New road tax charging rules wont just affect EV OR just new vehicles, its retrospectively changes your tax band

Advertise with us
shop deals on amazon
UKworkshop.co.uk

Help Support UKworkshop.co.uk:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Sachakins

Sachakins

The most wasted of days is one without woodwork
Joined
4 Apr 2020
Messages
2,469
Reaction score
1,761
Location
ENGLAND
I don't think that many people realise that the new road tax/VED charges are going to affect ALL cars not just EV, even those already on the road and registered from 2017 to 31 March 2025, even pre 2017 affected, albeit to a lesser degree

I don't have a problem with the changes for 1 Apr 25, might not like them, but accept them, it's all the shenanigans for pre existing owners that I disagree with and wonder if it could be legally challenged for its retrospective changes?


This is excert from gov.uk site....

From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.

This new measure effectively removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.

How the changes will affect your vehicle​

Electric and low emission cars registered on or after 1 April 2025​

You will need to pay the lowest first year rate of vehicle tax (which applies to vehicles with CO2 emissions 1 to 50g/km). From the second tax payment onwards, these vehicles will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.

Electric and low emission cars registered between 1 April 2017 and 31 March 2025​

You will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.

Electric and low emission cars registered between 1 March 2001 and 31 March 2017​

These vehicles will move to the first band that has a VED value. This is £20 for 2024 but is subject to change for 2025.

Hybrid and alternatively fuelled vehicles (AFVs)​

The £10 annual discount for hybrid and AFVs will be removed, and the rate you will pay will depend on when the vehicle was first registered. If the vehicle was:

  • registered before 1 April 2017 - this rate will depend on the vehicle’s CO2 emissions (check the current rates for this vehicle)
  • registered on or after 1 April 2017 - you will pay the standard rate (this is £190 for 2024 but is subject to change for 2025)

Electric vans​

Most electric vans will move to the standard annual rate for light goods vehicles. Check the current rates for this vehicle.

Electric motorcycles​

Electric motorcycles and tricycles will move to the annual rate for the smallest engine size. Check the current rates for this vehicle.
 
Yojevol said:
What's retrospective about it? We're not being charged extra for previous years.
Brian
Click to expand...

It's not that you're going to pay missed years, People bought these cars knowing they would be tax free.
When the made changes last time, there was fury that existing cars that were exempt were to be suddenly taxable. It was queried than whether that was fair or legal. In the end the changes were only applied to new registrations.
Why not just do the same now?
 
As an analogy, using prison sentencing.

An offence carries a minium term of 5 years imprisonment.
From 1st April 2025 that minimum term is now 10 years.
And anyone still in prison on 1st April for that offence will have 5 years added to their remaining time.
Those who's sentences ended befor 31st March 2025 will not be affected.
So thats applying that new rules retrospectively to existing prisoners.

Can't see them getting away with that. But that's the same logic.
 
Sachakins said:
It's not that you're going to pay missed years, People bought these cars knowing they would be tax free.
When the made changes last time, there was fury that existing cars that were exempt were to be suddenly taxable. It was queried than whether that was fair or legal. In the end the changes were only applied to new registrations.
Why not just do the same now?
Click to expand...
It was Jeremy Hunt desperately trying to raise taxes without anybody noticing.
Starmer/Reeves now trying the same thing.
At least they can blame the tories, in fact they do it continuously; hearing "£20billion black hole" even more often than "my father was a tool maker". 🤣
To misquote Marx; "politicians blame others for the state of the world, the point, however, is to change it".

​

 
Last edited:
If people thought that tax free today meant tax free tomorrow then they trusted a government that they should have known well enough will change things as and when it wants. Do I feel sorry for them? No! They were sticking their collective heads in the proverbial sand. In a world where we as a country are raising less in tax as fewer people are smokers - an extremely good thing - we have to raise revenue one way or another to fund the politicians and civil servants rising salaries and pensions let alone the likes of train drivers and other striking 'important' people. (Rant over) Sorry if this forks (no that isn't a misspelling) the discussion into something 'political' - it isn't meant too.
 
Sachakins said:
As an analogy, using prison sentencing.

An offence carries a minium term of 5 years imprisonment.
From 1st April 2025 that minimum term is now 10 years.
And anyone still in prison on 1st April for that offence will have 5 years added to their remaining time.
Those who's sentences ended befor 31st March 2025 will not be affected.
So thats applying that new rules retrospectively to existing prisoners.

Can't see them getting away with that. But that's the same logic.
Click to expand...
What, you'd take a short prison sentence rather than pay raised VED? :unsure:
Depends on how much you value your time. What would be your rate for 24 hours in the nick?
 
To be honest, when EV's were first on the road, it was quite evident to me that there would need to be an incentive to people to buy an EV and for the EV market to expand so that the infrastructure would follow. That incentive was the ZERO rate. Now that the market is established it is self evident that the initial incentive is no longer valid or needed! This is basic common sense. It is not retrospective in any sense of the word at all!

And also we should note that a lot of these EVs are much heavier and bulkier and cause road damage! So I am OK with the standardisation of the Vehicle licence!
 
brocher said:
To be honest, when EV's were first on the road, it was quite evident to me that there would need to be an incentive to people to buy an EV and for the EV market to expand so that the infrastructure would follow. That incentive was the ZERO rate. Now that the market is established it is self evident that the initial incentive is no longer valid or needed! This is basic common sense. It is not retrospective in any sense of the word at all!

And also we should note that a lot of these EVs are much heavier and bulkier and cause road damage! So I am OK with the standardisation of the Vehicle licence!
Click to expand...
+1

Anyone thinking that the tax free incentives would continue going forward was living in cloud cuckoo land. As said, the government, whatever party was always going to need to find ways of replacing the huge amount of revenue gained from petrol and diesel as well as RFL. It has been argued many times and was always inevitable. Much more to come in the next couple of budgets.

I think the "£20b black hole" excuse is already way past it's sell by date.
 
There has been no drop in revenue from vehicle excise duty. The claim its fallen due to EV is false.
It has risen year on year since 2017, by around £300m per year to a total of £7.3b last year.
What the claim actually refers to is that the % contribution of VED to tax pot has fallen.

What the upcoming changes are meant to do is bring back, that % contribution of VED to tax pot.

I agree that from 1st Apr 25 all new vehicles should pay VED, its dragging in pre Apr 2025 I don't like
 
The policy has always been that you had grandfather rights, a VED was set at the time you bought the vehicle and any changes only affected new vehicles.

I think is amazing how a total disliked government is replaced by one that’s is now totally despised, that’s some record of achievement for nine weeks in power!
 
This evening I watched the Channel 5 programme about EV vs ICE (broadcast on Wednesday). Thought it used very unscientific methodology and didn't even mention any of the broader issues regarding extraction of lithium, disposal of same or flammability and cost of insurance for EVs or any similar problems with ICE whatever they might be.
The conclusion of the programme was ownership was similar, based upon time to drive 100 miles with a refuelling stop, acceleration and deceleration in wet and dry, stability around Mercedes test track, luggage space and the cost of purchase vs resale price.
Not a single mention of the broader environmental issues and impacts. Rubbish!
 
I've just checked my V5 for the emissions data gram per km. My hybrid car was registered in March 2016 and I haven't paid tax since I got it a few years back. When I saw this I thought "oh well I don't mind paying the £10-20 considering I've had a free ride for the past few years" but I'm surprised to see that my car still falls below the 100g per km threshold of emissions and so won't have to pay it still.
 
brocher said:
And also we should note that a lot of these EVs are much heavier and bulkier and cause road damage! So I am OK with the standardisation of the Vehicle licence!
Click to expand...
Cars, even relatively heavy ones, do hardly any damage to roads when compared to busses and hgv.

Wikipedia
Random other web site
 
Electric vehicles are not tax free at the moment. We need to apply for VED every year or complete a Sorn. Currently the price is set at £0 but if you bought an EV expecting that to always be the case then you're a fool.
 
deema said:
The policy has always been that you had grandfather rights, a VED was set at the time you bought the vehicle and any changes only affected new vehicles.

I think is amazing how a total disliked government is replaced by one that’s is now totally despised, that’s some record of achievement for nine weeks in power!
Click to expand...
I am sorry you did not get the government that you wanted Deema...... I disagree that it is 'totally despised'.
Given the truly awful state of the health, service defence, judicial and prison service, general infrastructure....& so on... it was inevitable that unp[easant decisions that had been put off by a number of prevoius administrations were going to have to be addressed.
You may disagree with some of the pay settlements... & loss of winter fuel payments..... but give them a chance.
Life is difficult enough without being surrounded by perpetual whingers....
....I am off to the workshop....there is a bit of oak that needs some attention.....that will cheer me up..........
 
deema said:
The policy has always been that you had grandfather rights, a VED was set at the time you bought the vehicle and any changes only affected new vehicles.

I think is amazing how a total disliked government is replaced by one that’s is now totally despised, that’s some record of achievement for nine weeks in power!
Click to expand...
Fake news or a very bad memory. That has never been the modus operandi with VED.
 
Triumph66 said:
The shortfall in revenue from VED can also be attributed to the reduced number of young people not driving or owning a vehicle due to costs of insurance.
Click to expand...
And the media would have you believe that the cost of insurance for all of us has spiralled because of the problems associated with EV accidents: batteries having to be replaced because of possible damage to same.
 

Latest posts

Back
Top