Government seeking views on tax of ULEV

[anonymous-user]

Full document here

https://www.gov.uk/government/uploads/system/uploa...

Questions

1: Do you agree that company car tax bands should be refined from 2020-21 onwards in order to provide stronger incentives for ULEVs?

2: Should CO2 emissions only be used as the basis for new ULEV bands in the company car tax structure from 2020-21 onwards?

3: If the new ULEV bands should not be based solely on CO2 emissions what additional factor should new ULEV bands in company car tax be based on?

A3a zero emission miles
A3b other (specify).

4: If new ULEV bands were introduced, should these be charged on the basis of continuous narrower bands (e.g. X appropriate percentage per 5 grams of CO2 per km), or should there be fewer wider emission rate bands?

A4a continuous, narrower
A4b wider, banded
A4c comment, if you wish.
Question 5: If there should be fewer wider bands, how many should there be and where
should the breakpoints between the bands be?
A5a There should be …. bands
A5b The first breakpoint should be at…..grams of CO2 per km
A5c Second breakpoint (if any) should be at…..grams of CO2 per km
A5d Third breakpoint (if any) should be at…..grams of CO2 per km
A5e other breakpoint (if any) at…..grams of CO2 per km
A5f comment, if you wish

6: If zero emission miles should be used as well as CO2 emissions as the basis for new ULEV bands, how many zero emission miles bands should there be and where should the breakpoints between the bands be?

A6a There should be…..zero emission bands?
A6b The first breakpoint should be at…..zero emission miles and….. CO2/km
A6c Second breakpoint (if any) should be at…..zero emission miles and…..CO2/km
A6d Third breakpoint (if any) should be at…..zero emission miles and…..CO2/km
A6e other breakpoints (if any) at….. and…..and….CO2/km
A6f comment, if you wish

[modeller]

Seems sensible and hopefully we'll end up with a regime which encourages EVs with 50+mile range. With existing batteries and charging, I think a REX arrangement (like the i3) is a good compromise for vehicles which need ultra long range.

[jonah35]

Company car tax shouldnt be based on emissions. It should be on list price only.

[chandrew]

jonah35 said:

Company car tax shouldnt be based on emissions. It should be on list price only.

Totally agree. As we've seen from the ill-advised rush to diesel crude tax policy can easily create problems.

CO2 pricing is relatively easy: taxing consumption of fuel would be remarkably efficient as there is a strong relationship between fuel use and CO2 production. Possibly a better solution would be to ensure that the oil companies have to acquire carbon credits for the fuel they sell (and energy used in its production). Such a tax would fall most heavily on those who actually create the pollution.

The harder one is other pollutants because to a degree they depend on the design of the engine. A tax based on real-world performance of the engines would be the most effective & such a tax could easily cover the costs of doing the testing.

[talksthetorque]

jonah35 said:

Company car tax shouldnt be based on emissions. It should be on list price only.

Company car tax shouldn't exist.
I don't get taxed on other tools for the job, my screwdrivers or multimeter, in fact I get an annual flat rate allowance to replace them if necessary. And yes, I do use my screwdrivers and multimeter for private use. I just put about 40m2 of decking down with a cordless impact driver bought by my employers.

No option for no company car tax in the questionnaire though.
So I'll just stick to claiming the allowance, paying tax and NI on that and then claiming for the mileage


Stick the tax on fuel. Oh we can't because there's already a massive tax on fuel.

[98elise]

talksthetorque said:

jonah35 said:

Company car tax shouldnt be based on emissions. It should be on list price only.

Company car tax shouldn't exist.
I don't get taxed on other tools for the job, my screwdrivers or multimeter, in fact I get an annual flat rate allowance to replace them if necessary. And yes, I do use my screwdrivers and multimeter for private use. I just put about 40m2 of decking down with a cordless impact driver bought by my employers.

No option for no company car tax in the questionnaire though.
So I'll just stick to claiming the allowance, paying tax and NI on that and then claiming for the mileage


Stick the tax on fuel. Oh we can't because there's already a massive tax on fuel.

I'm pretty sure you don't pay the tax if you don't use it for private use. Its been a while since I've had a company car though.

[ZX10R NIN]

There shouldn't be incentives for any particular vehicle as said earlier it should be based on it's price, EV's are about to lose their zero emissions tag in the US because of where the energy to charge them comes from & the way the lithium is mined, so while there maybe no emissions there is still a significant environmental impact.

There's a company down the road from me that uses hybrid 4x4's & two electric delivery vans, the owner explained that although the 4x4's cost more to run than the diesel ones he had before the tax incentives means he's better off, it's the same with the vans he has two vans instead of one but again the tax breaks make it worthwhile.

His personal car is a Range Rover TDV8

As he happily admits if the government want to help him give them less money while using more of the earth's limited resources he'll take it, but if the playing field was level he wouldn't hesitate to go back to the diesel versions.

[talksthetorque]

98elise said:

talksthetorque said:

jonah35 said:

Company car tax shouldnt be based on emissions. It should be on list price only.

Company car tax shouldn't exist.
I don't get taxed on other tools for the job, my screwdrivers or multimeter, in fact I get an annual flat rate allowance to replace them if necessary. And yes, I do use my screwdrivers and multimeter for private use. I just put about 40m2 of decking down with a cordless impact driver bought by my employers.

No option for no company car tax in the questionnaire though.
So I'll just stick to claiming the allowance, paying tax and NI on that and then claiming for the mileage


Stick the tax on fuel. Oh we can't because there's already a massive tax on fuel.

I'm pretty sure you don't pay the tax if you don't use it for private use. Its been a while since I've had a company car though.

The Taxwoman said:

https://www.gov.uk/expenses-and-benefits-company-c...

Cars available for business journeys only
Business journeys are either:

journeys that are part of your employee’s duties, eg a service engineer travelling to an appointment
journeys an employee has to make to get to a temporary workplace
To be exempt, you must tell your employee not to use the vehicle for private journeys and check that they don’t.

This reads to me like employers might be on the hook if an employee gets caught.

Anyway, sorry for my slight derailment/mild rant.
List price has it's merits, but the companies would just adjsut their list prices to suit.
Loads of cars lilsting at 19999, 24999, 29999 or £1 below wherever the band change was. Then the companies make up the actual price with discounts, or start selling accessories, rather than options.


Maybe the square of .1% of list price.
£10k car = £100
£30k car = £900
£100k car = £10k

[JonV8V]

Before you determine tax you need to workout what outcome you want. Do you want less pollution? Do you want fewer cars? Do you want fewer miles driven? Do you want to tax those that earn most more? It's only when you know what you want to achieve can you set a tax policy. Basing it purely on how much money will It raise ignores the fact that everyone will game the system like getting hybrid cars that creep below 50co2 and are otherwise a bit of a joke. I think few would take a 330e over a 330i if the car tax and fuel cost was the same