New Car VED Rates from April 1st 2017

Beluga S line

Registered User
Please see the Auto Express link detailing changes to the New car tax rates from April next year.

This means the S3 Cab will now cost you £950 to tax your new car for the first year...and then £810 every year for the next four years!

http://www.autoexpress.co.uk/car-news/consumer-news/88369/car-tax-bands-what-you-need-to-know

Looking at the RS3 this will only set you back around £1500 a year to tax your new car.

But on the plus side apparently we will have better roads to drive on!!!!
 

paradigital

Registered User
I still to this day don't understand why people have a hard time grasping that VED has nothing to do with roads or infrastructure. So why do people moan that their extortionate "road tax" (which doesn't exist, Road Fund License was scrapped over 60 years ago) doesn't pay for the roads?

It isn't meant to.
 

Beluga S line

Registered User
I still to this day don't understand why people have a hard time grasping that VED has nothing to do with roads or infrastructure. So why do people moan that their extortionate "road tax" (which doesn't exist, Road Fund License was scrapped over 60 years ago) doesn't pay for the roads?

It isn't meant to.
If you read the Auto Express article you will see from next year the extra tax apparently WILL go towards the upkeep of roads and infrastructure. Well that is George Osborne's plan anyway, we will wait and see!
 

BarryG79

Registered User
Please see the Auto Express link detailing changes to the New car tax rates from April next year.

This means the S3 Cab will now cost you £950 to tax your new car for the first year...and then £810 every year for the next four years!

http://www.autoexpress.co.uk/car-news/consumer-news/88369/car-tax-bands-what-you-need-to-know

Looking at the RS3 this will only set you back around £1500 a year to tax your new car.

But on the plus side apparently we will have better roads to drive on!!!!

That's not how I'm reading it.

1st year varies depending on c02, then 2nd year is a flat £140 for all cars not zero co2. If car cost more than £40k then you pay an extra £310 annually, meaning road tax for yrs 2-5 is £450.
 

Beluga S line

Registered User
That's not how I'm reading it.

1st year varies depending on c02, then 2nd year is a flat £140 for all cars not zero co2. If car cost more than £40k then you pay an extra £310 annually, meaning road tax for yrs 2-5 is £450.
My mistake...Yes you're correct! I'll correct my post.
Either way still a lot of money. I can see lots of cars now hovering under the £40k bracket!

I can't edit or delete this thread!
 

Migwire

Registered User
What about the Tesla? Zero emissions but it'll be clattered with tax due to its value!

My current A3 184 TDI is going to increase 700%. Party of the working man??

Sent from my SM-G930F using Tapatalk
 

Mark_86

Registered User
I still think £40k is too low, they should have done £60k or something because a lot of the premium cars are not going to be under £40k. That £40k is the RRP of the car plus any options you spec aswell, so even if you get a deal under £40k, you're still not safe.

I said in another thread, lots of cars are going be left lying around on dealer forecourts in April as not many people know about these changes and the dealers are clueless aswell. People will just be cancelling new orders and buying high end Fords and Vauxhalls.

I'll put a fiver on the government delaying the introduction of this. It'll destroy the UK car industry overnight.




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desertstorm

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If you can afford to buy a 40K car then the extra cost of road tax isn't going to make that much difference to you really is it ?. The extra £310 a year amounts to less than £1 a day. There aren't that many people driving around in Teslas are there? . The only cars with free road tax will be fully electric and less than 40K. The goverment wants to encourage people to drive electric cars but not Teslas more like Nissan Leafs. As stated above road tax hasn't been used for the upkeep of roads for many a long time however a good proportion will be used for new road projects / infrastructure .
With the baseline set at £140 for newer cars in 4 years time it will probably encourage people driving older less efficient high tax cars to scrap them because of the greater amount of road tax they will be paying .
@Migwire you won't be paying any more tax than you do at the moment as these new road tax rules only apply to cars registered after April 1st 2017 .
That's not saying they won't add £10 a year to the £20 you are spending but that's going to cost you another 3p a day.
I can see there may be quite a bit of a run on new registrations for cars on 67 plates to avoid these tax hikes and manufacturers will probably be rejigging there price lists so some car models can creep under the 40K limit.
 

Mark_86

Registered User
If you can afford to buy a 40K car then the extra cost of road tax isn't going to make that much difference to you really is it ?. The extra £310 a year amounts to less than £1 a day. There aren't that many people driving around in Teslas are there? . The only cars with free road tax will be fully electric and less than 40K. The goverment wants to encourage people to drive electric cars but not Teslas more like Nissan Leafs. As stated above road tax hasn't been used for the upkeep of roads for many a long time however a good proportion will be used for new road projects / infrastructure .
With the baseline set at £140 for newer cars in 4 years time it will probably encourage people driving older less efficient high tax cars to scrap them because of the greater amount of road tax they will be paying .
@Migwire you won't be paying any more tax than you do at the moment as these new road tax rules only apply to cars registered after April 1st 2017 .
That's not saying they won't add £10 a year to the £20 you are spending but that's going to cost you another 3p a day.
I can see there may be quite a bit of a run on new registrations for cars on 67 plates to avoid these tax hikes and manufacturers will probably be rejigging there price lists so some car models can creep under the 40K limit.

Well, I still think for £40k is abit low. A person on an average salary can afford a £40k thanks to all the low PCP and lease deals running around these days, so I think because 'credit' is cheap then people are happy to buy nicer cars. I think it just stops people being able to comfortably afford new cars. It's not a huge increase if you break it down like you've done, granted, but it's still a pain. It'd be much better to do a 4 tier system based on RRP imo, but I don't run the dept for transport lol.

Don't you mean 17 plate due on 1st March? The 67 plate cars will all fall into the new tax system.
 

DrEskimo

Registered User
If you can afford to buy a 40K car then the extra cost of road tax isn't going to make that much difference to you really is it ?. The extra £310 a year amounts to less than £1 a day. There aren't that many people driving around in Teslas are there? . The only cars with free road tax will be fully electric and less than 40K. The goverment wants to encourage people to drive electric cars but not Teslas more like Nissan Leafs.

I dont understand why they would care if its a Leaf or a Tesla. The VED by its very definition is a pollution tax, and both of those cars should be promoted for being electric.

IMO price shouldn't come into it. I'm all for people who can afford to pay more into the system, to pay more, but high earners are already contributing more in income tax via their salary AND paying the 20% VAT on the higher cost of the car. Why hit them three times?! Particularly on a duty that has everything to do with emissions and nothing to do with wealth.

I like the logic behind increasing fuel tax, since it directly taxes people that consume more, but this doesnt account for cars that are less polluting, which we should be promoting. What the updated VED should be accounting for is all forms of emissions, not just CO2.
 

Mark_86

Registered User
I dont understand why they would care if its a Leaf or a Tesla. The VED by its very definition is a pollution tax, and both of those cars should be promoted for being electric.

IMO price shouldn't come into it. I'm all for people who can afford to pay more into the system, to pay more, but high earners are already contributing more in income tax via their salary AND paying the 20% VAT on the higher cost of the car. Why hit them three times?! Particularly on a duty that has everything to do with emissions and nothing to do with wealth.

I like the logic behind increasing fuel tax, since it directly taxes people that consume more, but this doesnt account for cars that are less polluting, which we should be promoting. What the updated VED should be accounting for is all forms of emissions, not just CO2.

We already pay one of the highest levels of fuel duty in the world and this would just hurt people more, not to mention haulage companies and anything company that sends stuff via the roads. I'm not sure there is a magic bullet to the issue, but ultimately we all need to pay more into the system to bring the road network back upto scratch and I think EVERYONE who uses a vehicle should pay their way. Just do £195.00 a year for everyone regardless of vehicle. Simples.
 

desertstorm

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Joe4842

Registered User
So my question is......

Normally when you buy a new car the tax is paid for the first year isn't it? so does this mean the dealer would pay that large first year of tax? or have I got the wrong end of the stick


Joe,
 

keenu

Registered User
So my question is......

Normally when you buy a new car the tax is paid for the first year isn't it? so does this mean the dealer would pay that large first year of tax? or have I got the wrong end of the stick


Joe,

They do, but it is part of the Recommended On-The-Road (OTR) price so you actually end up paying it.
 

DrEskimo

Registered User
We already pay one of the highest levels of fuel duty in the world and this would just hurt people more, not to mention haulage companies and anything company that sends stuff via the roads. I'm not sure there is a magic bullet to the issue, but ultimately we all need to pay more into the system to bring the road network back upto scratch and I think EVERYONE who uses a vehicle should pay their way. Just do £195.00 a year for everyone regardless of vehicle. Simples.

Again, this confuses road tax, which is paid through income tax, and the VED, which is a duty based on emissions. Everyone, regardless of whether they own a vehicle pays for the roads. Same way everyone helps fund the rail, NHS, police, fire dept. etc, regardless of whether they use it or not. I'm quite happy to see a tax increase if I actually saw the direct impact it had on infrastructure...sadly this is rarely the case...

VED is primarily to deter people from big polluting V8s and encourage low emission cars.
 

S32B

Registered User
This means the S3 Cab ...and then £810 every year for the next four years!
Where did you get the £810 from? My understanding is that year 2-5 will be a standard £140 and then an additional £310 if the car is over £40k = £450.

This part is interesting "Cars above £40,000 pay £310 annual supplement for five years", surely any cars that are just over the £40k mark will be getting a price drop or nobody will buy them!

The changes are good if you want a big engined used car, as after the first year it's only £140...370Z now is £500 per year to tax, buy a USED one registered after April 2017 and it will be £140, as the big hit will have been done by the first owner :)

media
 

jassyo06

T-Cut King !
THATCHERISM.....
 

DrEskimo

Registered User
The changes are good if you want a big engined used car, as after the first year it's only £140...370Z now is £500 per year to tax, buy a USED one registered after April 2017 and it will be £140, as the big hit will have been done by the first owner :)

media

It is a bit of a nonsense isnt it...same VED bracket as a Prius!

I agree with Desert though, people do put far too much weight on the VED. Whats a saving of £360 over a year anyway? Still going to sting you on the fuel!

Having said that, my S5 would of gone from costing me £355 in the first year, then £230 per year thereafter, to being £800 in the first year, then £450 per year thereafter....that might have made me think twice...
 

jassyo06

T-Cut King !
Where did you get the £810 from? My understanding is that year 2-5 will be a standard £140 and then an additional £310 if the car is over £40k = £450.

This part is interesting "Cars above £40,000 pay £310 annual supplement for five years", surely any cars that are just over the £40k mark will be getting a price drop or nobody will buy them!

The changes are good if you want a big engined used car, as after the first year it's only £140...370Z now is £500 per year to tax, buy a USED one registered after April 2017 and it will be £140, as the big hit will have been done by the first owner :)

media

Token example....Who the **** would buy that...besides the point really
 
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