The Future Of UK Road Tax | GPS Telematics Based Car Tax??

The Future Of UK Road Tax | GPS Telematics Based Car Tax??

The UK Government rakes in £35bn (4% of their overall tax income) from UK motorists each year, £7bn in Vehicle Excise Duty (Road Tax) and £28bn in Fuel Tax. This hole has to be filled so a UK Transport Committee of MP's has suggested a replacement GPS/Telematics based "pay per mile" alternative. This is rapidly becoming an issue as with so many moving to electric cars the fuel duty is already dropping and with many EV users charging from home this only adds to the tax losses.

We go into the basic idea in this video and suggest a few who may potentially actually benefit from it. Let me know your thoughts in the comments.

It not known if or when these UK car tax changes may come into force but I will keep you updated in the weekly news videos as/when I get any more information.

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This channel tries to deliver honest advice for real people. Remember that I am not a financial advisor or car finance professional and am therefore not qualified to give any kind of financial advice, views shown here are purely my own but you must make your own financial decisions. Always seek professional advice before entering a finance arrangement of any kind and seriously consider your financial position and the long-term affordability of any deal that you may enter into.

All music used in this video is written, recorded, and produced by me.

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[chrishart]

I'm not happy I'm paying £101 now for a 600cc> motorbike

[Nedmyers]

Ditch the music - it just makes it harder to hear what you are saying.

[roystonjames]

When you look at the fuel duty we pay at the pumps and look at it a different way, we are already being charged per mile. My van does about 35 mpg at the rate im paying for fuel at the min it costs me about 18p a mile in fuel duty if fuel duty is 66%, you pay in advance and use up your per mile credit as you drive as I see it. they will never drop the fuel duty because crooks will find away round the milage tracking. I suppose they could check milage on your MOT and you get a bill after you MOT.

[johndoyle]

Thanks. Usually new excise duty/road tax rates are not enacted retrospectively, so if you bought a zero rated vehicle it usually stays that way, but new versions of the same car may get a new rate.
Maybe wishful thinking, but no doubt we will all get shafted one way or another.

[Karl_Burton]

"I'm sure this will take the shine of EV ownership, for some". Serves 'em fucking right. They are to blame. I can't believe there's anyone who didn't see this coming.

[Hell-Hound]

I don't really have any problems with a "pay per mile" style tax system tbh. The Mrs. and I each have a car and in total we'll only do 5k miles per year. I have a 19 yo diesel focus, and she has a panda twin-air 4x4 soon to be replaced with an ev company car. Why should we have to pay the same as someone who drives 20-30k+ a year?

[h.bsfaithfulservant]

Words fail me Jim 😧🙀…. This is going to be a roaring success, just like the poll tax 🙄🤬!

[PBUK]

We'll not be able to afford to run a vechicle at this rate ..

[mikecoward]

It's highly likely that any such device will be able to do so much more. IE the government will know where our cars are all the time, they will also know everything about how we drive etc.

[robinoconnor]

Starting July 06, 2022, all new vehicles sold in Europe will be required to incorporate a speed-limiting feature called intelligent speed assist. The Uk has yet to agree to this but almost certainly will adopt it. I understand Mileage trackers/road toll fee recorders can be built into the device, its probably there already. It can and will be added to current vehicles in the future. The big question will we still have to pay fuel duty on top of the mileage charge?

[MrG.]

At the moment due to fuel prices I am doing about 2, 500 miles per year. So this would be good for me hopefully. I would like a newer heavier car to tow a caravan but the present luxury car tax puts me off. Why should I pay more VED when I am travelling so few miles?

[ahmedtanvirchowdhury]

Dose anyone really believe that you will be able to pay less tax for driving less? Now we pay fix rate road tax per year, whether it is £0 or £300 per year. I drive about 7k miles pa which includes 1 or 2 holiday drivein. But once we go to pay per mile, I am confident the bill can go as high as few thousand £. Also they will probably introduce something like pay in advance and no refund if you do not drive. Like London congestion charge.

[darrenquarterman]

As we do minimum mileage possibly in my benefit as I run 4 van do sub 10k per van

[adrianward]

Only because an EV doesn’t cough-out Co2 / Nox it’s doesn’t mean they are green. Buying gas overseas also doesn’t mean its green. A new hybrid vehicle pays more Road duty than a old polluting vehicle, just create a fair system. Use the Road you pay. If the combustion engine new car sales are banned 2030/35 you have not options, so not sure how you can discourage EVs purchasing. IMO.

[darren]

Keep the ICE car tax the same (why change it?) allow the NEW ev cars a 3 years grace period so there is still an incentive to buy one then charge a fixed amount based on size/weight after 3 years

[slbe]

Yes, it's likely such devises are capable of doing so much more than keeping track of you anywhere you go and charge you for it, can you imagine what would happen if your journey patterns could be analysed and that data ould be exploited commercially?

[andrewhubbard]

The music is annoying when your trying to listen to what he's saying

[jonessenoj]

Can you look into why the truckers haven't blockaded the roads ??? now fuel is 170p+ per litre, yet on 27th May 2008 when it was 126p per litre...they did! I have my suspitions and it evolves Air compressors and massive Turbo's that only use Diesel as a lubricants 😉...just subbed btw 👍

[gavjlewis]

I honestly don't see it working. Putting the technology on the cars is just asking for abuse.

A far better way is road tax as we have it today (a set fee). This covers all local journeys. Then place ANPR cameras on motorways and major A roads. This would then be charged per mile.
Yes you will get a few people wanting to miss the charge. But would you want to spend 6 hours driving from Nottingham to London avoiding the M1 or spend 2 hours on the M1 and it cost you £12.50 in tolls.

[HeavyDragoon]

Soo how are businesses going to be affected? For instance...(get that weekly) shop on a bicycle.for a family of 4!!!!.