Latest news with #UKtax
Daily Mail
4 days ago
- Business
- Daily Mail
How far would you go to avoid your personal tax raid? This is Money Podcast
Tax is an increasingly taxing subject for many people who feel hard done by as Britain's complicated system catches them out. From quirks of the system, such as the 60 per cent tax trap and child benefit removal, to the childcare cliff edge, frozen thresholds, and pensions soon to be dragged into inheritance tax, there's a whole host of things to drive us mad. And, it's getting worse. The Tories and now Labour have both chosen to ratchet up the things that trip people up to raise money, rather than sort out a tax system that most economists say is a total mess. So how far would you go to avoid your personal tax raid? And is tax changing people's behaviour? Lee highlights how. On this podcast, Georgie Frost, Lee Boyce and Simon Lambert dive into how the British tax tail is wagging the dog. Plus, as the Switch 2 arrives and the video game industry goes from strength to strength, should you invest in video game firms? How much do you need for a comfortable retirement – and what does that get you? And finally, you put up an 8 foot fence for privacy, your neighbour has gone from non-plussed to threatening to call the council over a planning breach, what do you do? The team have some answers. And for all the listeners that Simon directed to the gem that is the comments section of the story, here's the link. Listen to the This is Money podcast We publish the podcast every Friday on This is Money and at Apple Podcasts, Spotify, Amazon Music and more. Search for it at your favourite podcast platform. To download Apple Podcasts go to the App store. On Android devices, go to the Google Play store to download the podcast app of your choice. You can press play to listen to this week's full episode on the player above, and wherever you get your podcasts please subscribe and review us if you like the podcast. You can also listen to the latest episode, find the archive and join in the debate in reader comments on the This is Money podcast page.
Telegraph
01-06-2025
- Automotive
- Telegraph
Electric car tax trick costs Treasury £48m
Savvy electric car owners cost the Treasury £48m by exploiting a tax renewal quirk in the lead-up to significant rule changes. Electric vehicles (EVs) lost their tax-free status on April 1 2025 as the Government looked to boost dwindling car tax receipts. The changes mean EVs now attract a £195-per-year bill, bringing them in line with most petrol and diesels. But owners who renewed before April were able to swerve the vehicle excise duty (VED) charge – taxing their car for free for another 12 months. Figures from the Driver and Vehicle Licensing Agency found that renewals for electric cars surged by 1,467pc in March. The data, obtained via a Freedom of Information request by used car retailer Cinch, shows that 245,000 tax renewals were completed for EVs. With around 1.3m electric cars on UK roads, the figures suggest around one in five EV owners re-taxed free of charge in March. The mass number of renewals meant drivers saved £48m in tax. Sam Sheehan, motoring editor at Cinch, said: 'Such a big increase in renewals shows just how many EV drivers might have got themselves another year of road tax-free motoring.' Those who sidestepped the bill were able to renew regardless of how many months were left on their previous year of car tax. An EV owner due to renew in May, for example, was able to do so free of charge before April, prolonging their tax bill until 2026. When they next come to renew, the annual rate for electric cars registered from 2017 onwards is £195. The Government opted to close the long-standing tax break for EVs in a bid to offset falling fuel duty receipts brought about by fewer people filling up at the pumps. The changes to VED – which also include increases for some petrol, diesel and hybrid drivers – are expected to raise an extra £900m for the Treasury in 2025, according to forecasts from the Office for Budget Responsibility. But with hundreds of thousands of EV owners avoiding the payment, that revenue projection is being questioned. A Treasury spokesman said: 'We are committed to maintaining a sustainable tax contribution from motoring. As with all tax policy changes, the Government sets out details on expected impacts at fiscal events.' Declining uptake The loss of free car tax means the incentives to influence EV uptake continues to decline. Unlike other European countries, Britain has not offered an electric car grant since 2022 when the Tories ended a £1,500 scheme nearly a year earlier than the industry expected. Since April, all electric models worth more than £40,000 also incur a £425 annual charge between the second and sixth years of their lifespan. With most EVs breaking the £40,000 threshold, drivers will be forced to foot a hefty £3,110 in tax bills during the first six years. Fewer than one in four drivers intend to buy an EV in the next three years, according to the Society of Motor Manufacturers and Traders. Research shows a typical EV now retains only 49pc of its value after 24 months, compared with 70pc for diesel and petrol cars, according to Cox Automotive. Sheena McGuinness, of tax firm RSM, said: 'The current price point of EVs may be unaffordable for many and driving consumers to seek out cheaper options.'
