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Just been watching The Chase and a question on Road Tax came up. Looks like I have to pay an extra £335 per year for the next 4 years for road tax because the Takumi basic price is above £40,00. Who else did not know this?

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26 minutes ago, Richard1200 said:

Just been watching The Chase and a question on Road Tax came up. Looks like I have to pay an extra £335 per year for the next 4 years for road tax because the Takumi basic price is above £40,00. Who else did not know this?

I will probably never be able to afford a new car - But I have seen the above mentioned a few times on the forum i.e keeping the cost price under 40k

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34 minutes ago, Richard1200 said:

Who else did not know this?

I think the more relevant question is - how did you not know this? It's been common knowledge for a long time now (maybe not the exact figure but certainly that a surcharge exists).

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An extra £1 a day...

Is it really a significant extra on the cost of buying a new car? Well, clearly to some it is. Is it just the principle? Principles tend to be some of the most costly things to hold. Here preventing one's ownership of something one clearly coverts

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26 minutes ago, Charli Alder said:

Same hear. I knew about the tax threshold and was the reason I didn't go for the Takumi. UX300E even more money!

I thought the 40k threshold didn't apply to electric?

yup...."Any vehicle (excluding BEVs) with a list price of £40,000 or above will incur an additional premium rate for 5 years (starting from the second time the vehicle is taxed)."

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12 hours ago, cruisermark said:

I will probably never be able to afford a new car - But I have seen the above mentioned a few times on the forum i.e keeping the cost price under 40k

The thing is, even if you buy seconhand car with an original list price of £40K plus and assuming it is under 5 years old, you will pay the additional tax. The "good news" is after this is paid 5 times in total, the tax reverts (if I remember correctly) to £155.

This I am afraid is yet another ploy to increase the overall tax burden, and before you know it everyone that buys new will be paying this additional levy as car prices naturally increase in cost. Exactly the same is happening with many tax points being frozen for 5 years with a net consequence you end up paying more personal tax, something an awful lot of people fail to see.

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1 hour ago, Brian R said:

The thing is, even if you buy seconhand car with an original list price of £40K plus and assuming it is under 5 years old, you will pay the additional tax. The "good news" is after this is paid 5 times in total, the tax reverts (if I remember correctly) to £155.

This I am afraid is yet another ploy to increase the overall tax burden, and before you know it everyone that buys new will be paying this additional levy as car prices naturally increase in cost. Exactly the same is happening with many tax points being frozen for 5 years with a net consequence you end up paying more personal tax, something an awful lot of people fail to see.

That is very true, before long an average car will be hitting 40K & the threshold doesn't seem to be going up.

As for salary, you can in a lot of cases increase you pension contributions to help offload some of this tax burden & also help your retirement be a little more comfortable in the future.

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can't understand why one can be so meany - minded when paying out £40k plus for a car and worry so significantly about an extra £335 a year / less than a £1 a day to run the thing

Just wait until the Govt starts to impose a rational annual Road Tax on EVs to wot ! they say ....  keeping the roads good and well ...  after all a EV does actually cause as much road damage, wear and tear as an " ordinary " other fuel driven beast ........  or maybe EV drivers weren't really aware of that and again, whinge and whine about paying that too ......  a relatively miserly sum in the great scheme of things ...................

and then ........ When the benefit of getting into CO2 savings for the planet will fall onto Hydrogen Power cars and zero annual Road Tax there at that time to encourage sales .......  just like the EV of today

I don't mind keeping on paying my 80% fuel duty with every drop I put into my not-so-eco-friendly ( so they tell me ) 4ltr V8 ........  vroom vroom :wink3:

oh, and is it only 80% ?? . to my simple mind it's probably 400% .....  being of the  £ per litre cost 20% incl all costs and profits, production costs, delivery costs etc .  and then ........  4 X that added on as Tax at the pump, at delivery :unsure:

Malc

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51 minutes ago, Bounce75 said:

That is very true, before long an average car will be hitting 40K & the threshold doesn't seem to be going up.

As for salary, you can in a lot of cases increase you pension contributions to help offload some of this tax burden & also help your retirement be a little more comfortable in the future.

Good advice Steve, it's your duty and not Customs and Excise duty to minimise any tax taken from you especially if PAYE. The new rates of N.I.  are particularly iniquitous for younger people as it becomes more likely a State pension in say 20 years from now will be hard to afford unless means tested,relying more and more on private schemes. For those people who, today, are luxuriating on a final salary scheme AND state pension its quite easy to be magnanimous where additional tax is concerned since you don't have to spend every week earning it. 

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I don't think it being meany minded at all. The government created a vehicular tax regime that makes no sense whatsoever and they now realise they have shot themselves in the foot and need to bring some semblance of order to the whole system. Barring the additional tax which all new car buyers will eventually pay, they are effectively reverting to the original system where everyone pays an identical annual tax burden.

1 hour ago, Bounce75 said:

That is very true, before long an average car will be hitting 40K & the threshold doesn't seem to be going up.

As for salary, you can in a lot of cases increase you pension contributions to help offload some of this tax burden & also help your retirement be a little more comfortable in the future.

You can indeed pay additional pension contributions, but your 20% and 40% relief is being devalued each year for the next five, and you are also compounding the loss you originally suffered because allowances didn't increase. So you stash a little extra into your pension only to find they get you at the other end because the Life Time Allowance is fixed till 2026! Again, more people will get hit by a 55% tax once they exceed that maximum. Might seem like a dim and distant dream to some to have a tax burden at £1.073 million fund(s) but the tax take does seem to be increasing at an alarming rate. BTW, don't get me wrong on pension contributions, which are (for the moment) one of the best ways of playing the system up and until (as they surely will) start to reduce the relief.

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21 minutes ago, Brian R said:

The government created a vehicular tax regime that makes no sense whatsoever

hahahahahahaha ...  but that's the way it's been forever with Govt taxation whatever the style the " take " is done ....  it just so happens that whatever they do to get at us motorists it's never going to be enough for them and I'm quite awaiting the day when they cancel the free Road Tax for ancient vehicles too ...  now, that really doesn't make any sense at all and never has !

Why should I get free Road Tax for my 1932 beast ?

Malc

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26 minutes ago, Malc said:

hahahahahahaha ...  but that's the way it's been forever with Govt taxation whatever the style the " take " is done ....  it just so happens that whatever they do to get at us motorists it's never going to be enough for them and I'm quite awaiting the day when they cancel the free Road Tax for ancient vehicles too ...  now, that really doesn't make any sense at all and never has !

Why should I get free Road Tax for my 1932 beast ?

Malc

It's not been that way "forever" at one time there was no tax and now the Hmrc tax code is the largest in the world no wonder tax is now at the highest level on ordinary people since the 1950's. When government introduce a digital currency, as inevitable as day follows night imagine the implications of that 😱

As to VED free concessions for historic vehicles primarily exists to help people keep and maintain them, not all are series one jaguar e types. Bit like your free bus pass Malc. 

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1 hour ago, Brian R said:

I don't think it being meany minded at all. The government created a vehicular tax regime that makes no sense whatsoever and they now realise they have shot themselves in the foot and need to bring some semblance of order to the whole system. Barring the additional tax which all new car buyers will eventually pay, they are effectively reverting to the original system where everyone pays an identical annual tax burden.

You can indeed pay additional pension contributions, but your 20% and 40% relief is being devalued each year for the next five, and you are also compounding the loss you originally suffered because allowances didn't increase. So you stash a little extra into your pension only to find they get you at the other end because the Life Time Allowance is fixed till 2026! Again, more people will get hit by a 55% tax once they exceed that maximum. Might seem like a dim and distant dream to some to have a tax burden at £1.073 million fund(s) but the tax take does seem to be increasing at an alarming rate. BTW, don't get me wrong on pension contributions, which are (for the moment) one of the best ways of playing the system up and until (as they surely will) start to reduce the relief.

Whosoever trust the government has a short memory.

Governments (politicians' lye and cheat - that is why they are politicians) and need to get money so the government can give long holydays and pay their employed well for doing nothing or very little. No matter what they promise, you cannot hold it against them. Why? You did elect them.

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5 minutes ago, Phil xxkr said:

free bus pass Malc. 

jeez, not used that for years ....  where I used to live times past there were real buses and bus stops and useful places to visit on those buses ..........  might investigate again ............  thanks for reminding me ....... somewhere in those old bank cards with accounts I never use ............  forgotten now with interest rates so wonderfully low at methinks 0.01%  but hey, that's ok, it's Tax Free ............ unless you've got £1mn + to earn bugger all interest on ...  and these pension pots, well, not much use to you when you're pushing up daisies ........  and incredibly valuable houses the same ..........  LIVE FOR THE DAY I say

But then i would wouldn't I, having made all the ££££ I can and will ever need, my inheritors too :whistling:

If I remember reading about when my 1932 Triumph was new there was Road Tax then .....  but not quite sure about that tbh:unsure:

EV Road Tax and super electric charge Tax too I say ......  somehow ..  why should EV users get away scot-free ( pardon the expression  Scotland )

Malc

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19 minutes ago, Phil xxkr said:

It's not been that way "forever" at one time there was no tax and now the Hmrc tax code is the largest in the world no wonder tax is now at the highest level on ordinary people since the 1950's. When government introduce a digital currency, as inevitable as day follows night imagine the implications of that 😱

As to VED free concessions for historic vehicles primarily exists to help people keep and maintain them, not all are series one jaguar e types. Bit like your free bus pass Malc. 

Do not think UK has highest tax burden.

In Denmark you pay the car and then the government add to the price 180%. EV were tax free a short while, but believe that is not going to continue.

That is the reason why you in Denmark can buy cars with less equipment than in many other countries (and why many cars are being exported from Denmark).

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I think Singapore also has an amazingly HUGE car tax burden too ..  can't remember the figures but they are eye-wateringly HUGE and effectively push OLD bangers off the roads.........  maybe cars over 3 years old that is 

someone here might check this out in case I'm hopelessly out of touch now :unsure:

Malc

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38 minutes ago, Las Palmas said:

Do not think UK has highest tax burden.

In Denmark you pay the car and then the government add to the price 180%. EV were tax free a short while, but believe that is not going to continue.

That is the reason why you in Denmark can buy cars with less equipment than in many other countries (and why many cars are being exported from Denmark).

Highest tax burden since the 50's in UK 

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4 minutes ago, wharfhouse said:

I've just renewed the tax on my IS 300h - £10 for the year - I am lucky to be in that window when hybrids had virtually no road tax (2014 reg car) 😊

Fantastic 

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1 hour ago, wharfhouse said:

I've just renewed the tax on my IS 300h - £10 for the year - I am lucky to be in that window when hybrids had virtually no road tax (2014 reg car) 😊

That is great news.😀 I miss that now.

My previous Volvo V40 D4 was £0 road tax, not bad for a 190bhp car with a 0-60 of just over 7 sec's. It was only 99g/km CO2.

Somehow my IS300h is 144g/km CO2 for a Hybrid? £150 or so a year.😒

Typical Govt meddling with things that were working fine.😁

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