Electric Cars To Pay VED (Road Tax) & Luxury Car Tax
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- čas přidán 20. 08. 2024
- Electric car ownership is about to get a little more expensive. I'm also testing out this type of video so let me know what you think.
Website: www.ev-man.co.uk
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EVs are about £5-10k more expensive than their equivalent ICE car which means the government are getting an extra £1-2k in VAT too.. Everyone seems to have missed that one.
So what? Look how much the government rakes in from fuel duty
MG EV4 starts at £25,995
dont buy new then ;) i certainly wouldnt be. let the richie riches do that and then get it a few years later for half price :D
@@shawing Yeah and the battery will be shot
so what? They still wear the road out.
Your videos are informative and entertaining - a less formal "chat" about EV relevant topics as they crop up is great to a new EV driver like me.
Should this type of upload be in the members only section (as most people aren't really bothered?) or should I upload it publically like this video is?
Need your feedback!
Public, but I'm not a member :P
As it's informative should be public upload.
Interesting, Public would be nice, but I'm not a member.
Public for stuff like this, a quick reaction to a major event. Any delay to publication would soon make it old news relatively speaking? Happy for you to give exclusive access for other things and release for free at a later date but this sort of stuff doesn't fit that model: I'd have found the news elsewhere by the time you release it. Good video.
I like the format and the idea of a short 'news' update. I'd clocked the increase in VED announced today but missed the luxury car tax bit.
I'd like it to be public but this sort of thing could encourage me to become a member!
Over 6 years ago when the ‘luxury’ car tax was introduced, £40k was definitely a luxury car. 9 years will have elapsed by the time this change occurs and with 11.1% inflation and the substantial rise in car prices (actually above inflation), £40k is no longer a luxury car… it is a skoda enyaq with a couple of options ticked.
The fact that this tax will have sat at the £40k rate for almost a decade, whilst rampant inflation has dominated means it is becoming an additional car tax, because most cars will exceed that cost if you wait long enough.
Personally, I think it is an insidious and disingenuous policy.
Spot on John. I'll be sticking with our 2013/2015 Ice cars 99g co2 £0 tax for a bit longer.
The government said that it was apparently to "ensure those who can afford the most expensive cars make a fair contribution", but if you have to pay this 'luxury' car tax if your post-Apr 2017 car was over £40k when it was new, in what way is that a "fair contributon"?
I'll stick to driving my classic with historic status. VED £0, no requirement for an MOT and £100 insurance.
And it won't suffer a cliff-face dive in value, won't need an £8000 battery, and will still be worth what you paid for it twenty years from now. Good to see an intelligent person on here for a change.
Your classic car can go further as well
@@robloxfan4271 Well actually no! It only does about 18mpg with a 15 gallon tank so the Tesla beats it by a little bit. :)
@@djtaylorutube But his classic takes 5 minutes to fill up. The Tesla doesn't. It takes AGES.........
@@BibtheBoulder Not really, the classic needs to be driven to a petrol pump and wait in the queue, then stand by it while it fuels. The time it takes to charge the Tesla is as long as it takes to plug in. No need to stand by it waiting while it charges you see?
in the less than 1 year of me having an EV the incentives have already gone, i.e subsidies, discounts, wall boxes etc....the prices of public and home charging are rocketing upwards (yes, i know everything else is too) my point is, are we the only country active 'discouraging' EV sales? instead of incentivizing everyone to switch to EV's and are pre 2017 cheap VED cars going up too or will it be benificial to buy a £20 road tax Mercedes C220d auto or even Skoda Fabia 1.2 dsg (also £20 ved). this country has lost the plot.
Hardly discouraging we all have to pay in the end, beside EV's are imho not the way to go, Hydrogen is. Imagine whaht the seconhand market will look like in 10 years, don,t be concerned with mileage more " how many charging cycles does it have left before I shell out 5k on new batteries.
This criminally corrupt government never had a plot to lose!
@@Kresnov It's not which is the better fuel, its which is the best fuel for the job that the vehicle does. HGV's, plant/farm and busses would benefit from Hydrogen. Most cars will suit electric. The future surely is multi-fuelled.
@@Kresnov respectfully....2 things to mention, 1st....every battery will outlive the car by FAR (10,000+ charge cycles will still see more than 80% state of charge,...so circa 300,000+ mls before even thinking about replacing) the battery pack issue was a very short lived episode at the start of EVs. you are more likely to have to change a fossil fuel engine by that stage than a bettary pack on an EV......and 2nd..... Shell UK just quietly CLOSED ALL of its hydrogen filling stations, so they (hydrogen cars) are dead in the water in this country.
100% agree I’ve just sold my ev and we are just using my wife’s diesel mini £20 road tax very cheap to run. Can’t charge at home as I live in a flat and public charging prices are going through the roof some are charging nearly £1 a kw and half the time most chargers don’t work to much hassle and to expensive getting and only going to ge worse 🤦♂️
I would think by the time we get to 2025 the plans may change again, no point in getting too excited about it at present. Fuel duty in March 23 is set to go up by about 12p a litre, that is much bigger news!
I can see the daily mail now, a day before the rise, as if it was a shock; FAMILES BEING DRIVEN OUT OF CARS BY DISGUSTING DUTY INCREASE! SHAME!
@@salibaba 'Green Taxes' is just a nice way of saying that the poor won't have cars or warm houses. Politicians never talk straight.
Yes the 12p/litre rise means with about 1200 litres/year consumption for typical driver, nearly £150/year increase in costs. Imagine if they put £150 increase on VED, instead, there would be outrage.
@@johndoyle4723 let's not forget that the government charge VAT on fuel duty as well so we're being forced to pay tax on the tax. As for VED, mine has inexplicably gone up more than 70 quid since last year. If this continues, which I'm sure it will, very soon I won't be able to afford to go to work. Oh well, if I sign on at least I'll get an 11% pay rise!
The government will also have to reverse their ridiculous decision to stop sales of ICE cars by 2030.
Hi, I've always thought Car tax should be done by the weight of the vehicle as right or wrongly I've always assumed the more weight the more damage or wear and tear to the road surface. I appreciate probably very little if any of this tax actually goes to the roads. As always great video and relevant topic.
Yeah don't think it's a bad idea. I'd do it on a mixture of weight, width and emissions. Mostly emissions, I'm daily getting poisoned sitting behind 10+ year old diesel cars and vans, the things stink and need to be tested more strictly.
You should pay for vehicles you leave in the street by size, I used to live in SW London and the amount of pointless suvs making the roads single file.. madness
And then there is road pricing and low emission zones I am glad I will be retiring next year and won’t have to do 40k a year any more, without a company car it’s going to get expensive.
Are little Skoda EVs heavier than bigger deisel cars,due to heavy batteries?
It would be to bad if the tax you paid for your vehicle actually went on repairing the roads
For those with EVs pre Apr 1st 2017, here is the guidace:
Zero- and low-emission vehicles registered between 1 March 2001 and 30 March 2017, and which are currently in tax band A, will move to band B (currently £20 per year).
Useful.. mine is pre 2017 so it won't be £165 it'll be £20 then in 2025 correct?
@@hobbsytoob correct
@@davidsmonkeyroost Always winners and losers when they muck about with tax rates.
Mine is a 2016 hybrid but will it last until 2025 and beyond ? I wanted an all electric vehicle but the high initial cost, tax and the price of electricity is putting me off. I think I will buy a gas guzzling SUV.
@@grumblewoof4721 "high initial cost"...?
The cheapest Ford Focus 1.0i 155PS mHEV Estate with an auto gearbox costs £30,280 otr
The 250 mile, 156PS MG5 Estate EV with its standard auto gearbox costs £30,995 otr
It's often overlooked, but combustion-engined cars are just as expensive as EVs...!
Your immediate take on news like this is always more than welcome 👍 I'm glad it's not the per mile nonsense.
I wonder if that will be a separate policy? VED on EVs won't recoup enough income to the treasury when faced with diminishing fuel sales. I think there will need to be some additional method of paying for the roads/bringing in cash to the treasury/sucking cash out of the motorist.
Per mile is the only long term method
@@stuartburns8657 Seems the fairest approach. Pay a fee for the driving you do. But the Tories don't believe in fair so it won't be as straightforward as that.
@@chrischild3667 No, you're right it won't be simple Chris, it'll be a damn mess, but 35 billion is a big hole to fill
@gilburton thought that was more to ensure grid load was more evenly spread
Thanks for the video.
The lack of VED was always going to be a means of tempting us to take up EVs. This is the thin end of the wedge though. We will end up with segregated electricity feeds to charge our EVs so they can charge extra duty on electricity too. This is to accommodate the tax shortfall as we transition from ICE to EV. If that doesn't happen (it will) then HMRC will tax us somewhere else instead.
The luxury tax will possibly see a surge of car sales before the deadline to avoid the cost, but it will be interesting to see if lead times have come down by then as assume if orders get delayed so it’s effectively registered later then the cost would apply. Don’t think road tax will make a difference, nice while it lasted but not a key factor for me when I got my EV
surge in EV cars sales...just in time to see our significantly improvement in the charging infrastructure...not . get ready for long queues if you use public chargers.....only in the uk can we cock this up in such a big way.
So if you buy one before April 2025 do you become exempt? Was a bit worried my Model 3 SR (that was list price of £39000 when I aquired it 2nd hand in 2021) is now elgible for this luxury tax.
@@markyates5744 No, whilst you will have to pay the Excise Tax (VED) the luxury tax isn’t back dated. Pleased about that as book on my Enyaq was 49k, same spec now well over 55. Hopefully the upshot of this will be to usher in the era of smaller cheaper EV’s which for 90% of people would be all they want or need.
Please be careful ! czcams.com/video/lQxY2s-oIak/video.html
@@lynnfisher4396 Payed 11K for my second hand car a decade ago 49K for a car that's mad.
Speaking for myself, I would like to see this out in the open. These things are important to discuss. Thanks for all your work on your channel! :-)
Happy for you with this type of video . Just as long as it doesn't add any more pressure on yourself. Thanks for the content
VED isn’t an issue, all other road users pay it. What the issue is,IMHO, is changing it whilst having older cars still paying the old style VED rates whilst polluting more.
If you want to change it, change it for everyone.
Agreed
Agreed
Thank you very much for this information. I've currently got a almost 9 year old VW BlueGT which I pay £20 road tax on. It's also ULEZ compliant. I bought it almost new, barely any miles. Now on about 51,000.
So I've been looking for a new car at the moment and was considering possibly going for an EV. But this is just another thing (on top of poor infrastructure, especially where I live) that might convince me to hang on a bit longer.
Buy yourself a nice used Bentley. Way more fun than a BlueGT
@@BibtheBoulder The BlueGT is actually pretty fun. It handles really well and is pretty nippy at 0-60 in under 8 seconds... Plus it's actually gone up in value since I bought it. They're pretty rare and sort after now due to the low emissions, but still having good performance.
@@HonestWatchReviewsHWR If it makes you smile, then that is priceless....
@@BibtheBoulder Absolutely.
@@BibtheBoulder And the Bently will still be a great car long after the battery on the EV is dead and burried !..
This should be uploaded publicly. Everyone should be bothered by this news.
It’s not the worst piece of news from the budget
Do you think electric cars should be taxed at all for using the roads?
Serious question.
So Dean, if you could click you fingers and all ICE cars were suddenly converted into EV's, we'd still have congestion and a 36 billion yearly black hole.
With all these heavier vehicles on the road?
This was always on the cards, it was when not if
@@stuartburns8657 So Stuart, my point was everyone (all EVM subs) should know about this, it's good info for people interested in electric vehicles. I don't mind paying a fair amount of VED for my 2 BEVs. Have a good one.
@@unclefista yes they should. Firstly it should be a road tax, as in the taxation on EVs should go towards maintenance of roads. Whilst many think vehicle tax on regular cars does this, it doesn’t. Vehicle tax is about emissions, roads are paid for through local council taxes and the government for motorways. EVs still use roads regardless of whether they’re “environmentally friendly” (I’ll get onto that in a sec) so a tax to make them pay for it is entirely reasonable.
Secondly, whilst EVs don’t put out any harmful gases, they aren’t really environmentally friendly. Excluding them from vehicle tax is fine because that’s about direct emissions produced by a vehicle , but EVs still contribute to green house gases both in their use and their production. Firstly due to the elements required for the batteries and their production EVs have had components shipped round the world 3 times before they’re even built. Secondly most EVs are built on aluminium chassis for weight saving. Aluminium has to be heated higher than steel to be melted and used so there’s a shit load more green house gases there to. Finally power. The U.K. power grid is not 100% renewable, it never will be unfortunately because unlike Lesotho or Iceland (currently the only 2 countries in the world that use 100% renewable energy sources) we don’t have enough hydroelectric (dams) sources or geothermal sources to be 100% renewable. We could build more nuclear power which is a much greener source of power than its perceived to be, but things like Fukushima makes people scared of it which is strange because nuclear is actually relatively one of the safest forms of energy production.
EVs are great in a lot of ways, but they aren’t going to save the planet.
Make more of these videos. Because they're easy to make make them public, grow the channel. Look at the Electric Viking who releases about 5 short informative or opinion videos a day and his channel has exploded! People love EV news and updates.
Love this kind of video Andy .. when timely as now it reflects the conversations I've half had with some non EV work colleagues today, except your take is useful and sensibly thought out as always. Not too often, but when it feels relevant as today .. 👍Pete
I just replaced a 10 year old diesel which was £25 a year as it was low emission but now the much lower emission Niro EV will cost far more in VED. I'd have thought a specific EV rate which could have been cranked up over time (even potentially starting sooner) would have made more sense.
Our '56 plate fiesta diesel £30 pa.
Our 2016 diesel Nissan Qashqai £20 pa.
Ironic eh
Agree my brother drives a 10 year old Mazda diesel and pays £30 a year. We drive a Leaf should we change now for a government subsidised diesel?
@@andyt1048 lol. I guess if you got ££££'s off from the tax payer, a little road tax won't kill early EV owners
@@stuartburns8657 My Rolls Royce cost me £630.
@@andyt1048 Realising you've been conned?
Electric Vehicle Man EXTRAS
I love these little extra snippets, keep them coming.
Very informative- thanks for taking the time. Really liked the format.
Always happy to see your take on what's happening and how it could impact us in the car & home efficiency world. Things like this & the quickie you filmed at Morrison's, would be ideal little additional videos to the usual Friday upload. Don't expect them every week, or even every month, but would be happy to see little pop-ups every now and again with interesting little titbits and updates. Best wishes
Yes, expected and in big scheme of things,no big deal.
But....puzzled that there Will be petrol/deisel cars about,like BMWs that will be paying £30 tax?
My 2 diesels cost £20 and £30 lol
@@stuartburns8657 let's hope Mr Hunt doesn't twig he's slipped up and bring these taxes into line also.
@@alanrobinson2229 LOL, aye, but he'll not do that.
Ppl crying being able to afford 40k EV's which were subsidised by ££££'s really have little cause for complaint
@Stuart Burns I'm curious as to where the subsidies you're referring to come from, given that the ev incentive was done away with a while ago? 🤔
@@mcdon2401 No need to be curious, you are correct they're now gone.
But man maths says if you saved 3k on your initial purchase, that's the equivalent of over 18 years EV Road tax.
Basically I don't think the cake and eat it brigade have much cause for complaint
One _very_ important point to remember is the Expensive Car Supplement applies based on the List Price the day before registration - it doesn't matter if you have had it on order for the past 12 months because of backlogs or if you managed to negotiate a £1000 discount.
Also options included _at time of purchase_ are counted but not anything added afterwards - i.e. if you are wanting the Tesla FSD if you add it afterwards it won't count.
I've been waiting for my summon and self park to work for the past three years, so I have little hope of seeing FSD happening for at least another 3 years.
The government said that it was apparently to "ensure those who can afford the most expensive cars make a fair contribution", but if you have to pay this Expensive Car Supplement if your post-Apr 2017 car was over £40k when it was new, how is that a "fair contributon"?
You should continue this type of video as they are easier for you and concerns all EV drivers. Especially for large breaking news. Public is fine for these as well!
I do find it crazy that we will also be forced into paying the luxury car tax as most family sized longer range are all over £40k This amount needs to be over £50k in my thoughts, as car prices in general are now higher.
If all EV's paid just £165 I believe that would be fine and then add additional charges for anyone not in an EV. That would help as an incentive to get people to an EV.
What is the purpose of the Expensive Car Supplement at all?
why should I be forced to buy these crappy overhyped cars
Yup, this is a useful video, all the news has stated is that electric vehicle tax is coming in, so as far as I'm concerned, you probably explained more than any news channel, so I would welcome the extra videos, especially when they explain what the news stations don't.
One thing that puts me off buying an electric vehicle is that I have nowhere to charge a vehicle, I have a shared drive where it can be a free for all, I have a Smart ForTwo diesel which I can park near enough anywhere, handy as I live in the centre of town, I can do two weeks commute on a thankful of diesel, and at present I don't have to pay road tax, with electricity prices rising, using a public charger would be more expensive than running my little Smart, added to that, the public infrastructure in the town where I live, two chargers in a car park that charges £5 an hour for parking, add on the cost of charging, I work shifts and the car park closes at night, I would need a vehicle that would be able to cover at least 350 miles so that I could charge on my days off, incidentally the next nearest chargers are further away from home and work, there's nothing on route, as my average working day is around 15 hours, I wouldn't want to stop and charge up on the way to or from work as a 15 hour day means I'm normally up for 19 hours allowing time to get up or settle down, obviously ablutions, and travel time to and from work, at present, there's no incentive to go electric.
You know my feelings, since buying an EV. I don't mind paying road tax (if they fixed the roads) but not retrospectively. As EV's are really expensive, then the luxury supplement is just robbery. I've just ordered solar panels and a battery. How long before we get taxed for paying to produce your own electricity.
I am really thinking of swapping my EV when the lease expires, for an old diesel luxury car.
It's the retrospective bit that annoys me. Yes, new car I have no issue with paying VED. You buy the car knowing the running costs.
But no other vehicle has had its VED rate changed when new legislation has been introduced. My daughter has an old C1 and still pays £0. She's not had to suddenly pay £165 since 2017. So why the retrospective change for ev's. Because we are a relatively small segment (circa 650k) so the government can get away with it.
It's not "road tax" it's vehicle exercise duty. The roads are repaired (or not) using money paid by all taxpayers, whether they own a car or not.....
@@barriewilliams4526 It's been called lots of things and the latest reason to keep increasing it was based on 'emissions'. That seemed reasonable, you put out lots of carbon stuff and then you pay for it. Now you have them effectively saying, no it's VED. So my EV that I bought in good faith (and regret), will be retrospectively taxed. However, my friends petrol car taxed at £0 will not. This Government are just a bunch of wide boys.
In the sad absence of driving ohm, an occasionally regular stream of Yorkshire blather would be most welcome in my opinion, members only or otherwise!
£165! I only paid £30 a year for the crappy 8 year old diesel I got rid of last year!
Yeah it was ridiculous, government should have increased the rates gradually on these vehicles.
Agree something is going very wrong.
But that "crappy" old diesel would now probably begin to cost you a packet in ULEZ charges, if you regularly drive into a town or city.....
Happy to see news videos.
Did not know about the stealth tax on £40k+ cars. As for having to pay VED it seems one less incentive to change to an EV. Sure they were going to bring it in at some point but it should have a lower rate than ICE vehicles. Personally I am spending my cash to make the house gas free; will move on to transport options in a few years.
There should be two sperate taxes (or two very distinct parts):
"Road Tax" - Paid for by everyone regardless of emissions (at a rate of e.g. £120).
"Vehicle emissions tax" - Using a similar increasing scale as just now based upon emissions.
This has the result of ensuring all road users pay for the upkeep of the roads we share (which is morally correct) and increases transparency and incentivisation of lower emission vehicles.
A nice addition to the VED reminder letter from the DVLA would be a graphic similar to a building EPC showing how much money and emissions could be saved. Hopefully this would act as a reminder that lowering emissions is a good thing for the planet and for the pocket.
There will be a new government by 2025. They can (and probably will) make changes to future tax plans.
I'm surprised they are making changes to the VED for older vehicles. When they last tried to do this there was a massive row and it's why vehicles pre 2001(?) have a VED that is not related to emissions.
Well said. A labour government (looking likely) will tax the hell out of EV owners as most of the people who vote labour probably can't afford to buy an EV.
Didn't they also sneak an increase in fuel duty by 20% in March next year? Still makes EVs sensible if you can afford them. Enjoyed the video and think you should keep these little informal ones going
Yes they did and it seems very few people know it.
23% 😢
It won’t happen.
Not now that the lecky price has doubled at home plus the rip off charging points (I think there are 5 within a 50 mile radius of my house ).
Well actually 23% putting around 15p on a litre of fuel including VAT !!
The thing I feel is unfair is if you have a dirty diesel which has falsely low emissions but registered before 2017 you can still be paying between £0 and £30 VED which to me should also be increased
My aunty's audi a3 1.6 diesel on a 16 plate pays zero ved
This was bound to happen. The car industry has cleaned up a huge amount in 20 years, but nothing is enough for governments.
Your car could emit pure air and one day they’ll find it a tax bracket to sit in.
Like the video idea. My biggest concern is not so much the VED or luxury car tax but how they plan on recouping the lost fuel duty, which is a massive amount, once we go full EV. Will it be a pay per mile tax or a tax on your electricity bill.
I've been thinking about this, and you will be taxed on the amount of fuel (electricity) you put into your vehicle. So, either your car or charging point will register the amount and inform said government department who will then bill you. This would mean that you could still utilise solar etc. for home use without incurring fuel tax. Public charging taxed at pump, like now.
We pay VED to fund big oil investment and subsidies for exploration, when we don't need to subsidise big oil we will all pay less tax.
turns out the green levy wasn't a green levy it was subsidising expensive gas when renewables were 10 times cheaper,
but remember after all the profits energy firms walk off with you will have to pay to decommission all those oil rigs.
@@Hell-Hound1hard to imagine how you’d be able to actually enforce that, certainly with the current day fleet. Road use charging is more practical.
@@edc1569 most cars ice and evs have onboard computers which log all sorts of information about your car. Economy, speed, location, so they have all the info. stored up just ready to access. Over the air updates etc will become the norm., so at any given time this can be sent wherever. It could even be added to your electric bill under an ev tariff with the duty already added on. This is how the government could recoup fuel duty lost from ice cars. The pay per mile can't separate regular household electricity usage from ev fuel usage, for tax purposes. A pay per mile tariff will probably be implemented also, just because.
There are 32.5 MILLION cars on the UK roads.
Our government wants them all gone by 2030. This leaves 370 weeks. Divide 32,500,000 by 370 and you get 87,837.
Divide this by the number of days in the week and you get 12,548.
So, every day, from now until Jan 01st 2030 we need to be producing and selling 12,548 electric cars PER DAY.
IT WON'T HAPPEN.
I also don't have a major issue with paying ved as long as its reasonable. Clearly the roughly 4.5k in import duty plus almost 9 grand in vat I have just paid on my new ps2 isn't enough for our fiscally responsible government. Shows what backers fishi rishi has. Rot a little demand for evs then as 2030 approaches gov has an excuse to roll back the petrol and diesel ban.
Given this country's record on getting anything done on time doesn't bode well for the EV charging infrastructure to be in place by end of 2029, which is about the time that the general election after next will be looming. Whichever party is in government at that time will look at the option of going ahead with the current timetable or kicking the deadline down the road; the one that they determine that affords them the most votes is the option they will choose. So, imho, it will be the latter: votes trump the climate.
Yes, keep your videos coming for general public consumption. Very informative as always, and balanced.
I am not a regular viewer of your channel, but I saw the title for this and wanted to see it, and hear the information. I also am NOT an EV owner or intending to be, so from that standpoint you look to gain more viewers that have a passing interest in what's going on with EV's, the laws and its meaning relating to EV's as that also points to what's possibly coming down the road for combustion engine users like myself, and also would NOT be paid subscribers. Hope that makes sense, and thanks for posting the video, I found it interesting and informative.
If you don’t mind paying tens of thousands for new cars YOU CAN AFFORD TO TAX IT
Many people these days don't "pay" thousands for new cars, as they are usually acquired via personal leasing or PCP agreements.....
It's fair to say if you can afford a 40k + car you can afford to pay the luxury tax. However buying the car second hand 3 years later you still have to pay the remaining 2 years. This is a much bigger disincentive for the second hand market.
If I was spending £40k on a car I wouldn't waste it on a pile of crap EV. Nope, I would buy me a Bentley. Complete with its gas guzzling 6 litre engine.
@@BibtheBoulder And you could adapt it to clean burning methanol.. Great idea.
@@longriderxx Or you could just run it on petrol.
@@BibtheBoulder Until THEY ban it for road use !
@@BibtheBoulder P.S If I had the resources I would have the w16 and run it on nitro methane and avgas .. Oh baby
Really like this style of video to capture latest topics. No one else does it anymore.
All the channels are just reviewing the same cars, main reason why I haven't watched an EVM upload for a few weeks before this one
quite right too, plus all congestion charges
For me, the most unfair thing about this is the retroactive tax increase on cars already bought.
I can't remember this happening before.
Yes but clearly this channel is earning the creator to much money that he on one hand installs a battery to save on electric costs, yet on the other hand is pro retrospective fees and additional costs to EV users as it's OK, because everyone is driving a 40k car... This bloke is out of tune with reality, become a Muppet.
Is it actually retroactive?
If you bought a car in 2018, and they suddenly demand you to pay VAD for 2018, 2019, 2020, and 2021; that would be retroactive.
The anual tax is applied i the future, not for the past.
If someone believed they could get an EV and be exempt from any future anual tax, they believed in a fairy-tale.
Don't get me wrong, I don't defend anual tax on EVs (yet), we need more options and price parity first.
@@thorbjrnhellehaven5766 *retrospectively, today they decided that my zero tax 2015 that was sold as a "zero tax" car. Will now be a taxed car as the government has decided to for the first time ever, apply a tax change retrospectively.
@@isoconfused8744 the rate for other cars are not carved in stone, they increase with the budget too. Its not like, if you have a 20 y.o. car you still pay the same. Believing that the anual tax amount would stay at zero was to belive in a fairy-tale.
It's not like you were promised zero tax forever, just that the current anual tax was zero.
I agree if you say it's way too early to increase tax on EVs, but it's not retroactive.
In Norway, the anual tax for EV was zero from July 2001, then a low rate in 2017, zero again in 2018, medium rate in 2021 and full rate in 2022.
Everyone expected the anual tax to be more than zero at some time. It was accepted to be a temporary incentive.
The current anual tax on (most) cars (including EVs) in Norway is NOK 2975 (247 GBP, 284 EUR, 294 USD).
Petrol, road tax, insurance...they all go up. They are for the year ahead not behind. Otherwise everybody would be driving around in 1030's cars. A few cars get to be cheaper to run Historic vehicles for instance, and their value goes up a bit to suit, although they tend to be less efficient being older technology.
I've enjoyed this "extra" video, very informative. In view of the extra cost of an EV over a petrol or diesel equivalent it would be more sensible to have the "luxury" car tax starting at a higher figure, say £50k. One thing to watch out for is list price creep, I have a one year old RAV4 HEV which is taxed at the normal rate (with a £10 discount as it is a HEV). Some on the RAV4 ordered a new one with a few extras, keeping the price below the £40k limit, only to find that by the time it arrived that the new list price is above the limit and so are stung with the increased tax.
We already have luxury tax hike for cars over a certain retail price.
@@SynisterNation But this didn't apply to pure EVs, many of which are over the £40k threshold for a fairly typical family car, not a luxury one. This will wipe out a fair chunk of savings of running an EV over a petrol or diesel car
@@dohrider well at the point of purchase there is already a bigger carbon footprint for EVs, makes sense that owners should be tied to the same rules as all other cars. Over time I know it is better for the environment but we aren't there yet.
The government said that it was apparently to "ensure those who can afford the most expensive cars make a fair contribution", but if you have to pay this extra luxury tax supplement if your post-Apr 2017 car was over £40k when it was new, in what way is that a "fair contributon"?
Love the tech, hate the price..... If I paid so much ££££££.... For an EV after the gov push to clean transport I might be a bit bitter at getting punished for doing so.... Glad I stuck to my dirty diesel.(bought for £100....seven yrs ago.... Still going strong)
Firstly this type of video is really useful so please continue when anything happens that affects EV drivers.
On the luxury car tax, I think this is going to cause some confusion to new car buyer after April 2025. My reading of the government website implies that in year one you pay £165 because the luxury tax for year one is based on CO2 emissions "First tax payment when you register the vehicle
You’ll pay a rate based on a vehicle’s CO2 emissions the first time it’s registered." Then year 2 onwards for 5 years you will pay £165 +£355 (£520). So some could buy a new car and be told the VED is £165 only to find it's £520 from year 2 on.
I’m would like this type of video to be public. I think it would be very beneficial to most ev owners
Thanks, I have no problem with paying an appropriate VED, maybe slightly less than ICE cars, but not massive, but either way if you can afford an EV, you can afford the VED.
The Luxury tax will have an affect, look out for the Tesla tax beater model list price sub £40k, and then go and buy all the extras later, not just Tesla of course.
You could have all the extras factory fitted, but not activated at registration, and buy them later.
Good bit of content although we already pay 15% tax when using public chargers as the VAT rate is set at 20% whereas when charging at home its only 5% QED 15% fuel tax
As a lot of people have said “it was only a matter of time b4 road tax was introduced to include electric vehicles “. Due to the battery packs that take up the full width and length of the floor pan of an EV, the car is heavier than a conventional internal combustion engine vehicle and so the road surfaces will develop increased damage over time so I guess applying road tax to EV car was an inevitability. The other point to mention is tyre wear, as the heavier the vehicle the more friction and heat developed at the tyre surface, so the tyre manufacturer’s are very happy to see EV sales increase.
An interesting take and informative video and I would be happy to see more. I think public rather than private as it might appeal to more people who might then subscribe and then might become members.
Do more like this. Stick it for everybody. Doesn't need polish. Just needs to be important and relevant.
I like the analysis and the breakdown. What should be asked is this: Would owning an EV rather than an ICE car be a wise choice in 2025 given the current announcement if you don't have the ability to charge your vehicle from solar at home but depending on the grid or existing charging network. From what I can see, the incentive to be one of a small percentage of EV users compared to the huge number of ICE vehicles still in circulation by 2025 is not compelling enough.
The irony is that ICE vehicles, especially secondhand ones, will be more financially compelling and say "to hell with the environment". The petrochemical companies and the government are sleeping in the same bed together, why should we be the ones who solve their problems for them. They have to breathe the same air and live on the same planet! This is from an EV and home solar owner.
Enjoyed the video,please keep these open,the channel is great, thanks.
Trivial??chat - if anyone doesn't want to watch it, they can just skip past or delete it.
The VED, on top of the raging inflation and lack of availability - both of cars and public chargers - is another nail in the EV market's coffin
Video was good. Interesting to hear your opinion. I don't think it takes away from the channel's value, do more when you think it's relevant and valuable.
My I3 rex was registered 31 Mar 17 from what you have said I've still should be £0 VED which if how things work out be a huge bonus
3 points, 1 yes please on the spot news is always welcome, 2 that £40,000 point is a bit of a stealth tax as it has not moved over the last few years and 3 this is the first time that road fund licence has been retrospectively apply as if you have a older ICE car you only pay the taxes set at the time !! Good old Tories don't you love them not.
Useful info, I'm happy to watch short videos like this, keep up the good work
I like these updates... Definitely support & like your style and honest reviews. Keep them coming. 👍
Yes to the quick news updates - whenever something worthy happens. Maybe members only for a few days and release to public whilst still relevant?
As for the announced changes, yes to the VED, no to the 'luxury / expensive car tax'. Should have at least increased the threshold, £40K isn't a particularly expensive car in EV land, and certainly not luxury. Have it on Model S's, E-trons and Taycans, not NIssans and Skodas.
The government said that it was apparently to "ensure those who can afford the most expensive cars make a fair contribution", but if you have to pay an extra luxury tax supplement if your post-Apr 2017 car was over £40k when it was new, in what way is that a "fair contributon"?
I came here as soon as I found out to see your thoughts. Thumbs up for extra videos for these news stories for all general public👍
It’s a very strange way to calculate tax but just shows that the government are all out of ideas when it comes to taxation on personal mobility, but it seems their plan is to just tax people that can pay. Long gone are the days when you would pay based on how polluting your vehicle was. I have an EV that’ under the 40k threshold but would like to change to a Tesla but don’t know if I would give that I do low sub 6k miles a year as the tax will be a significant part of the cost per mile. But I also keep a 20-year-old camper and pay £320 tax a year if I don’t SON for some of that time, I do less than 2k miles. In some ways pay per mile could be a better option at least then it would be a simpler tax to understand and down to what you do not when and what price the car was when it was new. Yes, keep these videos for all you are keeping us up to date with interesting developments.
Happy to listen to these short vids. Please don't make them private...these little snippets are great.
VED is a massive con anyway. The government claim it's based on emissions, not true, a guy I work with has a 2013 vauxhall insignia 2.0 petrol which costs over £200 a year to tax. He also has a 2011 BMW 2.0 diesel which costs £30 a year. My volkswagen passat 2.0 diesel now costs £296 a year. Absolute farce.
Inevitable. They can’t live without stupendous levels of tax.
It was inevitable. However £165 is more than I spend a year charging the car to drive it at present… the luxury tax is definitely making things unpleasant as it’s actually a lot of money - 40k is not a reasonable amount to class as high cost when most new cars are over that amount. I’ve got a 2019 Model 3 and now wonder if I just keep it eternally as it was the most expensive car by more than 3 times the amount my previous car cost and was a very difficult but planned purchase. These news would make it basically impossible to afford it… means having to buy a less desirable car
I have a problem with paying tax. Handing over money to those lazy, unproductive criminals is something I will try to avoid. Thanks for the warning.
In Victoria, road maintenance tax is 2.6 x my energy cost per km.
Instead of $300 I’ll now be paying more than $1000 pa for the 30,000 annual kms.
Very welcome vid EVM as you're a highly trusted source.
About bloody time! EV users have gotten away with it for far too long. Same as the 'free' electricity at supermarkets that every other shopper has had to pay for via increased prices, whether they have an EV or not.
@@andyturner5389 haha, let's hope so!
Why should electric powered cars be cheaper to tax than petrol / diesel powered cars the power plant is irrelevant its the size of the vehicle and at the moment tesla 's etc are decent sized cars ( I know there are smaller electric cars out there ) if you can afford £55000 for a car you can afford the road tax .
At the moment there are three groups of VED. One for cars & light goods vehicles registered before 1 March 2001, another for cars registered between 1 March 2001 & 31 March 2017 and the third group is for vehicles registered on or after 1 April 2017. Within each group you have the various bands and associated costs. I have emailed my MP to ask the Chancellor when EVs start to pay VED, will the same rules apply; i.e. EVs registered before, say, 1 April 2025, will remain exempt from VED whilst cars registered from 1 April 2025 will have to pay. If that makes sense to you, please email your MP.
I'm surprised that EVs got off quite so lightly today, and it being delayed so far into the future in 2025 - I note just beyond the end of this government.
TBH I expected the £2500 grant to be up for question or the £35k threshold reduced to encourage lower prices.
As I see it, eventually the Treasury are going to need something like £2500 per annum tax revenue from each EV, so something will be gradually coming in and it will be aligning overall with a little less than petrol/diesel cars to preserve the incentive.
Why delay? Get EV sales up, especially as renewable electric is ramping so fast, small contribution to a reduction in oil demand, wait for charging infra to catch up, including public and grid, allow the Smart Grid to get further to allow EV use as house batteries, or to ease phased charging - all kinds of possibilities. Perhaps calculated to allow the Govt to claim to be even more a 'world leader' in greenery than we are already in many areas, or other propaganda purposes.
I'd go for tax weighted in favour of efficiency, greenery, and small size - so a combination of weight, materials, economy (miles per kWh?) . And to cause a drastic downsize in the huge cars we have on our roads; this is not Texas.
Revenue slanted to encourage home or nearby solar use would reduce strain on the local electricity grid.
The trailed "23p extra duty on petrol/diesel" sounds like cover for a smaller hike ("we are hitting fossil fuel cars harder") in EV taxes in March.
ATB everyone.
The grant was stopped ages ago.
@@ElectricVehicleMan
That's interesting - I saw an article from 2022 saying it was still available - though at a more cut level.
But looking around a bit more I see it has transitioned to charger support, which seems logical.
I have had my 'granny x 2' charger in the garage since all the neighbours had them back when they were free , but I'm still waiting for a decently priced EV that can take a house door flat in the back, and sometimes tow 2 tonnes.
Cheers for the channel.
Please keep free and keep these coming - especially this subject - cleared up some confusion around the expensive car tax for one!
Like many countries you have too much tax all together. EVs are not particularly green so I don't see a reason to tax them any differently. Many think electricity comes from princess faries but it mostly comes from burning coal natural gas and oil. It takes 70 lbs of coal to fully charge a Tesla.
Very nice cars, fine alternative; but no need to subsidise those who can afford one with the taxes of someone that can't.
please continue with these videos for everyone, thanks!!
It was always going to happen, after a certain percentage of EV's , as they were free from hybrid ranges . And its fair , as the sales expected for the next 3 years. And really roads are used by all, so you need to pay up
when I lived in the uk my 735i Bmw cost 185 quid to tax, here in Ireland it was 1600.00 euro to tax. there are many bands for the engine size, starting under 1000cc is 199.00 and the highest 3001cc being 1809.00. cars over ten years old are penalised by insurance companies for being an old car and can be 10 to 20% more expensive to insure. in 2008 the road tax system changed from engine size to emissions based. a 2.0l engine went from pre 2008 710.00 per year to 280.00 based on 130 to 140g/km a year. any car with emission's over 225g/km is charged 2,400.00 euro. EV's are 120 euro a year and it goes up from there based on emissions, same as the uk, with many bands to charge more.
When I fill my cars tank (circa 60 litres) the government gets £41:72p in tax, which the government needs to fill it’s coffers so when more EVs hit the roads the tax take will remain the same because they must put up the VED to compensate for the lack of fuel duty & VAT, simples.
YES I am happy about it because although I don't like paying tax not only to this government but to any government but I find it very insulting that electric vehicles do not have to pay road tax when I as a petrol driver do especially since they use the roads as well so why should they not have to pay it
I like this style of content, it brings news to the masses in a digestible format with hopefully not too much of a time overhead for yourself.
The government said that the Expensive Car Supplement was apparently to "ensure those who can afford the most expensive cars make a fair contribution", but if you have to pay an extra luxury tax supplement if your post-Apr 2017 car was over £40k when it was new, in what way is that a "fair contributon"?
New EVs only.
I wrote to my MP and started by saying I was unhappy with what was being referred to as the Tesla tax i.e. the extra tax above £40k car price NOT that I was against some levy - £250 maybe. But the additional amount is just punishing EV owners. I pointed that I paid £12k VAT on my car and got no help on the home charge point. I travel from the south coast to customers as far north as Cleveland and I explained that my choice of cars in the end came down to distance between charges. Cut a long story and several emails later his response was and I quote "I see no reason to treat EV owners any differently to any other car driver". Never mind I thought I was doing my bit for the planet and reducing the pollution that's causing the increase in lung disease in our our children. Needless to say he won't be getting my vote anytime soon.
Given that electric cars are generally heavier and thus are likely to wear the road faster this has been a long time coming, especially as they have been subsidised by tax payers both at the point of purchase and every year through the free VED which is now to be cancelled.
The higher purchase price of the EV would mean that the EV owner pays a lot more VAT £1k-£2k. So it wasn’t really subsidised at purchase.
I'm all for an extra video every now and then. As has already been said; you are informative and entertaining. Keep it up.
With VED at a flat rate and too include electric there is now no incentive to buy a smaller or electric used car. A pre 2017 car would get cheaper annual payments if it produce less or no CO2. By 2025 a used 5 year old Leaf will pay as much VED as a 5 year old Humvee.
I like this and when there is something interesting to talk about definitely go for it. The Luxury Tax could also be looked at as an SUV tax and car companies will look to get their pricing under the 40k cost wonder how many will come out at 39, 995.00 with options to avoid the tax. Though the Chinese EV car makers will be rubbing their hands as they generally are lower priced and under the 40k threshold. But it is only fair the incentives and such cannot last forever but it has to be fair so the same for both ICE & EV.
No problem with paying a VED BUT it should also have an element for pollution/CO2, so £160 is fine, but PHEV's at £200, and the rest at £250+ depending on emissions, would work better.
What you EV drivers got to think about in the near future is there will be a massive loss in fuel duty with the uptake of EV's.
This massive loss in fuel duty will have to be recouped by paying pounds per mile with compulsory black box technology fitted to your car tracking your average speed and your every move, plus the double whammy of paying high electric prices to charge your car.
So don't go thinking its gonna work out cheaper for EV's in the future than a petrol/diesel car.
You have to reject this technology and go back to a combustion engine people before its too late.
People seem to miss the point that ICE fuels raise £0.85 per litre on tax. At average fuel consumption and average fuel economy, that is £737 per year that an EV will not have to pay.
Yes keep up the videos on Friday.its a good idea to drop informal chat in midweek also.they are informative and you are the reason I bought my first ev a corsa e.thanks.keep evolving the channel if time allows.
Happy with more videos like this for big news items :)
Everybody should of seen this coming. We all use the road so we should pay. It’s the luxury tax as you say there isn’t that many Ev’s under £40,000 so I think that’s a bit rich. It’s just now pick your power train petrol,diesel,Ev. Me I prefer the drive of an Ev so will be sticking with it.
Yeh I like this as an add on, as sorry to say you do the reading, chasing, foot slogging for us as it will save us doing it but it’s a starting place to find out background information 👍👍
I was saving for an all electric car (I have a hybrid with limited battery). With the price of fuel high but electricity going higher, I can see that the fuel cost per miles might be cheaper than the electric cost per mile. So, I will buy a top of the range gas guzzling SUV instead.
Don't forget that inflation is running at 10 to 11 percent, so in two years time the only EVs under £40k will be Chinese ones. I'm sure the Chinese manufacturers are watching and waiting to pounce.
I live far away from you but we have the same problem. Our roads need to be maintained. In our world, we have a petrol tax to do that. When cars starting using less petrol, we added a flat yearly tax to plug-in-hybrids and EV cars regardless how much you drive and includes the weight of the car. An alternative pilot program now being evaluated uses the odometer to calculate the tax so those that drive less pay less. So we have been paying $200 a year since 2013 for our plug-in hybrid and EV each. Since roads have to be maintained either way, pick a fair tax method and drive on!