UK vehicle excise duty ( annual road tax )

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#1
2017 road tax in the UK

I have just picked up some interesting information on the UK Tesla 3 owners club Facebook site about 2017 vehicle tax rates. In a nutshell zero emissions vehicles will not pay any road tax each year, as they do at present, however new cars registered in 2017 costing over £40000 will pay £310 additional cost above the yearly rate for the first five years. So we have a choice, suck it up for five years then pay nothing and plan on keeping the vehicle for a long period, as I want to do, or spec the car below 40K and hope you can add some specs through software after purchase, i.e supercharging. This move by our wonderful carbon saving government may mean a lot of people in the UK nor taking up their option on the Model 3. This could well have an impact on Model S and X sales in this country.
 

Englander

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#2
2017 road tax in the UK

I have just picked up some interesting information on the UK Tesla 3 owners club Facebook site about 2017 vehicle tax rates. In a nutshell zero emissions vehicles will not pay any road tax each year, as they do at present, however new cars registered in 2017 costing over £40000 will pay £310 additional cost above the yearly rate for the first five years. So we have a choice, suck it up for five years then pay nothing and plan on keeping the vehicle for a long period, as I want to do, or spec the car below 40K and hope you can add some specs through software after purchase, i.e supercharging. This move by our wonderful carbon saving government may mean a lot of people in the UK nor taking up their option on the Model 3. This could well have an impact on Model S and X sales in this country.
I can see the logic here - that if you can afford a £40k+ car, you can also afford to pay the extra road tax, but I too think it will dent EV sales in the UK.

My Model ☰ budget has always been less than £40k, so I hope to keep it below that by omitting anything I can pay for later, like Supercharging and Autopilot.
 

TrevP

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#3
I'm surprised you have to pay road tax in the uk given the higher fuel costs there. In Canada transportation infrastructure costs are maintained from added taxes on our fuel prices. In Ontario our new climate change action plan is going to raise fuel prices by $. 04 a litre soon to help pay for other things they're introducing. We're making a hard push for EVs on our roads over the next 4 years with tremendous incentives.
 
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#4
Our government screws the motorist this change in the tax laws is because cars are getting lower on emissions resulting in lower road tax and therefore the government getting less revenue. Our current price of petrol is £1.12 on average per litre, just over £6 per gallon, most of this is paid in tax about 80 pence per litre or more.

I had a read of the paper on the new tax rates from 1st April 2017 In the first paragraph it says cars over £40000 will only pay the extra £310 if the pay the standard rate i.e £140, therefore as zero emissions cars pay £0 they will not have to pay the extra. I have tried to copy and paste the paragraph but the forum will not a low it
 
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#5
The current UK subsidy for EV's is £4500, this Ibwas told at Tesla Birmingham that is deducted before the price of the car is posted, so if Elon said the cost of the Model 3 in the UK would be £30000 then that would include the government subsidy.
 
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#7
I e mailed the DVLA for an explanation of the statement regarding zero tax cars over 40K as it can be read either way, surprisingly they have not replied! A poster on the Tesla model three Facebook page pointed me at a magazine article which clearly states we will be hit with the extra £350 tax over 5 years if our car is over 40K. As a lot of options on Tesla cars are able to be paid for after you have got the car, then I think there maybe a good chance we can spec the car under the dreaded figure then pay for upgrades later. I am sure the legal eagles of Elon's will be onto this and hopefully supply the car with add on options fitted.
 

BigBri

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#8
I've really come to appreciate Ontario lately the more into EVs as our incentives should be around 14k, no tax on the purchase price and free overnight charging at home for the first few years.
 
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#9
Our government have slipped this new road tax system in fromma budget two years ago, strangely as no one I mention itbto seems to have heard about it. Another one of our governments greatvstealth taxes
 

BigBri

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Our government have slipped this new road tax system in fromma budget two years ago, strangely as no one I mention itbto seems to have heard about it. Another one of our governments greatvstealth taxes
I'm nervous we'll see similar things down the road. Ours is pushing hard for EVs which is great but when there isn't a ton of fuel tax being paid chances are they'll come after EVs.
 
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#11
We had the same when diesel powered vehicles were being pushed as the new fuel saving idea, they then started to put extra fuel duty on as we changed from petrol to diesel filled vehicles. They are now thinking of putting a higher tax on us as they now decide that diesels are dirty polluters, roll on my Tesla 3
 

Jayc

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#12
I think where the UK government went wrong is that they put this blanket 40k threshold for all cars irrespective of whether or not EV. And we all know that EVs cost more than the equivalent normal ICE. Then the government argues okay that is why we have the EV grant i.e. to make it a level playing field - but that has been going down since it was introduced and by 2018, I don't expect it to be there so it is no longer a level playing field. I think some of us have to get together and lobby the new government.
 

Scuffers

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#14
I would hope Tesla apply some thought to this and offer the M3 at a sub-£40K delivered price with 'options' available as upgrades after registration - much like the SW locked batteries on the MS 60Kw that could be unlocked to 75 at any time.

if they did this with autopilot, battery, etc. then they should be able to keep to the £40K limit without much effort.
 

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#15
I agree, if they do not keep it sub £40K then it’s going to be a white elephant over here and fail spectacularly!

Who in their right mind will pay an extra £1,550 in TAX alone just because it has crept above £40K? On a £62+K Model S people will not be too bothered about the extra TAX, but with the Model 3 upgrading to the 19” wheels could push the price over £40K meaning the wheels actually cost you £3K rather than the listed £1,500!

Even at £40K it is not going to make the masses switch to EV’s as you can buy an ICE car over here with as much spec (ignoring the self driving capability... whenever that becomes available) for a thousands less, leaving you a shed load of cash for fuel.

IMO for EV’s to work they need to be cost efficient as well as practical (enough chargers / incentives to install your own charger)
 

Gizmo

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#17
I agree, there was already talk last week that EV’s will have to start paying VED once new petrol and diesel cars are banned (2040) personally I think once the masses start to adopt EV’s give it 5 years and the VED will be introduced.

The current UK subsidy for EV's is £4500, this Ibwas told at Tesla Birmingham that is deducted before the price of the car is posted, so if Elon said the cost of the Model 3 in the UK would be £30000 then that would include the government subsidy.
I hadn’t seen any mention of that before, but that would certainly help and might mean that a half decent* Model 3 would come in under £40K, that all relies on the Long Range battery being able to be unlocked by software after purchase, which I doubt will be the case?

* Standard battery
Premium upgrade
Enhanced Autopilot
 

Scuffers

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#18
currently, from what Tesla have put out, the long range has a different battery as opposed to the smaller being a SW lock, I hope Tesla realise this and make the change...