Author Topic: Changes in the budget  (Read 1846 times)

Bob Purton

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Changes in the budget
« on: April 05, 2014, 08:54:15 AM »
I see these are the changes in the budget that may have an impact on microcar drivers. In summery the way I understand it is anything before 1974 will be tax exempt with a roll on  40 year cut off. No more tax discs and more ethanol to damage our engines and fuel systems. Have I understood this correctly?

 2.151 Fuel duty incentives for methanol—
From April 2015, the government will apply a reduced rate of fuel duty to methanol.  The rate will be set at 9.32 pence per litre.  The size of the duty differential between the main rate and methanol will be maintained until March 2024.  The government will review the impact of this incentive alongside the duty incentives for road fuel gases at Budget 2018.  (Finance Bill 2015)

2.152 Vehicle Excise Duty (VED) rates and bands—
VED rates for cars, motorcycles and the main rates for vans will increase by RPI from 1 April 2014.  (Finance Bill 2014)

2.153 VED: classic vehicle exemption –
The government will introduce a rolling 40 year VED exemption for classic vehicles from 1 April 2014.  (Finance Bill 2014 and future Finance Bills) (39)

2.154 VED administrative simplification—
As announced at Autumn Statement 2013, the government will introduce legislation to reduce tax administration costs and burdens by making the following changes with effect from 1 October 2014:
— motorists will be able to pay their VED by direct debit annually, biannually or monthly, should they wish to do so. A 5% surcharge will apply to biannual and monthly payments (Finance Bill 2014) (c)
— a paper tax disc will no longer be issued and required to be displayed on a vehicle windscreen (Finance Bill 2014)

richard

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Re: Changes in the budget
« Reply #1 on: April 05, 2014, 09:11:04 AM »
Well done Bob ! A nice tidy summary thanks . As a small aside those with replica vintage tax discs will presumably be able to display them on the highway -  a nice bit of news for those making them ! I like them as it's of interest to the public as to the vehicles date and type
outside of a dog a book is mans best friend. Inside of a dog it's too dark to read .Groucho Marx 1895-1977

Big Al

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Re: Changes in the budget
« Reply #2 on: April 05, 2014, 11:58:49 AM »
The last point reducing tax administration costs. Yet the tax still goes up so in fact that will be a tax rise then.

Oh more Methonal reduces the amount of oil you buy a gallon. Te tax for fuel is therefore increased as less oil is part of the gallon but the excessive taxation and duty rates remain in full. So a few pence of is a bit like giving a child the sweetie paper. 

Classic on the road, well possibly but with fuel that dissolves bits you cannot get and the rubbers leading to potential fire risks - oh do not bother with an MOT to spot those by the way, are you going to risk your beloved car to the 4X4 school runner on the mobile? Not really giving us much of anything really.

Unless you take old well built pre '60 car. Replace old engine with pre sniffer diesel, so it can run veggie. 5 speed gearbox and uprated suspension and brakes if well chosen. Suddenly you have only to fund a suitable insurance deal and Bob is your Aunt Lucy. Bit tricky with Microcars but I already own a converted Borgward and I think a Wolseley might follow.
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DaveMiller

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Re: Changes in the budget
« Reply #3 on: April 05, 2014, 03:05:03 PM »
... those with replica vintage tax discs will presumably be able to display them on the highway ...

I'm amazed at how often someone notices the (expires) "Jan 66" disc on my Bond Mk G (I have the original of this, the car's very first tax disc, but for preservation I display a good coloured scan of it).  It does add a dash of contemporary character.  Luckily, no over-efficient jobsworth has noticed it, as I also display the current disc, and I understand it's illegal to display more than one!

AndrewG

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Re: Changes in the budget
« Reply #4 on: April 05, 2014, 03:37:02 PM »
I used to run a tax-exempt car and get the tax disc at a wonderful sub post office (remember them?) on the industrial estate where I worked.  It looked like a nuclear bunker with a door (it was an epically rough area) and was run by a pair of old ladies straight out an Ealing comedy - cardigans, fur-lined bootees and too much of that special old lady perfume (Soir de Paris?).

They so loved issuing free tax discs that each year I had to say which one of them had served me the previous year, as they took it in turn to give out the free ones......

richard

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Re: Changes in the budget
« Reply #5 on: April 05, 2014, 03:50:20 PM »
 :D :D
outside of a dog a book is mans best friend. Inside of a dog it's too dark to read .Groucho Marx 1895-1977