Nov 17th Budget - Tax impact for EVs

[Baby Driver]

From April 2025 the Chancellor has announced that Electric cars owners will need to pay!

No amount announced as yet!

Thoughts????

 

[siteguru]

They just make it up as they go along ?

 

[colsky]

This is post budget BBC article:

Electric car drivers must pay tax from 2025

Motoring groups, including the AA, warned the move would reduce the incentive to switch to electric vehicles.

www.bbc.co.uk

The comments below quickly turn into a sarcastic opinionated cesspool (as internet comments usually do), with lots of non EV lovers saying that EV cars should actually pay more tax than petrol cars, as EVs are heavier and wear the roads more!

 

[Ian Key]

Until it happens I won't be worrying about it and if I have to pay £165 for VED then so be it. It's what I'm paying at the moment anyway and whose to say the VED for other cars won't be increased even before 2025.
If £165 p/a was make or brake on whether or not I could afford to run an EV like the MG4 then perhaps I shouldn't be changing my car in the first place.

 

[woody87]

I heard the tax rate is going to be determined by how efficient the car is.

 

[Lovemyev]

You will find lots of chat on this subject, on the “Thursday Budget - EV VED” thread.
Maybe @Alb could do his sterling job of merging both threads ?.
Thank you in advance ?.

 

[Nutnut]

On one hand, it was to be expected that there would be some change, but how it'll likely be applied seems to have been a complete logic fail.

@Alb Sorry... maybe worth keeping this more accurate thread title, but merging with these?

Thursday's budget - EV VED ?

What's the likelihood of the 'free lunch' for EV road tax coming to an end thurs ? Rumour is it will, wonder if Hunt will make it retrospective or from April 23 :unsure:

www.mgevs.com

Nov 17th Budget - Tax impact for EVs

The tax levied on the average medium sized ICE car per year on its running costs is nearly £1000. For an EV charging at home it is less than £100. If you were the Chancellor what would you do on Nov 17th?

www.mgevs.com

 

[nivs123]

Until it happens I won't be worrying about it and if I have to pay £165 for VED then so be it. It's what I'm paying at the moment anyway and whose to say the VED for other cars won't be increased even before 2025.
If £165 p/a was make or brake on whether or not I could afford to run an EV like the MG4 then perhaps I shouldn't be changing my car in the first place.

For me, its more a case of "the straw that broke etc...." cost of electricity shooting up....mg4's faults....and now ved..... "Enough, no more. 'Tis not so sweet now as it was before"

 

[Vipar]

Taxing EV’s will not help sales they should give us energy bill rebates that might convince the sceptics. Keep posting how MPG you get that will also help.???

 

[Deleted member 10041]

Personally the prospect of £165 a year in 2 years time has no bearing on this car, other ev options above 40k I would now rule out, as over £500 a year is not something I'm willing to pay (for either an EV or ICE)

 

[NoSkill]

Total shambles !.
If they intended to apply VED to electric cars FROM 2025 then that would be bad enough in itself !.
But I am still really struggling to get my head around, how they have a system of grading the cost of your VED against, set against the volume of co/2 emissions that your car produces, which I do agree with.
Then suddenly announce a “ball park” figure of £165.00 to totally ZERO emission BEV’s that will have a higher VED cost over some ICE cars and even some PHEV’s !.
You either replace the whole emission rating scheme with something else, or I feel another “back track” statement on the crazy application on its way !.
You just CAN’T apply an increase in VED to zero emission cars and STILL have a rating system in place that is based purely on co/2 emissions !.
It’s a completely in direct conflict of how we currently set the VED rates in the U.K.

As has been mentioned before the "whole emission rating scheme" was actually replaced with something else in 2017. It's not in conflict with how VED rates are currently set.

 

[4ND]

How is a dirty diesel cheaper to keep than an EV…? Madness.

As it's tax bracket was made when the so-called 'dirty diesel' came under the banner of 'dash for diesel'.
And it isn't cheaper to keep than an EV; the EV is currently £0. New diesels aren't £0 or £30, and nor will electric cars be.
I'm more than pleased they are charging VED on EVs. Why should the users drive scott free on UK roads.

 

[nivs123]

As it's tax bracket was made when the so-called 'dirty diesel' came under the banner of 'dash for diesel'.
And it isn't cheaper to keep than an EV; the EV is currently £0. New diesels aren't £0 or £30, and nor will electric cars be.
I'm more than pleased they are charging VED on EVs. Why should the users drive scott free on UK roads.

And I'm more than pleased that you're on a higher spiritual plane than the rest of us.

 

[4ND]

And I'm more than pleased that you're on a higher spiritual plane than the rest of us.

Thank you for being the only person ever on planet earth to have said that

 

[Lovemyev]

As has been mentioned before the "whole emission rating scheme" was actually replaced with something else in 2017. It's not in conflict with how VED rates are currently set.

I was not ware of this thanks ?.
And yet ICE cars need to satisfy an exhaust emission test before achieving a MOT pass to then renew there VED ?.

 

[nivs123]

Thank you for being the only person ever on planet earth to have said that

You're still waiting on it being sincere, though.

 

[NoSkill]

I was not ware of this thanks ?.
And yet ICE cars need to satisfy an exhaust emission test before achieving a MOT pass to then renew there VED ?.

The emissions test in an MOT doesn't give a 'g/km' CO2 figure that related to VED in any way, I believe any petrol since 1992 has the same limits on that test as well.

 

[4ND]

You're still waiting on it being sincere, though.

No worries. No need to start going down the oh so familiar road of personal remarks simply because someone don't agree with you

 

[OJEastwood]

This is post budget BBC article:

Electric car drivers must pay tax from 2025

Motoring groups, including the AA, warned the move would reduce the incentive to switch to electric vehicles.

www.bbc.co.uk

The comments below quickly turn into a sarcastic opinionated cesspool (as internet comments usually do), with lots of non EV lovers saying that EV cars should actually pay more tax than petrol cars, as EVs are heavier and wear the roads more!

It would almost be entertaining reading the comments if it were't so sad and infuriating that so many people have swallowed hook, line and sinker the same outdated rubbish and F.U.D that's been circulating for many years and has proven to be utter nonsense

 

[smokie]

With current public charging prices and fossil fuels having dropped in price a bit, I'm not so sure the price advantage is so great, when you have to spend tens of thousands on the car in the first place.

Saving the planet as a sales pitch doesn't work for many either.

I did note however that they predicted that 50% of new car sales will be EVs by 2025.