Now that tax has gone paperless - well, discless anyway - why are we constrained by the old system of 6 months or 12 months? I've just taxed my motorbike (which I only use on fine days) and I should have liked to have taxed it for seven months, rather than six.

Come to think of it, I should like to tax my car until the end of its PCP (it was originally 36 months). Given that DVLA make it proportionately more to tax for six months, why not offer an incentive to tax for 36? HMG might say that DVLA would then be unable to claim the extra revenue foregone as a result of changes at Budget time. To which I would counter that HMG is getting the money up-front and should lump it.

What does anyone else think?

Dill

Might make sense to allow changeable direct debits to be set up, but as ever these things are based on the convenience of HM Treasury rather than Joe Taxpayer. They'll always want a consistent revenue stream where the only inconsistency is in whichever argument justifies an increase.

I really don't understand why we can't move towards a pay as you drive taxation system.

 

Take an average yearly mileage, and average mpg and add the resultant cost onto fuel.

 

If you've got an economic engine or only drive a few miles a year your quids in, big polluting engines and high mileages = pay more. 

 

No one ever doesn't tax a car again as it's in your fuel tank.

I really don't understand why we can't move towards a pay as you drive taxation system.

 

Take an average yearly mileage, and average mpg and add the resultant cost onto fuel.

 

If you've got an economic engine or only drive a few miles a year your quids in, big polluting engines and high mileages = pay more. 

 

No one ever doesn't tax a car again as it's in your fuel tank.

I think most folks would agree to this, the excuse in the past was they could keep and eye on MOT's, no longer an issue, and as you say no real escape.

Probably only be about 1 or 2p a mile.

I really don't understand why we can't move towards a pay as you drive taxation system.

 

Take an average yearly mileage, and average mpg and add the resultant cost onto fuel.

 

If you've got an economic engine or only drive a few miles a year your quids in, big polluting engines and high mileages = pay more. 

 

No one ever doesn't tax a car again as it's in your fuel tank.

 

I really don't understand why we can't move towards a pay as you drive taxation system.

 

Take an average yearly mileage, and average mpg and add the resultant cost onto fuel.

 

If you've got an economic engine or only drive a few miles a year your quids in, big polluting engines and high mileages = pay more. 

 

No one ever doesn't tax a car again as it's in your fuel tank.

 

What does anyone else think?

Dill

 

I can't see "what's in it for them" by offering an incentive (discount) to receive early payment of the tax. Money is so cheap at the moment (close to, or at negative interest rates).

Now that tax has gone paperless - well, discless anyway - why are we constrained by the old system of 6 months or 12 months? I've just taxed my motorbike (which I only use on fine days) and I should have liked to have taxed it for seven months, rather than six.

Come to think of it, I should like to tax my car until the end of its PCP (it was originally 36 months). Given that DVLA make it proportionately more to tax for six months, why not offer an incentive to tax for 36? HMG might say that DVLA would then be unable to claim the extra revenue foregone as a result of changes at Budget time. To which I would counter that HMG is getting the money up-front and should lump it.

What does anyone else think?

Dill

I renewed my road tax on the Octy and the bike recently and seeing as I don't plan to shift either, I now pay monthly by direct debit, seven or eight quid for the car a month and a touch less for the bike. I don't notice it go, all very smooth.

Sure it's no cheaper but it saves the possibility of overlooking it and the seemingly all too regular reminders from the DVLA.

Now that tax has gone paperless - well, discless anyway - why are we constrained by the old system of 6 months or 12 months? I've just taxed my motorbike (which I only use on fine days) and I should have liked to have taxed it for seven months, rather than six.

Just put it on monthly direct debit with a five percent surcharge and cancel when you want to garage the bike over winter. Job done.

Going on to the other point about adding road tax to fuel, yes it does make it harder to avoid and rewards occasional drivers, but it doesn't allow the big step change that we currently have for "green" cars that emit 119g or less. That's a surprisingly big motivator when it comes to buying new cars which helps the UK meet its emissions targets and raises a lot more money in VAT.

Dr Zoidberg - interesting idea. Do you mean that you set up a DD and stop/start it according to how often you need to tax the vehicle? For instance, if you wanted to use the bike in January (God forbid...) you'd re-start the DD on 1 January and stop it on 31 Jan? In other words, you pay as and when you need the vehicle?

Dill

Yep. Tax it at the start of April then when it gets colder at the end of October, SORN it and wait till next spring.

I believe you can also get insurance policies that drop down to Theft Only cover in the winter too.