Road Tax rates

[geek84]

Good Morning Folks

I hope you're all well. A friend of a friend was boasting to me the other day that he only pays £12 per year for his road tax. He has a BMW. He failed to tell me how he managed to reduce his road tax charge, even though I asked him repeatedly !!

Is this really possible?

Thank You

 

[Woody2Shoes]

It's hard to see current or historic rates that equate to £12 per year:

https://www.gov.uk/government/publications/rates-of-vehicle-tax-v149
It's possible he was over-simplifying (or talking scribble, who knows)...

 

[marcros]

the rates are quite complex because you need to know a few variables. I dont remember any form of road tax that was that low though, other than being zero.

 

[lurker]

doubt that it is that low but, my sons both have VWs and pay a third of the road tax that we pay on our Mini and Honda.

The reason is that they benefit from the fraud VW committed a few years ago. I am at a loss as to why the UK government have not been able to get the difference back from VW. it must add up to billions.

 

[Nigel Burden]

A few years ago there was a £20 rate. Our 2012 Skoda Octavia 1.6 tdi is £30, as is our sons 2016 Seat Ibiza 1.2 tsi. From 2017 some of these low rates were abolished and replaced with a flat rate of, IIAC £140. Some previously tax exempt cars such as the hybrid Toyotas were included in this. Our daughters 2006 Mini Cooper S Checkmate is something like £340 though.

Nigel.

 

[Terry - Somerset]

It may just be the monthly charge if you pay direct debit or standing order.

 

[Myfordman]

A few years ago there was a £20 rate. Our 2012 Skoda Octavia 1.6 tdi is £30, as is our sons 2016 Seat Ibiza 1.2 tsi. From 2017 some of these low rates were abolished and replaced with a flat rate of, IIAC £140. Some previously tax exempt cars such as the hybrid Toyotas were included in this. Our daughters 2006 Mini Cooper S Checkmate is something like £340 though.

Nigel.

There still is a £20 rate. Applies to my 2015 2l tdi skoda estate

 

[Lons]

He must surely have it wrong and it's a monthly cost but it still doesn't equate exactly to current rates as there is a % added on for credit payment.

£20 pa does still exist as that's what I pay for our 65 plate Skoda Citigo, My Merc is £145 while my wife's current Mini Cooper clubman is £125 and her new cooper hatch will be £140 after the first year premium loading.
68 plate motorhome is £165 so it is all a bit complicated.

 

[artie]

It's vehicle excise duty

I believe there is a £15 band but only for the first year.

Who knows, it's like everything else the gov messes with, it ends up nobody really understands it.

 

[lurker]

Recently paid our 2005 mini- £205

 

[DBT85]

I long for the days where my Superb doesn't run me £400+ a year.

 

[Racers]

Bike 750 petrol £80

Car 2.0l diesel £30

Not right is it.

Pete

 

[Phil Pascoe]

It's vehicle excise duty ...

Only because the income from it is no longer spent on the roads. Some vehicles are exempt, but no one without a vehicle on the road pays it, ergo it's a road tax. QED.

 

[Inspector]

Here it is in the price of fuel. Supposed to go back into infrastructure but most just goes into general revenue. More you burn the more you pay. Only real farmers get a break as they can buy fuel that is cheaper and has a dye in it that stains the fuel system. If it is in a BMW they get in trouble. If in the farm trucks no problem.

Pete

 

[Phil Pascoe]

Our agricultural diesel is dyed red. Southern Ireland's agricultural diesel is dyed green. Some smart arssse discovered that when the two are mixed, the colour drop out, so tankers started to to S. I. picking up say 50,000 litres then going through N.I. picking up another 50,000 and taking it back to Liverpool and selling it on as road diesel. It causes mega problems with advanced diesel engines apparently as it lacks the necessary lubricants.

 

[AndyT]

Only because the income from it is no longer spent on the roads. Some vehicles are exempt, but no one without a vehicle on the road pays it, ergo it's a road tax. QED.

The tax that was called Road Tax was abolished in 1937.

https://www.bbc.co.uk/news/magazine-23694438
But hypothecation is back.

This is from the Government summary of the 2018 budget:

5.3 Modernising transport
National Roads Fund – The government is delivering its commitment to hypothecate English Vehicle Excise Duty to roads spending, announcing that the National Roads Fund will be £28.8 billion between 2020-25. The Fund will provide long-term certainty for roads investment, including the new major roads network and large local major roads schemes, such as the North Devon Link Road.

https://www.gov.uk/government/publications/budget-2018-documents/budget-2018

 

[Lons]

I long for the days where my Superb doesn't run me £400+ a year.

Yeah me too, when I said mine was £145 I hadn't included the extra premium tax of £320 pa on top of that for 5 years.

 

[Phil Pascoe]

5.3 Modernising transport
National Roads Fund – The government is delivering its commitment to hypothecate English Vehicle Excise Duty to roads spending, announcing that the National Roads Fund will be £28.8 billion between 2020-25. The Fund will provide long-term certainty for roads investment, including the new major roads network and large local major roads schemes, such as the North Devon Link Road.

Sophistry, Andy, on their part. It doesn't mean in any way that income fron Road tax/Vehicle Exicise Duty is ring fenced for road expenditure/maintenance, and it doesn't mean it'll happen. It's a sound bite - what is the connection between V.E.D and the "National Road Fund"? I think we should be told.

 

[ManowarDave]

I long for the days where my Superb doesn't run me £400+ a year.

Top Trumps. £565/year for me.

 

[DBT85]

Top Trumps. £565/year for me.

For a Skoda though?