Pay per mile. Another blow for EV drivers

[tsedge]

More information on how it will work from the government's eVED consultation:

 

[tsedge]

So basically:

• You fill in your predicted / actual mileage when you renew your VED.
• Everyone gets mileage checked annually, including cars that don't need an MOT yet.

Edit; The latter is "at an accredited provider" and subject to consultation. They are open to arguments not to check cars until the first MOT.

Edit2; I believe they expect this to be your dealer when you go for annual service (though not all cars have/require an annual service and not all cars have a dealer!).

 

[NikLiverpool]

The 5p fuel duty freeze will disappear and moving forward it will go higher; as per the EV per mile charge.
I reckon at one point they will implement a single system regardless being EV or ICE.

Interesting the fact that it will start in 2028...I wonder if they are just kicking the can further down the road for a potentially different government to implement...

 

[tsedge]

@EVsince2016 The VED consultation explicitly states that foreign mileage will not be deductible, the total mileage will be charged. - the reason given for not deducting this is privacy concerns, not wanting to monitor where people drive.

 

[salty]

So basically:

• You fill in your predicted / actual mileage when you renew your VED.
• Everyone gets mileage checked annually, including cars that don't need an MOT yet.

So which ever way they enforce it, or justify it. It's gonna cost us more dosh, it's as simple as that. Even low mileage drivers, will be pay more. I shudder to think, what's coming next.

 

[tsedge]

Note that if you lease a car you won't pay this yourself, likely to be paid by the leasing compant as part of your mileage deal.

 

[tsedge]

This bit is interesting:

 

[Lollipopman]

I think today's budget was an invitation by the Labour Party NOT TO VOTE FOR US at the next election as they are (or should be) aware they have not a chance of getting in next election.

 

[salty]

Note that if you lease a car you won't pay this yourself, likely to be paid by the leasing compant as part of your mileage deal.

Mmm, possibly. But won't the leasing company, just charge you more for the deal. Only presuming. You don't usually get owt for nowt. EV drivers used too, but that's slowly being eroded.

 

[maskull]

And how is move going to help EV uptake ? People will be more likely to buy PHEV or go back to dinosaur juice entirely

 

[tsedge]

Basically, when you buy a second hand car you will be able to see what mileage it has been paid up to on the DVLA database as part of your buying decision - knowing you will be on the hook for the difference.

They are clearly keen not to get involved resolving any discrepancies, but this creates buyer's risk, especially if someone isn't clued up and this adds a new way to get ripped off.

Consultation document is here:

https://assets.publishing.service.gov.uk/media/69260d23aca6213a492dd0a2/Consultation_on_the_Introduction_of_eVED.pdf

 

[tsedge]

Mmm, possibly. But won't the leasing company, just charge you more for the deal. Only presuming. You don't usually get owt for nowt. EV drivers used too, but that's slowly being eroded.

Yep, you'll pay a bit more per month or in the upfront charge, that's all - this is covered in the consultation doc.

 

[Hallix73]

Yes, but I would argue this is the wrong time if they want to increase adoption.

But you now will be paying £600/yr VED if you do a good annual mileage with the new charge.

Remember: home charging costs might be low but a big percentage of people can't charge at home. For them, this is probably the tipping point that means they will switch back or not go EV due to higher costs.

I agree with all of that but if you are buying new and get full £3750 grant that covers 6 years tax.
I can home charge so lucky in that respect and average about 14,000 miles per year.

 

[NikLiverpool]

And how is move going to help EV uptake ? People will be more likely to buy PHEV or go back to dinosaur juice entirely

Not sure how this will justify going back to petrol; nevermind PHEVs.

Petrol frozen duty goes away and then it will increase each year.
PHEVs will get it worst since they will have to pay the tax per mile (although at half rate) and still pay higher prices on the pump when they use petrol.

 

[tsedge]

I agree with all of that but if you are buying new and get full £3750 grant that covers 6 years tax.
I can home charge so lucky in that respect and average about 14,000 miles per year.

But isn't that rather unfair on secondhand buyers and those without home charging - ie poorer buyers?

I can see this further undermining second hand values.

 

[tsedge]

IF they go ahead with raising the duty: it will be bad politics so the (fuel) can may be kicked down the road again next year.

 

[Miles Roberts CG]

But isn't that rather unfair on secondhand buyers and those without home charging - ie poorer buyers?

Absolutely. I have no idea how they plan to administer this 3p/mile tax - For example, I drive around 18-20k miles per year (£540-600 tax / year potentially), but some of that distance may be in my own (company) car, some may be in a customer's car (eg delivery of a new car, or collecting for service etc), and some may even be outside of the UK (for example if I decide to take my EV on holiday to Spain).

I also drive a few thousand miles per year when reviewing new cars for my YouTube channel, although none of those are registered to me.

How might it work with ex demonstrator cars? Say the ex-demo car has 2000 miles on the clock when sold after 4 months - is the tax for 2000 miles paid by the dealer at the point of sale? Or does the mileage not get checked until the annual service, or 2nd year service (depending on the interval from the manufacturer), or the first MoT point at 3 years old?

I think there could be a rise in "mileage adjustment" services offered by unscrupulous businesses too...

 

[salty]

And how is move going to help EV uptake ? People will be more likely to buy PHEV or go back to dinosaur juice entirely

It's not. But for some so called clever well educated people. They really are as thick as

 

[tsedge]

Absolutely. I have no idea how they plan to administer this 3p/mile tax - For example, I drive around 18-20k miles per year (£540-600 tax / year potentially), but some of that distance may be in my own (company) car, some may be in a customer's car (eg delivery of a new car, or collecting for service etc), and some may even be outside of the UK (for example if I decide to take my EV on holiday to Spain).

The eVED consultation document is clear: there are no deductions for taking the car abroad and no account for who is driving: the registered keeper is liable for the whole charge.

I also drive a few thousand miles per year when reviewing new cars for my YouTube channel, although none of those are registered to me.

Then you won't pay for those.

How might it work with ex demonstrator cars? Say the ex-demo car has 2000 miles on the clock when sold after 4 months - is the tax for 2000 miles paid by the dealer at the point of sale? Or does the mileage not get checked until the annual service, or 2nd year service (depending on the interval from the manufacturer), or the first MoT point at 3 years old?

The consultation says that secondhand car buyers have to check what mileage is paid for on the DVLA database and then it is part of the buyer's transaction- ie the dealer could pay or knock money off the deal or whatever mutual agreement is reached. Buyer's risk.

I think there could be a rise in "mileage adjustment" services offered by unscrupulous businesses too...

Yes, probably.

I've posted a link to the consultation in my thread in the General forum.

 

[LenEV2016]

Absolutely. I have no idea how they plan to administer this 3p/mile tax - For example, I drive around 18-20k miles per year (£540-600 tax / year potentially), but some of that distance may be in my own (company) car, some may be in a customer's car (eg delivery of a new car, or collecting for service etc), and some may even be outside of the UK (for example if I decide to take my EV on holiday to Spain).

I also drive a few thousand miles per year when reviewing new cars for my YouTube channel, although none of those are registered to me.

How might it work with ex demonstrator cars? Say the ex-demo car has 2000 miles on the clock when sold after 4 months - is the tax for 2000 miles paid by the dealer at the point of sale? Or does the mileage not get checked until the annual service, or 2nd year service (depending on the interval from the manufacturer), or the first MoT point at 3 years old?

I think there could be a rise in "mileage adjustment" services offered by unscrupulous businesses too...

Not like our government to say they are doing something and it ends up half arsed