EV pay per mile - disabled drivers

born_again

ComicGeek said:

Goudy said:

MattMattMattUK said:

There is no need to introduce a new tax for EVs, just increase fuel duty for a short term boost and in the long term use funds raised from general taxation. 

It won't be long before the state pension increases past the tax free earning limit, so now "granny" on a state pension will share the burden while someone floats around it a £100,000 Audi e-tron for free?

But you conveniently forget that they would have paid over £17k in VAT for that £100k EV when purchased....

EVs cost more to buy in the first place, so surely the extra VAT paid (against the price uplift compared to ICEs) is more than the proposed mileage revenue. The Govt don't seem to provide a break down of VAT revenue, but surely this must be significant.

Not forgetting the annual VED & expensive car supplement//

Ectophile

born_again said:

Grumpy_chap said:

Herzlos said:

Traditionally big tax changes have never been retrospective either; we've already got completely different VED mechanisms for cars before 2001, 2001-2017 and 2017 onward. 

Except that has been ignored for EVs, which originally had zero VED and now have the standard rate applied retrospectively.

Electric, zero or low emission cars registered between 1 March 2001 and 31 March 2017

The tax rate for these vehicles is £20.

So not the std £195 🤷‍♀️

EVs registered after March 2017 were charged £0 tax when sold.  The government suddenly increased this to £195 this year.

Herzlos

Didn't they essentially just change the bottom band for emissions (<100g/km) from £0 to £20 across the board? I think it impacted some eco combustion cars too. 

So it wasn't really a change with how the tax was administered. 

Edit: Yup, RAC says:

"Since 2025 VED rule changes, cars with CO2 emissions below 100g/km no longer qualify for free road tax. This means you now have to pay £20 a year for VED if your car emits up to 100g/km of CO2. "

Grumpy_chap

born_again said:

Grumpy_chap said:

Herzlos said:

Traditionally big tax changes have never been retrospective either; we've already got completely different VED mechanisms for cars before 2001, 2001-2017 and 2017 onward. 

Except that has been ignored for EVs, which originally had zero VED and now have the standard rate applied retrospectively.

Electric, zero or low emission cars registered between 1 March 2001 and 31 March 2017

The tax rate for these vehicles is £20.

So not the std £195 🤷‍♀️

But that was a retrospective application.

These EVs were initially zero rated for VED and then got put up to the standard VED for the year.  It creates the anomaly that my EV now pays more VED than my wife's Fiesta.

Hence, the statement that "tax changes have never been retrospective" is incorrect.