <£40k) and pay £0. It was nice having to renew my VED this month for the first time!


    Don't bank on EV staying at zero.
    I-O-M are going to charge £16 a year. Due to the loss of VED.

    So expect UK to follow soon.:rotfl:
    Life in the slow lane
  • DrEskimo
    DrEskimo Posts: 2,463 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    I've just checked my two old Hyundia i10's and they're still at £30 & £20 tax respectively so there's been no increase in road tax from that period. (08 & 63 plates)

    That's because inflation on £30 would be about 90p. VED brackets tend to be rounded to the nearest £5. It's only around band D did you see increases year on year.
    born_again wrote: »
    Don't bank on EV staying at zero.
    I-O-M are going to charge £16 a year. Due to the loss of VED.

    So expect UK to follow soon.:rotfl:

    Not all EV's are zero. Any EV over £40k RRP is paying £320 for years 1-5.

    I fully expect EV will be charged at some point, which is precisely why I am driving one now!
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