Forum home Commuter cycling forum Commuting chat

VED becomes a road tax

SewinmanSewinman Posts: 2,131
edited July 2015 in Commuting chat
Interesting that VED is going to change to a hypothecated road tax from 2017. It won't help with the 'get off our roads cos you don't pay tax' argument from some people driving cars.

HMT is usually against tax hypothecation....the thin end of the wedge. I am looking forward to all VAT raised from bike gear sales to go towards improving bike facilities, or maybe not.
«13

Posts

  • markhewitt1978markhewitt1978 Posts: 7,614
    Indeed, not good news for cycling. As VED will actually pay for the roads the argument that cyclists are somehow 'freeloaders' will only get louder.
  • DonDaddyDDonDaddyD Posts: 12,689
    I disagree, while VED has become road tax clearly its pricing is based on emissions.

    Also... Boris said on LBC that he'll be looking at ways to enforce cyclists to use the superhighway. He was responding to a question from a lady who said, will cyclists get fined for not using the bike lanes like cars do when they enter bus lanes etc. Borris's view is that it's been paid for it should and must be used.
    Food Chain number = 4

    A true scalp is not only overtaking someone but leaving them stopped at a set of lights. As you, who have clearly beaten the lights, pummels nothing but the open air ahead. ~ 'DondaddyD'. Player of the Unspoken Game
  • graeme_s-2graeme_s-2 Posts: 3,382
    Presumably VED will be spent on new roads and maintaining Highways England's network of motorways and major roads. I would imagine this will mean councils will still be paying for the rest of the UK road network with their council tax revenue, which isn't that significant a change given that cyclists aren't allowed on motorways and most cyclists will tend to avoid the major roads that make up that network.
  • markhewitt1978markhewitt1978 Posts: 7,614
    I disagree, while VED has become road tax clearly its pricing is based on emissions.

    Not entirely, it will be based on emissions levels for the first year. After that it's just zero emissions or some emissions, with £140 for the latter. Plus a higher rate for cars costing over £40k
  • pblakeneypblakeney Posts: 14,124
    Does anyone really believe that 100% will be spent on roads?

    :lol: :roll: :lol::lol::lol::lol::lol:

    I nearly thought it was April 1st.
    The above may be fact, or fiction, I may be serious, I may be jesting.
    I am not sure. You have no chance.
    veronese68 wrote:
    PB is the most sensible person on here.
  • DonDaddyDDonDaddyD Posts: 12,689
    I disagree, while VED has become road tax clearly its pricing is based on emissions.

    Not entirely, it will be based on emissions levels for the first year. After that it's just zero emissions or some emissions, with £140 for the latter. Plus a higher rate for cars costing over £40k
    What!? Makes no sense.
    Food Chain number = 4

    A true scalp is not only overtaking someone but leaving them stopped at a set of lights. As you, who have clearly beaten the lights, pummels nothing but the open air ahead. ~ 'DondaddyD'. Player of the Unspoken Game
  • markhewitt1978markhewitt1978 Posts: 7,614
    I disagree, while VED has become road tax clearly its pricing is based on emissions.

    Not entirely, it will be based on emissions levels for the first year. After that it's just zero emissions or some emissions, with £140 for the latter. Plus a higher rate for cars costing over £40k
    What!? Makes no sense.

    haha. Yeah it's confusing.

    Zero emissions you pay no tax as now.

    For everything else the first years tax is paid on a sliding emissions scale, similar to how it works now

    CJZPslqXAAQkGRt.png

    However after the first year everyone except zero emissions pays £140 per year.

    Unless your car cost more than £40,000 in the first place in which case it's £310 per year for the first five years and £140 thereafter.

    Got it? Good :D
  • pblakeneypblakeney Posts: 14,124
    edited July 2015
    I disagree, while VED has become road tax clearly its pricing is based on emissions.

    Not entirely, it will be based on emissions levels for the first year. After that it's just zero emissions or some emissions, with £140 for the latter. Plus a higher rate for cars costing over £40k
    What!? Makes no sense.

    haha. Yeah it's confusing.

    Zero emissions you pay no tax as now.

    For everything else the first years tax is paid on a sliding emissions scale, similar to how it works now

    CJZPslqXAAQkGRt.png

    However after the first year everyone except zero emissions pays £140 per year.

    Unless your car cost more than £40,000 in the first place in which case it's £310 per year for the first five years and £140 thereafter.

    Got it? Good :D
    Great!
    That means I will be paying less for my high emissions car in the future.
    That's logical. :roll:
    Prices of 5 year old V8s may rise accordingly. :wink:
    The above may be fact, or fiction, I may be serious, I may be jesting.
    I am not sure. You have no chance.
    veronese68 wrote:
    PB is the most sensible person on here.
  • SewinmanSewinman Posts: 2,131
    I don't think any cars are under 50 grams, apart from electric cars (on the road).
  • markhewitt1978markhewitt1978 Posts: 7,614
    I don't think any cars are under 50 grams, apart from electric cars (on the road).

    When the bands were first introduced there were no cars under 100 grammes, things change.
  • Kieran_BurnsKieran_Burns Posts: 10,052
    What the hell???? My present VED is £290. Are you telling me that's going to become £1200 for a year?
    Chunky Cyclists need your love too! :-)
    2009 Specialized Tricross Sport
    2011 Trek Madone 4.5
    2012 Felt F65X
    Proud CX Pervert and quiet roadie. 12 mile commuter
  • Fatcat1974Fatcat1974 Posts: 24
    I thought this was terrible news when I first saw it, but the table of VED bands has changed my mind to a degree. Zero emissions = zero tax. End of argument... in theory at least!
  • DonDaddyDDonDaddyD Posts: 12,689
    So as I have only ever bought secondhand cars, I can look forward to paying £140 road tax irrespective of my cars emissions. Yippee!

    Or am I being dumb...
    Food Chain number = 4

    A true scalp is not only overtaking someone but leaving them stopped at a set of lights. As you, who have clearly beaten the lights, pummels nothing but the open air ahead. ~ 'DondaddyD'. Player of the Unspoken Game
  • markhewitt1978markhewitt1978 Posts: 7,614
    What the hell???? My present VED is £290. Are you telling me that's going to become £1200 for a year?

    No. Firstly it only applies to vehicles registered after April 2017. Plus the higher rate is the first year ONLY. After that it reverts to £140.
  • markhewitt1978markhewitt1978 Posts: 7,614
    So as I have only ever bought secondhand cars, I can look forward to paying £140 road tax irrespective of my cars emissions. Yippee!

    Or am I being dumb...

    That's pretty much right, unless you buy an electric car.
  • Kieran_BurnsKieran_Burns Posts: 10,052
    What the hell???? My present VED is £290. Are you telling me that's going to become £1200 for a year?

    No. Firstly it only applies to vehicles registered after April 2017. Plus the higher rate is the first year ONLY. After that it reverts to £140.

    Someone needs to pay my cleaning bill.....
    Chunky Cyclists need your love too! :-)
    2009 Specialized Tricross Sport
    2011 Trek Madone 4.5
    2012 Felt F65X
    Proud CX Pervert and quiet roadie. 12 mile commuter
  • SewinmanSewinman Posts: 2,131
    edited July 2015
    What the hell???? My present VED is £290. Are you telling me that's going to become £1200 for a year?

    No. Firstly it only applies to vehicles registered after April 2017. Plus the higher rate is the first year ONLY. After that it reverts to £140.

    Someone needs to pay my cleaning bill.....

    After 2017, if you buy that car and it was worth over 40k new then your VED would be £450 until the car was five years old.

    From a green perspective this does not make most second hand car buyers think about CO2 emissions, so a bit regressive on that front. Quite a kick in the teeth for new chelsea tractor sales!
  • bendertherobotbendertherobot Posts: 11,672
    What an utterly bonkers system. Utterly bonkers.

    And, it appears, it was to fund roads in England. Now, Highways is devolved. Tax is not. So the Welsh Government won't see the VED road fund..........
    My blog: http://www.roubaixcycling.cc (kit reviews and other musings)
    https://twitter.com/roubaixcc
    Facebook? No. Just say no.
  • lostboysaintlostboysaint Posts: 4,252
    It's quite bizarre that they come up with more and more ridiculous taxation solutions instead of doing the blindingly obvious and getting rid of it altogether (and all the costs that go with it's application and administration) and just sticking it on the price of fuel - thus penalising the heavy users!
    Trail fun - Transition Bandit
    Road - Wilier Izoard Centaur/Cube Agree C62 Disc
    Allround - Cotic Solaris
  • DonDaddyDDonDaddyD Posts: 12,689
    So as I have only ever bought secondhand cars, I can look forward to paying £140 road tax irrespective of my cars emissions. Yippee!

    Or am I being dumb...

    That's pretty much right, unless you buy an electric car.
    If this road tax model was used now I wouldn't have my 2ltr Mazda 6, I would have th 2.5ltr turbo all wheel drive MPS version - which puts out nearly double the emissions my car does (I pay £250 a month VED)...

    I'm not sure how this encourages someone like me to go green.

    This is the Tories however, I await the revisions to VD for cars older than 5 years.
    Food Chain number = 4

    A true scalp is not only overtaking someone but leaving them stopped at a set of lights. As you, who have clearly beaten the lights, pummels nothing but the open air ahead. ~ 'DondaddyD'. Player of the Unspoken Game
  • SewinmanSewinman Posts: 2,131
    :) You are middle England now DDD, George is wooing you by giving you 'a fair chance for a good car', like a good hard working family man should have a right to. A little bit of life in the fast lane for all your hard work, a debt of thanks from the country, giving you a bit of choice in your constrained world.

    Soma for the upwardly mobile!
  • markhewitt1978markhewitt1978 Posts: 7,614
    In some ways I wish they'd just introduce a bicycle 'road tax' so we could pay and end the argument.
  • It's quite bizarre that they come up with more and more ridiculous taxation solutions instead of doing the blindingly obvious and getting rid of it altogether (and all the costs that go with it's application and administration) and just sticking it on the price of fuel - thus penalising the heavy users!

    Absolutely and while they're at it whack insurance into the cost as well - no more dodging insurance premiums.
  • In some ways I wish they'd just introduce a bicycle 'road tax' so we could pay and end the argument.

    Then you'd need a licence plate of some description and they'd still moan at us, it's not about the tax or anything else it's because we're in their bloody way :(
  • davisdavis Posts: 2,566
    Interesting that VED is going to change to a hypothecated road tax from 2017. It won't help with the 'get off our roads cos you don't pay tax' argument from some people driving cars.

    HMT is usually against tax hypothecation....the thin end of the wedge. I am looking forward to all VAT raised from bike gear sales to go towards improving bike facilities, or maybe not.

    It's only hypothecated for the Strategic Road Network, which is 2.4% of the surfaced road network in the UK, and that includes motorways. The rest are trunk roads which I wouldn't really want to ride on.

    Still, I think it's dumb. I don't think hypothecation is a good idea, and I don't want to get into a "discussion" about which roads some muppet thinks he's paid for...

    I still think VED should be binned entirely, and it should be put on fuel - although that would really, really hurt the hauliers.
    Sometimes parts break. Sometimes you crash. Sometimes it’s your fault.
  • jds_1981jds_1981 Posts: 1,858
    Woohoo. So looks like my £490 road tax is going down.
    FCN 9 || FCN 5
  • graeme_s-2graeme_s-2 Posts: 3,382
    CJZPslqXAAQkGRt.png

    However after the first year everyone except zero emissions pays £140 per year.

    Unless your car cost more than £40,000 in the first place in which case it's £310 per year for the first five years and £140 thereafter.
    What it actually says is you pay £310 on top of the standard rate - that's £450 a year from year 2 to 6 (I think) for cars costing more than £40k
  • graeme_s-2graeme_s-2 Posts: 3,382
    Woohoo. So looks like my £490 road tax is going down.
    Yes it will. So long as you buy a brand new band L car after April 2017, then pay £1700 in VED for it in the first year. After that your VED will be £140. Unless the car cost more than £40k new, in which case it'll be £450 from year 2 to 6 and then £140 after that.
  • iPeteiPete Posts: 6,076
    Wait, what, my VED is going to drop from £260 to £140 a year? Need to have a coffee and come back to that chart..
  • graeme_s-2graeme_s-2 Posts: 3,382
    Wait, what, my VED is going to drop from £260 to £140 a year? Need to have a coffee and come back to that chart..
    It only applies to new cars registered on or after 1st April 2017. Otherwise your car will stay in its existing VED band.
Sign In or Register to comment.