Pay per mile. Another blow for EV drivers

[GranTurismoEra]

Either way youll pay and like it. Then a random lady will knock on your door offering free insulation and double glazing if you stop working and get on benefits. Heavily discounted solar panels. Then when i tell her so I go to work and need to pay 10k for windows while some people get it for free. She looks at me and smiles then put her hand out like she doesn't know how to reply to the statement. Shes dumbfounded.

So I take away that im being a mug for working when i could get on the dole and get all windows upgraded for free. Also heavily discounted solar panels too. Ive been an idiot i tell you.

I should get it, i have paid into the system. Instead of allocating my contributions to the generational work shy. How about i get a bit of that cash, you feel me?

How about a BMW or Merc. Ill stay humble and suggest an MG to save the government money.

 

[Everest]

I spotted a minor silver lining in the pay-per-mile cloud consultation document...

4.2 eVED is intended to replace lost fuel duty revenue from cars over the long term so, like fuel duty, the amount motorists pay will var ybased on the amount they drive. Through the tax design, the government has sought to ensure the system is fair, respects motorists ’privacy and is as simple as possible to comply with. From 1 April 2028,VED on EV and PHEVs will continue to apply alongside eVED on mileage, from the point of their next VED renewal.

So, as we've all (hopefully) aligned our VED renewal periods to March 2025 to avoid this year's VED on EV's, then - if I'm reading that correctly - we'll be renewing our VED in March 2028, so the eVED charge won't commence for us until March 2029. Just make sure you get your renewal date back to March if you change your EV in the meantime.

 

[tsedge]

I spotted a minor silver lining in the pay-per-mile cloud consultation document...

The consultation document said:
4.2 eVED is intended to replace lost fuel duty revenue from cars over the long term so, like fuel duty, the amount motorists pay will var ybased on the amount they drive. Through the tax design, the government has sought to ensure the system is fair, respects motorists ’privacy and is as simple as possible to comply with. From 1 April 2028,VED on EV and PHEVs will continue to apply alongside eVED on mileage, from the point of their next VED renewal.

Technically, this says Existing VED continues to apply alongside from next VED renewal, it doesn't say that eVED only starts from your next renewal.

You might still be right, but I don't find this language unambiguous.

 

[Everest]

Technically, this says Existing VED continues to apply alongside from next VED renewal, it doesn't say that eVED only starts from your next renewal.

You might still be right, but I don't find this language unambiguous.

Totally agree - very ambiguous - which is why I said "if I'm reading it correctly". Obviously being a consultation document there's likely to be changes anyway. But... as the document refers to eVED as being a simple process with only one interaction a year with DVLA, together with the process of paying a lump sum or DD payments over the year with your VED, then it sort of makes sense that (as currently planned) the VED and eVED will be inextricably linked .

 

[tsedge]

Yes indeed.

I do hope people take the time to give their views on this consultation. I understand skepticism, but if a large number of people push back with constructive comments, we can improve it.

I'm intending to say:

- The tax should not be paid in advance (fuel duty isn't) and there's no good justification for that, especially as significant numbers of people won't have a predictable mileage.

- By paying in arrears, it is much simplified: you simply enter the mileage you drove the previous year when you retax your car. If you want to spread the cost out, just allow people to pay in instalments as with existing VED.

- To simply buying and selling, simply allow people to update their mileage any time they want during the year, so they can pay for what they've used whenever they like. This will also make it easier for dealers and motor traders.

- To simplify checking the mileage, introduce annual MOTs for all cars from 12 months old. Many new EVs are not receiving regular servicing checks so arguably this is important as there could be serious faults during the first 3 years that are not picked up, especially suspenion-related with heavy cars and bad roads. The additional cost for those able to afford new cars is small and it takes advantage of the existing MOT network.

- To make the scheme more consistent with government goals, revise the existing VED bands for ICE and older cars, so that there is an incentive to move to EVs, rather than hang on to old cars just because they attract £20/£35 VED. EVs should be given an advantage roughly consistent with the goals of this scheme: ie half the cost of comparable ICE vehicles.

- Tie-in the scheme to insurance databases, so that discrepancies between insured mileage and declared mileage can be monitored and used to better detect "clocking".

Of course, it might be better to delay or abandon this scheme altogether in favour of a different solution: eg motorway tolling by ANPR cameras, but that's probably outside the scope of this consultation.

 

[MG Clive]

It'll probably all change by 2028, and by then I'll be getting my State Pension, which will most likely be taxed, so they might as well have the 3p per mile as well.

 

[siteguru]

I don't get my state pension until 2032 ... and it'll all be taxable as my work pension (that I took early) already uses up my tax free allowance. Plus my previous work pension comes due in 2030, so that'll all be taxable too.

 

[MG Clive]

I don't get my state pension until 2032 ... and it'll all be taxable as my work pension (that I took early) already uses up my tax free allowance. Plus my previous work pension comes due in 2030, so that'll all be taxable too.

It's hardly worth having additional pensions, it's just more money for Rachel.

 

[salty]

It's hardly worth having additional pensions, it's just more money for Rachel.

Agree. It is. Still worth have though.

 

[JohnV6]

I have just taken out all my tax free cash. I'm not having my kids paying IHT on it

 

[GaryMG4]

I have just taken out all my tax free cash. I'm not having my kids paying IHT on it

So now you have to spend it all otherwise they will anyway.

 

[GranTurismoEra]

Agree. It is. Still worth have though.

Are they taxing pensions over £12,000 per year? A real shame its taxed at all. That money was sacrificed from working wages in itself taxed. We can say the companies contribution could be taxed. They already pay corporation taxes and National Insurance. If someone has a pension of 50,000 a year after lump sum sure they can tax that 10% or something more forgiving . This taxation is crazy. Is it because UK doesn't produce much or doesn't have an abundance of natural resources or black Gold like UAE?!

 

[JohnV6]

You get tax releif on pension contributions. The pension itself is classed as taxable income.

 

[salty]

State pension isn't taxed. But any private pensions will be. Because they will be over the £12,570 allowed before tax. Like you say shouldn't be taxed at all. You pay tax all ya working life, and then retire and still pay tax. Not right, but that's just how it is, unfortunately.

 

[Scotsman]

You've only got one life spend your money can't take it with you . That's my take on it

 

[tsedge]

State pension is taxable, it is just that the maximum given hasn't exceeded the personal allowance. When it does (soon), part of it will be taxed. The government has announced this will be "easy" to do without having start filling out a tax return (for those that don't currently do one).

 

[MG Clive]

State pension is taxable, it is just that the maximum given hasn't exceeded the personal allowance. When it does (soon), part of it will be taxed. The government has announced this will be "easy" to do without having start filling out a tax return (for those that don't currently do one).

I actually don't think (or rather hope) the Government, or any Government will allow the State Pension to be taxed, there will be countrywide disapproval and uproar.

 

[LenEV2016]

I actually don't think (or rather hope) the Government, or any Government will allow the State Pension to be taxed, there will be countrywide disapproval and uproar.

Wishful thinking from the boy nearing that stage in life

 

[Scotsman]

Could be worse you could live in south Korea where you would still be working at 73 years old or Japan 70 years think positive where else in the world can you get taxed twice for having a car

 

[GaryMG4]

I pay tax on my state pension because I contributed to SERPS for a few years. They have announced that if you only receive the basic state pension it will not be taxed, as with the frozen bands the state pension is expected to exceed £12,570 in 2027 due to inflation.