uk Car tax disc to be axed after 93 years

[Crisp]

Car tax disc to be axed after 93 years

 

 

The tax disc to show motorists have paid vehicle excise duty is to be replaced with an electronic system, Chancellor George Osborne is to announce in his Autumn Statement.

 

The disc was introduced in 1921 but officials say it is no longer needed with the DVLA and police now relying on an electronic register.

The new system will allow people to pay the charge by monthly direct debit.

The Treasury said it showed government was moving "into the modern age".

 

It would also make "dealing with government more hassle free", a spokesman added.

At present, motorists are able to choose whether they pay VED in twelve or six month instalments.

The latter option costs 10% extra each year, but this is expected to be cut to 5%.

The new option of paying by monthly direct debit is also expected to cost 5% more than paying for a full year in one go.

The changes are expected to come into effect in October 2014.

 

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[Haggis Veteran]

Awesome decision :D

 

Cant wait for it to change

[neufuse Veteran]

why don't you guys just do what we do, charge a tax based on how much gas you use? why have an excise tax on the car itself? We pay a tax per gallon of gas sold, so if you aren't using you car, you aren't being taxed...

[Tomo]

why don't you guys just do what we do, charge a tax based on how much gas you use? why have an excise tax on the car itself? We pay a tax per gallon of gas sold, so if you aren't using you car, you aren't being taxed...

We already pay a tax on the fuel of around ?0.57 per litre plus this Vehicle excise duty which is based on engine size / fuel type and emissions. The higher the emissions the higher the cost.

[Skiver Veteran]

For the moment I have a company car, each time my car is up for a new tax disk it appears on my desk so this hasnt been a problem for a good few years!

 

They'll tax is for every breathe we take soon!

[LittleNeutrino Veteran]

i wish we could pay our vehicle tax monthly rather than paying all at once, we have two vehicles so it comes out to nearly $150 a year just to renew are tags each year :(

[Dick Montage]

Been a long time coming!

[Rippleman]

this is our version of registration? here we have vehicle registration that goes pays for the registration costs. Without it, the vehicle is not allowed to be on the road.

[Skiver Veteran]

i wish we could pay our vehicle tax monthly rather than paying all at once, we have two vehicles so it comes out to nearly $150 a year just to renew are tags each year :(

When I did own my own car, it cost $310 a year!

[Tomo]

It'll be nice to pay monthly but why do they need to charge 5% extra for this, seems to be another way to squeeze money out of lower earners!

[watkinsx2]

Finally! Monthly payments!

[neufuse Veteran]

We already pay a tax on the fuel of around ?0.57 per litre plus this Vehicle excise duty which is based on engine size / fuel type and emissions. The higher the emissions the higher the cost.

 

so...  how do they tax an electric or hydrogen vehicle? because it wouldn't fit that model (not that it fits the USA model either) but since its a per car tax it makes more sense to wonder what they do up there when it's a zero emissions non-combustion engine

[Tomo]

so...  how do they tax an electric or hydrogen vehicle? because it wouldn't fit that model (not that it fits the USA model either) but since its a per car tax it makes more sense to wonder what they do up there when it's a zero emissions non-combustion engine

I think they are exempt

[Lingwo]

so...  how do they tax an electric or hydrogen vehicle? because it wouldn't fit that model (not that it fits the USA model either) but since its a per car tax it makes more sense to wonder what they do up there when it's a zero emissions non-combustion engine

 

I think they are exempt

 

Yes, they are exempt as they produce zero emissions. Plus hydrogen isn't over here yet. I don't think they've even trialled it.

 

This is good news for drivers. Although i prefer to pay a year upfront. Gets it out the way.

[thealexweb]

i wish we could pay our vehicle tax monthly rather than paying all at once, we have two vehicles so it comes out to nearly $150 a year just to renew are tags each year :(

 

You can now (when implemented) pay monthly via direct debit.

[The Evil Overlord]

As if we weren't taxed enough..... 5% more??

[Soldiers33]

Luckily I dont have to pay tax, since I got a company car, but when I did I paid ?160 a year which is way too much. Tax this, tax that. All they do is spend the money on stupid pointless wars. Why cant we get someone good to run the country who doesnt just care about how much money goes into their pocket.

[Skiver Veteran]

As if we weren't taxed enough..... 5% more??

If I have read correctly, that is actually less.

You get charged 10% extra if you choose to pay every 6 months instead of paying for the full year in one hit.  Now it's been reduced to 5% for monthly or the the 6 month payment. Again If I understood things correctly, there will be no charge for paying in one lump sum.

[Tomo]

If I have read correctly, that is actually less.

You get charged 10% extra if you choose to pay every 6 months instead of paying for the full year in one hit.  Now it's been reduced to 5% for monthly or the the 6 month payment. Again If I understood things correctly, there will be no charge for paying in one lump sum.

Yes but that's not the point. If you can afford to pay in one sum you don't get charged extra however if your not fortunate enough to afford this then you are charged either 5% or 10% extra because you earn less!

[The Evil Overlord]

If I have read correctly, that is actually less.

You get charged 10% extra if you choose to pay every 6 months instead of paying for the full year in one hit.  Now it's been reduced to 5% for monthly or the the 6 month payment. Again If I understood things correctly, there will be no charge for paying in one lump sum.

You're probably right, and I could do with going back and re readin the article.

Just annoyed as my uk insurance group 15 car is now group 22, and insurance has gone up to an extortionate amount, this just felt like adding insult to injury..

[Skiver Veteran]

Yes but that's not the point. If you can afford to pay in one sum you don't get charged extra however if your not fortunate enough to afford this then you are charged either 5% or 10% extra because you earn less!

Don't get me wrong, I'm not saying I am in support of being charged more to make payments manageable but the Govt. dropping the cost of something is difficult to be too angry with.

[Tomo]

Don't get me wrong, I'm not saying I am in support of being charged more to make payments manageable but the Govt. dropping the cost of something is difficult to be too angry with.

They aren't dropping the cost, they are charging more for using monthly direct debits, basically they are taxing the poor. It doesn't cost them more to take monthly payments over yearly payments, it's just another stealth tax.

[The Evil Overlord]

Don't get me wrong, I'm not saying I am in support of being charged more to make payments manageable but the Govt. dropping the cost of something is difficult to be too angry with.

Yes, it is nice, but the 'oh hey, I'll add more charge to what you're paying, but don't worry, I might charge a little less more', is still more. :(

If they managed the revenue they're recieving better just like low income families have to, there'd be fewer people complaining.

They don't care about people complaining so long as we continue paying them like good little sheep.

[testman]

They aren't dropping the cost, they are charging more for using monthly direct debits, basically they are taxing the poor. It doesn't cost them more to take monthly payments over yearly payments, it's just another stealth tax.

The cost is dropping if you don't pay yearly.

In a period of one year, if you elect to pay for six months, then you pay twice, which at the price they set works out at 10% on top of the one 12-month lump sum.

With this new monthly direct debit way of paying coming out, if you elect to do that, you pay 12 times and the total amount is 5% on top of the one 12-month lump sum.

So, you pay less if you go for any option that isn't one lump sum.

If you pay yearly, the cost is the same as before.

So yes, quite why you have to pay more if you're paying in instalments baffles me, but fact is you're now not going to pay quite as much as you did before today.

You're probably right, and I could do with going back and re readin the article.

Just annoyed as my uk insurance group 15 car is now group 22, and insurance has gone up to an extortionate amount, this just felt like adding insult to injury..

They recategorised the insurance groups years ago.

[Skiver Veteran]

They aren't dropping the cost, they are charging more for using monthly direct debits, basically they are taxing the poor. It doesn't cost them more to take monthly payments over yearly payments, it's just another stealth tax.

I may be missunderstanding something here but I'm not sure how they are charging more. So before this you had the option to pay car tax based on emissions etc lets say that comes to ?100. If you pay that off in one lump it's done, but if you paid it off in 6 month chunks it would have come to ?55 each month being a total of ?110 (10% more).

Under the new scheme the options would be;

Pay off in lump sum = ?100

Pay off in 6 month chunk = ?105 (5% increase for the benefit)

pay off monthly = ?105 @ ?8.75 per month (5% increase / 12)

Unless my understand of the above is wrong, it's less than it was previously? My maths is bad but I think even these sums I can work out!?  :rofl: 

 

 

Yes, it is nice, but the 'oh hey, I'll add more charge to what you're paying, but don't worry, I might charge a little less more', is still more. :(

If they managed the revenue they're recieving better just like low income families have to, there'd be fewer people complaining.

They don't care about people complaining so long as we continue paying them like good little sheep.

The problem is, any why I am not really annoyed about this is imo its a form of credit that works this way across the world. If you owe something but spread the costs, it tends to come with an interest factor. Retailers, Banks do this all over, why can't the Govt?

 

EDIT: Glad Testman seems to agree with the same theory I came up with.