Nov 17th Budget - Tax impact for EVs

[siteguru]

VED changes are never retrospective ... they either start from the date of the announcement or from the following April; they never apply for VED already paid. (Even if the VED paid was £0).

 

[amdmad]

Will it be the same as some
Diesel cars £30 ??

 

[Ian Key]

I think the review date is 2025 so he probably won't bring it in until then but even so at £30 it's still less than the £165 I've just paid.

 

[siteguru]

@amdmad Who knows? (Well, you'd expect that the Chancellor does, and perhaps also the PM and some others, but Joe Public isn't going to know until after the statement).

 

[Macadoodle]

VED changes are never retrospective ... they either start from the date of the announcement or from the following April; they never apply for VED already paid. (Even if the VED paid was £0).

On a selfish note, I'm hoping its April as I'll have my car well before then - in theory
Seems likely it'll correspond with the 23 plates, gets difficult to administer otherwise.

 

[siteguru]

On a selfish note, I'm hoping its April as I'll have my car well before then - in theory
Seems likely it'll correspond with the 23 plates, gets difficult to administer otherwise.

23 plates start 01-March-23

 

[Macadoodle]

I think the review date is 2025 so he probably won't bring it in until then but even so at £30 it's still less than the £165 I've just paid.

£30 is bugger all of course, paid that on a Focus TDI I had a few years ago. Problem is it'll be the start of the slippery slope to serious money no doubt.
Road pricing per mile travelled is a bigger threat on the horizon I would imagine, quite how they'll make it work I'm not sure, but various governments have been toying with the idea for years.

 

[NoSkill]

It won't be £30, that's the (now) 'old' system, as of 2017 the VED rate for the first year is CO2 emissions related but after that it's a flat £165 for any car other than EVs, with an extra £355 for cars with a list price over £40,000.

From the leaks it seems that post-2025 EVs will be included in that so paying ~£165 (it'll go up before then no doubt). The question is whether that applies to cars sold before 2025 or not... I suspect it will but can't be sure until Thursday.

 

[Macadoodle]

23 plates start 01-March-23

Ah yes, true. Was muddling it with the VED rate changes which usually apply from April

 

[4ND]

Soaring energy/electric prices, cessation of 'free' (as in tax payer funded) home chargers and most EV 'grants' (grant as in tax payer funded), plus VED on the electric horizon. Those wanting to 'convert' may not be so keen now.

Eventually they may too suffer the 'premium supplement' of £335 or so for a car over £40K.....and given so many electric cars are prohibitively expensive, even more pricing out of the market.

 

[siteguru]

It won't be £30, that's the (now) 'old' system, as of 2017 the VED rate for the first year is CO2 emissions related but after that it's a flat £165 for any car other than EVs, with an extra £355 for cars with a list price over £40,000.

From the leaks it seems that post-2025 EVs will be included in that so paying ~£165 (it'll go up before then no doubt). The question is whether that applies to cars sold before 2025 or not... I suspect it will but can't be sure until Thursday.

Well the change to the new system wasn't retrospective (AFAIAA .. I've not actually paid any VED for years as it's included with my company car) - but government departments are a law unto themselves.

 

[NoSkill]

Well the change to the new system wasn't retrospective (AFAIAA .. I've not actually paid any VED for years as it's included with my company car) - but government departments are a law unto themselves.

True, and maybe I'm just being pessimistic given that the government seem to be going all-in on money grabbing this budget, hopefully I'm wrong

 

[Thorpey]

I'm hoping any change is linked to a new plate. I'm not aware of any VED change being implemented with immediate effect. My car is ready now and being collected on Saturday, I'm tempted to ask them to register it Wednesday just in case!

 

[Lovemyev]

Sorry folks, but am I missing something here ??.
CURRENTLY, we pay duty on our cars, on the level of CO/2 that it omits from its exhaust.
As pure EV's are still ZERO emission, unless they completely revise this system and move away from an emission based standard, how do you apply a fee to electric cars ???.
As we all know, the government have ( on many occasions ) realigned the permitted co/2 levels and tax banded cars to raise more funds, for identical cars still being produced with the same CO/2 output.
Case in point, I owned a WV PHEV back in 2015 and the duty was zero, 18 months latter they revised the omission level and charged new owners for duty.
Same power unit, same emission figures etc, but now due to the band switching, they pay duty.
My wife has a Fiat 500 ICE and we pay £20 duty for 12 months.
Fiat are STILL producing the same car with the same power plant and the same emission figures.
Duty is now about £135.00 - How does that work ????.
They make the rules then break them, in order to take in more money.
No change there then !.

 

[BrenEV]

Sorry folks, but am I missing something here ??.
CURRENTLY, we pay duty on our cars, on the level of CO/2 that it omits from its exhaust.
As pure EV's are still ZERO emission, unless they completely revise this system and move away from an emission based standard, how do you apply a fee to electric cars ???.
As we all know, the government have ( on many occasions ) realigned the permitted co/2 levels and tax banded cars to raise more funds, for identical cars still being produced with the same CO/2 output.
Case in point, I owned a WV PHEV back in 2015 and the duty was zero, 18 months latter they revised the omission level and charged new owners for duty.
Same power unit, same emission figures etc, but now due to the band switching, they pay duty.
My wife has a Fiat 500 ICE and we pay £20 duty for 12 months.
Fiat are STILL producing the same car with the same power plant and the same emission figures.
Duty is now about £135.00 - How does that work ????.
They make the rules then break them, in order to take in more money.
No change there then !.

It’s fairly simple surely, you just introduce a lower flat rate for any car which has zero emissions.

It’s fair in my eyes. We need the tax income to pay for the services we all use in society, as EV use increases it’s logical that they would be taxed at some point. They can’t just lose that tax income.

 

[Lovemyev]

It’s fairly simple surely, you just introduce a lower flat rate for any car which has zero emissions.

Although I agree that lost funds need to be raised from somewhere, we have to remember it was the government who introduced this duty based on exhaust emissions, which is a worth while cause.
Until they discover how much revenue they are now gifting to EV drivers and now want to move the goal posts.
I just fail to see how you can suddenly charge a duty fee, on EV’s without changing the present system of duty pricing set against measuring CO/2 emissions on cars ?.
We currently pay £20 duty on my wife’s six year old Fiat 500 fossil.
Being asked to pay the same £20 flat rate duty, as you call it, on a zero emission vehicle is absolutely crazy !.
A much fairer system, would be one that is set by usage.
Example :-
If you are a OAP and only use your car once a week, to do your shopping trip, then your duty charges are going to be in line with your road usage.
If on the other hand you are using the roads day in, day out and covering huge mileages every year, surely then you should be expected to pay more that the person using his car once a week ?.

 

[siteguru]

and now want to move the goal posts.

Finally someone uses the correct term!

 

[Paulie68]

Sorry folks, but am I missing something here ??.
CURRENTLY, we pay duty on our cars, on the level of CO/2 that it omits from its exhaust.
As pure EV's are still ZERO emission, unless they completely revise this system and move away from an emission based standard, how do you apply a fee to electric cars ???.
As we all know, the government have ( on many occasions ) realigned the permitted co/2 levels and tax banded cars to raise more funds, for identical cars still being produced with the same CO/2 output.
Case in point, I owned a WV PHEV back in 2015 and the duty was zero, 18 months latter they revised the omission level and charged new owners for duty.
Same power unit, same emission figures etc, but now due to the band switching, they pay duty.
My wife has a Fiat 500 ICE and we pay £20 duty for 12 months.
Fiat are STILL producing the same car with the same power plant and the same emission figures.
Duty is now about £135.00 - How does that work ????.
They make the rules then break them, in order to take in more money.
No change there then !.

We do pay duty, but currently that is charged at £0, it won't be complicated for them to increase that to whatever suits, no doubt increases will cascade up through the bands and increase across the board as well.

 

[WonkoTheSaneUK]

We do pay duty, but currently that is charged at £0, it won't be complicated for them to increase that to whatever suits, no doubt increases will cascade up through the bands and increase across the board as well.

Exactly.
That is precisely why we still have to fill in the VED form every year, even when it currently says £0.

 

[gus]

Just had a look on my V5C, the only thing on it really apart from weight is Max net power (KW) so either a flat charge or based on max net power?