Pay per mile. Another blow for EV drivers

[NikLiverpool]

It does seem like they have gone out of the way to annoy almost everyone: eg why can't I any longer save £20,000 cash / year in an ISA but an over-65 person can? You'd have thought it would be the other way around to encourage oldies to spend their pots!

I wish I could save 20k per year in my ISA; and for the average person there are ways around this. Normal Isa, stocks Isa, partner's Isa, kids etc.
In my case I could in theory have 8 ISAs (including wife and kids). I am not sure going from a theoretical £160k per year to 96k will make much difference since in reality I couldn't save half of this.

This is purely for people with enough money on the side to invest instead of stockpile in ISAs. I am not dead against it.

 

[tsedge]

Fair enough, you could be right.

Not sure about a per mile tax without separate duty: it penalises people in rural areas. I expect they will persist with both elements.

 

[NikLiverpool]

At the moment 15% of the UK population leaves in rural areas; around 10 million.
A number that is on constant decline. Furthermore the majority of rural population tends to vote for Conservatives (or alternatives).
I reckon they will be willing to take the hit by losing these votes by presenting it as a fair approach regardless the car you own (ICE or EV) and it will go down better with urban population (more labour inclined in general).

 

[tsedge]

At the moment 15% of the UK population leaves in rural areas; around 10 million.
A number that is on constant decline. Furthermore the majority of rural population tends to vote for Conservatives (or alternatives).

Not down here, we are Lib Dem at the moment almost everywhere, have been Tory before, only have Labour in the cities. Green polling well and Reform too at the moment.

I reckon they will be willing to take the hit by losing these votes by presenting it as a fair approach regardless the car you own (ICE or EV) and it will go down better with urban population (more labour inclined in general).

You are probably right! Maybe Reform will reform it, since they look the most likely replacements at the moment.

 

[Ian 2455]

At the end of the day, most EV owners will probably still drive an EV because we know they're so much better than ICE in just about every way, but it'll make it harder to get non EV drivers to switch to electric.

Very true! And every year from 2030 onwards, EVs will co.e.j to their own. All we need now is for certain CPOs to drop their prices....looking at you Gridserve etal....

 

[Lovemyev]

Of course they have implemented the pay by mile for EV’s and PHEV’s as it’s an easy target, but have no idea how they intend to manage it of course !.
Commencing in 2028 this gives them a “stop gap” while they try and figure it all out .
But they have to stay in power to do this.
Also, giving it 2 years will give time to see just how it effects the reduction in EV & PHEV sales in the motor trade maybe .
Reduced orders means a reduction in factory production rates and the knock on effect is pretty obvious to us at least.
If demand falls rapidly, they may have to revisit the idea .

 

[MikeJS]

It does seem like they have gone out of the way to annoy almost everyone: eg why can't I any longer save £20,000 cash / year in an ISA but an over-65 person can? You'd have thought it would be the other way around to encourage oldies to spend their pots!

It is about attitude to risk. When we are younger it makes sense to have a higher risk portfolio, however, as you get older they gasin is less important that keeping what you have safe. This is how any financial adviser would plan.

 

[tsedge]

It is about attitude to risk. When we are younger it makes sense to have a higher risk portfolio, however, as you get older they gasin is less important that keeping what you have safe. This is how any financial adviser would plan.

I'd rather make own decision: which I could before this change. My risk appetite may be more conservative or liberal than others.

But anyway, it was just an example of something in the budget that annoyed me, not the end of the world.

 

[MG Clive]

Luckily this would only have cost me £75 based on my previous 12 months mileage, but most people will be hit much harder.

 

[salty]

Luckily this would only have cost me £75 based on my previous 12 months mileage, but most people will be hit much harder.

Still £75. Me personally about £250.

 

[MG Clive]

Still £75. Me personally about £250.

Oh yes, I'd still rather not have to pay it, £250 isn't nice

 

[OriginalBigAl]

Would I be missing something here but, for those who can only use public charging and pay 20% VAT on each kilowatt. Will they be paying double tax? ie : 60p kwh , 12p in tax divide 3.4 to get per mile price, 3.5 p tax per mile, pre paid. ???? Would having a receipt for each session be admissible proof and be deductible? Nightmare!

 

[tsedge]

Would I be missing something here but, for those who can only use public charging and pay 20% VAT on each kilowatt. Will they be paying double tax? ie : 60p kwh , 12p in tax divide 3.4 to get per mile price, 3.5 p tax per mile, pre paid. ???? Would having a receipt for each session be admissible proof and be deductible? Nightmare!

No exemptions or discounts. How you charge isn't relevant. You pay the charge on your total mileage and the registered keeper is responsible for reporting it accurately and paying it in advance.

To be fair, fuel duty has VAT on top of it. So there is precedence for double taxing.

 

[tsedge]

I will be replying to the consultation and recommending a simpler scheme that is pay in arrears, not in advance with the actual mileage you've done.