VED Road Tax from April 2017 onward - be prepared

[Zak33]

Hi all

Many of you won't know about this yet, but from April next year FOR NEW CARS onward (not cars already on the road) the tax system changes

The initial road tax will cost a lump and then onward it will be exactly the same for every car (except zero emmissions and cars over £40k new list price)

http://www.autoexpress.co.uk/car-new...ut-uk-road-tax

A new small lowish CO2 car will actually cost more to run over 4 or 5 years after the changes as the road tax is the same per year as the larger CO2 cars.
But the INITIAL lump payment is lower than high CO2 cars

weirdly, if you keep your car from NEW to about 6 or 7 years, you'll be ok if you buy a car pumping out 200+gm/km, AS LONG AS IT HAD A LIST PRICE UNDER £40k


read it and weep people

[CAT-THE-FIFTH]

Moar SUVs on the road!!

[directhex]

Looks like a measure to curb the adoption of PHEVs over BEVs? An Outlander PHEV which never gets plugged in is taxed the same as an Aygo, under the old rules.

Similarly, as of April 2020, the BIK rates are changing massively to punish cars that aren't pure battery (right now a Leaf pays the same BIK rate as a low-emissions petrol or an Outlander PHEV)

[DanceswithUnix]

So looking at a petrol Alfa Giulia 2.0 it would cost an extra £70 in the first year (£130 becomes £200) and then an extra tenner (£130 to £140) every year after that. Even with plenty of options it would sneak in under £40000, so no extra payment.

We all knew that the current tax incentives for low emissions cars wasn't sustainable (ironically) so we probably got off fairly lightly here.

When driving a new car off the forecourt probably loses you £3000, if you can't afford the extra tenner per year you are probably doing the car thing wrong.

[Dashers]

Wow, that's expensive.

I'm paying £295 at the moment, but that would be £450 (plus the £1200 new car fine) if I had bought my car next year.

Late 2016 early 2017 models are going to hold their value a bit better I think!

[kalniel]

Good. We need to get away from the idea of taxing cars based on unrealistic CO2 outputs - that's already much more accurately covered by fuel duty - drive more economically, pay less in fuel duty. Simple.

[Ttaskmaster]

So a (hypothetical) 2017 mkIV Golf 1.9 GT TDi, currently under 150g/km and paying £145.... will now have to pay £200 in 2017 and then a flat rate £140 thereafter?
While my Mrs in a 2017 Honda CR-V will have to go from current £300 to £800 and then either £720 or the flat £140, depending on which of Auto-Express's articles you read?

Seriously, their link to Guide To Road Tax Bands has a table that suggests everything incurs a flat rate after year 1...

Also - "Cars above £40,000 pay £310 annual supplement for five years".... WHY???!!!
Surely anyone spending Forty Grand on an ultra-green vehicle actually deserves a bit of a tax break?


I dread to think what they're doing for motorcycles....!!

[DanceswithUnix]

Surely anyone spending Forty Grand on an ultra-green vehicle actually deserves a bit of a tax break?

They do, they get a £310 bill rather than £450 for the first five years, then they pay nothing.

Interesting that new cars are penalised so hard, a five year old plus big Jag or Bentley starts to look quite nice at £140 per year tax

[Ttaskmaster]

Oh, they're paying more already?
.....insanity......!!!

[kalniel]

Interesting that new cars are penalised so hard, a five year old plus big Jag or Bentley starts to look quite nice at £140 per year tax

Absolutely. Having a muscle car for the weekend suddenly seems to be encouraged

[Xlucine]

It'll be nice to see less i8's on the roads, they always were a bit of tat to get through a loophole without actually polluting less

[directhex]

It'll be nice to see less i8's on the roads, they always were a bit of tat to get through a loophole without actually polluting less

Kinda funny how well it sold (e.g. more of them in the UK than the Ampera)

They already lost their £5k government subsidy a year or two ago

[EndlessWaves]

The old system was laughable because it encourages manufacturers to cheat on easily manipulated tests.

So you were only supposed to pay less than £110 a month if your car averaged 55mpg petrol or 62mpg diesel.

The costs for the majority of popular cars are much the same as they'd be if they'd actually enforced the old system based on what the car emitted in real life.

Small cars will lose out, but encouraging their electrification is no bad thing.

[Dashers]

I suspect it would be more progressive to crank up the VAT rate on (new) cars (so people buying expensive cars proportionally pay more). Scrap road-tax and add even it out on fuel tax for the time being.

If the idea of course is to promote emission-free motoring.

Obviously, it'd have to change again once combustion starts to slip down the popularity scale. Still, as an early adopter, I'm enjoying my tax-free electric motoring.

[badass]

So a (hypothetical) 2017 mkIV Golf 1.9 GT TDi, currently under 150g/km and paying £145.... will now have to pay £200 in 2017 and then a flat rate £140 thereafter?
While my Mrs in a 2017 Honda CR-V will have to go from current £300 to £800 and then either £720 or the flat £140, depending on which of Auto-Express's articles you read?

Seriously, their link to Guide To Road Tax Bands has a table that suggests everything incurs a flat rate after year 1...

Also - "Cars above £40,000 pay £310 annual supplement for five years".... WHY???!!!
Surely anyone spending Forty Grand on an ultra-green vehicle actually deserves a bit of a tax break?


I dread to think what they're doing for motorcycles....!!

I think £310 per year will be a rounding error on the depreciation on a £40,000 car. It's just another way of taxing the rich. Fairer than some of the offensively high marginal rates on income tax as you have the choice to pay this tax.

[Spud1]

This seemed a strange decision for the government to take when first announced, and it's still just as strange now. To me, it's simply a massive disincentive to buy new cars - which are very likely to be more fuel efficient and better for the environment than most second hand cars. It seems odd to target both the cheap (but low Co2) and expensive (but low Co2) cars too, whilst leaving those in the middle relatively unaffected..I don't get it.

It will make a difference at whatever level you are buying a car - clearly at the lower end it could be a make or break for many people, but even at the more expensive end it can blow the budget very quickly and mean discounts are harder to obtain, which can really affect the finance options you can consider.

Personally i'd rather scrap it already and move to road pricing, but thats got a whole host of other issues to solve