Road Fund Licence increases by up to 950%! Only zero emission cars avoid it…

It had to happen sooner or later. Stupidly low road tax fees, or indeed total exemption from paying any road tax at all on many new models meant the government had to do something to stem the tide of receding revenue from the beleaguered motorist.

You know what that means. Big changes in the cost of road fund licence (road tax) will see some models in bestselling ranges like the Ford Fiesta, Vauxhall Astra and Nissan Qashqai lose their current exemption from road tax.

From April 1st all new cars will be subject to the new rates. And no, this is not an April Road Fund Licence increasesFools. Many models that are currently exempt will start to attract a larger initial ‘new car’ fee and a minimum £140 a year in road fund license charges, equating to some £400 or so over three years, when a new Treasury scheme comes into place on April 1, affecting any new car registered after that date.

But in the most extreme cases some buyers who choose a car which is currently tax exempt will be charged almost £1,000 over three years.

Buyers of Britain’s cheapest cars will also be targeted by the new system, which will increase tax bills by more than 900% in some cases, compared to the current regime.
Currently, Britain’s cheapest car, a Dacia Sandero, costing £5,995, a buyer will pay nothing in tax for the first year, and £30 every subsequent year.

But the new car tax system will charge owners £160 for the first year and £140 every year after that – a 633% increase.

Some Volkswagen Up owners currently pay just £40 in tax over the first three years. Owners who buy one of those cars after April 1 will pay £420 over the same period – a £950% increase.

The motor trade is already reporting that buyers are changing their cars early to ensure that they are delivered and on the road before April 1st. This will ensure that they are taxed under the current regime until they are scrapped.

Tax Changes
tax changesThe current tax scheme is based on carbon dioxide (CO2) emissions. Any car emitting an average of less than 99g of CO2 for every kilometre that it drives is currently exempt from car tax.

The new rules slash that exemption which, after April 1st, will only apply to vehicles with no CO2 emissions at all – which will be the fully electric only, or hydrogen powered cars.

Drivers of petrol, diesel, or hybrid cars will pay a minimum of £140 in tax each year, apart from the first year that it’s on the road, when tax will still be calculated on CO2 emissions.

It gets worse for anyone buying a car with an official price of more than £40,000.
They will face an annual ‘wealth tax’ for cars between the ages of one and six years. As an example, plucked randomly, a current buyer of a new Land Rover Discovery Sport HSE Black, delivered before April, will pay £390 in tax over three years.
But after April, their bill will rise to £1,100 because the car’s official price is more than £40,000.

The Porsche Panamera 4 E-Hybrid is currently exempt from tax, but from April the bill over three years will climb to £925. Although in all honesty I doubt if a £300 a year price rise will affect many people who can afford a £40,000 plus car, so it is the smaller car buyers that will feel the impact more.

Troman FinanceThe changes are expected to earn the Treasury more than a billion pounds a year more from 2020. Car tax revenues had been decreasing, as more fuel efficient cars came onto the market.

The Treasury finally stepped in when one in five new cars sold in 2015 was efficient enough to be tax exempt, according to the Society of Motor Manufacturers and Traders.
So, now is the time to start looking new car if you want to save money!
Paul Rainbow is Director of vehicle contract hire specialists Troman Finance.

Can you afford not to have private medical insurance?

The NHS is at breaking point – with limited resources, underfunded and under staffed along with extended waiting times for consultations, diagnostic tests and surgical procedures. Yes the NHS is good in an emergency situation but fails with the after care and the ongoing treatment. Coupled with the denial of life saving cancer drugs on the NHS due to cost, more people are now looking at private medical insurance as an alternative option for peace of mind – and premiums are more affordable than people imagine. Continue reading Can you afford not to have private medical insurance?

‘Why Not Fix’? It’s certainly a lot cheaper than buying new…

In our fast moving technology driven world we often don’t have time to ponder what to do with our collection of ‘broken things’ before they get superseded with the latest must have gadget upgrade!

Continue reading ‘Why Not Fix’? It’s certainly a lot cheaper than buying new…

Menopause – The final frontier for discriminating lawyers…

No area of law has developed quite so quickly or quite so comprehensively as the law of Discrimination. Since the Race Relations Act in 1965 and the Equal Pay Act in 1970, we have protected society from discrimination by race, gender, age, disability, religious belief, sexual orientation and gender reassignment and have demanded that employers make reasonable adjustments to prevent discrimination in the work place.

Continue reading Menopause – The final frontier for discriminating lawyers…

Vehicle leasing for cars and vans, is it for you?

Vehicle leasing for cars and vans, is it for you?

Deals like the Citroen’s new C3 from under £120 plus VAT on a lease, or a VW Up! For £99 a month and with small initial payments, are making new car ownership much easier for thousands of people.

Continue reading Vehicle leasing for cars and vans, is it for you?

Microsoft OS Telephone Call Scam – Keep Yourselves Protected!

If you get a call from a scammer pretending to be an engineer offering to fix your computer it is a scam! In this BLOG we’ll go through steps on how to stop you falling victim to this scam…

Continue reading Microsoft OS Telephone Call Scam – Keep Yourselves Protected!

Is it worth my time entering for business awards?

Entering business awards is a time consuming process. In many ways it’s a bit like writing your business plan all over again, with many similar questions needing careful thought. If that sounds like a headache you don’t need then why bother at all…

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Is your business up to speed with the 2015 Insurance Act?

On August 12th (this year!) the 2015 Insurance Act came into force, affecting the rules and regulations for how businesses buy insurance and their contract with their broker and insurer.

Continue reading Is your business up to speed with the 2015 Insurance Act?

What makes a good exhibition stand?

Our Chief Executive, Graham Marley, knows a bit about exhibitions, having been involved with the highly successful Let’s Do Business brand since it started in 2002. The Hastings Expo in September will be the 30th under the brand – and unless you can prove it otherwise he is the only person to have attended them all.
So we asked Graham what makes a good exhibition stand?

Continue reading What makes a good exhibition stand?