Driving abroad in an ev after new tax is introduced

Richard436

I take my petrol car to France via the Eurotunnel and drive about 2,500 miles a year there. The fuel tax I pay in France goes to the French government, and when I return to the UK I don’t have to pay that tax again to the UK government.

So when the 3p-per-mile charge is introduced for electric vehicles, how will that work? Will I pay it once to the French government, as I do now with fuel tax, or will I also have to pay it to the UK government?

Peter999_2

It's currently only in a consultation phase.      Issues like these need to be thrashed out in the next three years - I wouldn't worry too much about it at the moment.

WellKnownSid

Despite being a consultation, most of the information I've seen is that driving abroad is considered an edge-case.  You'll therefore pay your £75 to the UK government when the time comes, along with the portion of UK car tax used up despite the car not being on British soil.

Bigphil1474

At the moment it sounds like you'll pay extra in the UK, but save on not paying while in France. Basically, no worse off. 

Grumpy_chap

Richard436 said:

I take my petrol car to France via the Eurotunnel and drive about 2,500 miles a year there. The fuel tax I pay in France goes to the French government, and when I return to the UK I don’t have to pay that tax again to the UK government.

So when the 3p-per-mile charge is introduced for electric vehicles, how will that work? Will I pay it once to the French government, as I do now with fuel tax, or will I also have to pay it to the UK government?

Obviously, and I think you got that, the 3 ppm won't apply while you have your petrol car.

Indications at present are that the 3 ppm will apply to all UK registered EVs regardless of where the mileage occurs.  There was some information about overseas mileage being sufficiently low overall that it is an acceptable anomaly.  The biggest challenge might be Northern Ireland in this respect.

There is a trade off between a simple system that is cheap to operate or a more complex model that requires capital infrastructure or tracking (which may mean privacy concerns are raised).

I, for one, don't want to pay a ppm charge that doesn't even fund the charge being collected.

MyRealNameToo

Grumpy_chap said:
I, for one, don't want to pay a ppm charge that doesn't even fund the charge being collected.

Other than NI unfortunately thats how all taxes and duties work these days. There is no connection between how governmental revenue is generated and how it is spent. 

LightFlare

I think all EVs will get pulled aside before leaving our shores and the odometer read and documented.

On re-entering, you get pulled aside and the odometer read again and one number subtracted from the other

You will then get 23 forms to fill in which will need to be submitted to 15 different departments when the tax man asks you for your contribution so that they can then send the relevant amount of money back to whichever country you were in.

Or something nothing like that — pointless to speculate

WellKnownSid

LightFlare said:

I think all EVs will get pulled aside before leaving our shores and the odometer read and documented.

On re-entering, you get pulled aside and the odometer read again and one number subtracted from the other

You will then get 23 forms to fill in which will need to be submitted to 15 different departments when the tax man asks you for your contribution so that they can then send the relevant amount of money back to whichever country you were in.

Or something nothing like that — pointless to speculate

You're right that there will be a double taxation element to this.

You'll be able to pay an accountant £100 + VAT to file a claim for your £75 EU usage back (£150 administration charge).  However, you'll then be liable to French weight-based fees (€43) and the handling cost (€275) plus the notary fee (€150).

born_again

Richard436 said:

I take my petrol car to France via the Eurotunnel and drive about 2,500 miles a year there. The fuel tax I pay in France goes to the French government, and when I return to the UK I don’t have to pay that tax again to the UK government.

So when the 3p-per-mile charge is introduced for electric vehicles, how will that work? Will I pay it once to the French government, as I do now with fuel tax, or will I also have to pay it to the UK government?

Look at it this way. You are paying far less to charge for the 2,500 miles than you would in the UK. So even after paying the 3ppm while in Europe. You are £££ in 👍

No all funds, as it appears at the moment will go to UK gov, as you only look to be reporting once a year. They will not want the complication of having to deduct mileage when not in the UK. Which would require a reporting system at customs (longer checks) & a new IT system.

DrEskimo

It's such needless complication - it would seem far easier and simpler to just increase VED for EVs with the average increase in this mileage payment (8,000*0.03 = £240), so EVs pay £435. Done (as someone who does higher than average I may be biased here though...).

It's a bit like the new cash ISA restriction - they are now trying to work out how to close 'loop holes' on this new imposed cash ISA limit, where certain S&S ISA accounts give interest on money held as cash...suddenly you have S&S ISA where certain money held in a certain way in a tax efficient account are now subject to tax...it's just ridiculous...

MyRealNameToo

LightFlare said:

I think all EVs will get pulled aside before leaving our shores and the odometer read and documented.

On re-entering, you get pulled aside and the odometer read again and one number subtracted from the other

You will then get 23 forms to fill in which will need to be submitted to 15 different departments when the tax man asks you for your contribution so that they can then send the relevant amount of money back to whichever country you were in.

Or something nothing like that — pointless to speculate

Imagine you are seeing something similar for when those in the Middle East fly in their hyper cars for cruising around Knightsbridge... have seen at least one electric one this year with non-UK plates. 

Reality will be that both cases are too marginal to worry about and it will just be UK registered cars taxed wherever the miles are driven.