road tax

[ajlsl600]

just heard the state raise more than 32 billion from taxing road users.... authorities say they need 12 billion to fix roads ...whats the problem ????????????????

 

[Blobcat]

The problem is that it is VED - Vehicle Excise Duty therefore no longer linked to roads and goes straight to the Exchequer...

As it's no longer RFL they can put toll roads in an don't have to use it for maintenance / repair of the roads

 

[rifiki]

EU, I believe all RFL money had to be spent on roads so the government chanced the name to VED.

 

[LostKiwi]

EU, I believe all RFL money had to be spent on roads so the government chanced the name to VED.

Pesky EU....

 

[hopeful]

Pesky EU...

oh thats polite sir

 

[ajlsl600]

not for much longer,it seems.

 

[Frontstep]

Do we hypothecate any tax apart from maybe NI contributions sort of, more of a question for a tax expert which isn't me, I long ago decided I would never live long enough to master the tax system.

 

[d215yq]

Do we hypothecate any tax apart from maybe NI contributions sort of, more of a question for a tax expert which isn't me, I long ago decided I would never live long enough to master the tax system.

No we don't. NI was set-up to provide social security but it no longer provides even 10% of the budget - hence why in a sensible world it would be abolished entirely and included in the income tax rate - they wouldnt want more poeple understanding the simpler tax system though.

I can't think of anything anywhere that is hypothecated and I work in tax - and IMO nor should it be - it all sounds nice in theory but tax is used to cover externalities, which are negative for transport (pollution, injuries, congestion), so it's good it's not hypothecated.

There are some free market think tanks which are attempting to allow rich taxpayers to "decide" where their tax money goes (e.g. health, education, defense), but this would also not work as it would no doubt be copmpensated for in the "general" budget. It also goes against the whole ethos is tax - at the end of the day nobody likes to pay it but it is the price for living in a safe civilised society with proper services and this only works by people accepting that tax is not "their" money and is not up to them to decide if it should be hypothecated or spent according to their priorities.

 

[Frontstep]

No we don't. NI was set-up to provide social security but it no longer provides even 10% of the budget - hence why in a sensible world it would be abolished entirely and included in the income tax rate - they wouldnt want more poeple understanding the simpler tax system though.

I can't think of anything anywhere that is hypothecated and I work in tax - and IMO nor should it be - it all sounds nice in theory but tax is used to cover externalities, which are negative for transport (pollution, injuries, congestion), so it's good it's not hypothecated.

There are some free market think tanks which are attempting to allow rich taxpayers to "decide" where their tax money goes (e.g. health, education, defense), but this would also not work as it would no doubt be copmpensated for in the "general" budget. It also goes against the whole ethos is tax - at the end of the day nobody likes to pay it but it is the price for living in a safe civilised society with proper services and this only works by people accepting that tax is not "their" money and is not up to them to decide if it should be hypothecated or spent according to their priorities.

TV Licence ?

NI is an anachronism but its separation gives it a sense of purpose which as you rightly point out is illusory but how else do you serve up taxes except in slices, one big lump is unpalatable.

The American system where rich people "give back" to their pet causes is nauseating and leads to some outrageous gaps in basic provision.

 

[ajlsl600]

grand ,but its a fact that a LOT of tax is handed out to very wasteful causes. think most can cope with taxes for health, UK social requirements but handing it out as aid ,often stolen by the recipient state and to people swimming over to our beaches is depriving our GENUINE low income citizens .. and i wont support that.

 

[LostKiwi]

Pesky EU...

oh thats polite sir

It was irony...

 

[John Laidlaw]

What is this road tax or VED you speak of?

 

[hopeful]

lol

 

[Blobcat]

What is this road tax or VED you speak of?

You still have it, my Smart is the same, big fat Zero

 

[LostKiwi]

You still have it, my Smart is the same, big fat Zero

Another reason to look at 1960s cars....

 

[malcolm E53 AMG]

Electric cars won’t be immune to VED for long enjoy it while it lasts.

The trouble with taxation is that most of it is centralised and our friends in Westminster decide where it’s spent. The spend per capita in London compared to the rest of the UK must make good reading.

 

[davemercedes]

Not only will the new "green" vehicles get taxed but those of us who can't afford to replace our treasured and well serviced older cars and especially diesel will be progressively and harder "clobbered" as the powers that be set out to "encourage" the change to electric...

They will also need loads of £olly soon to replace the huge amounts of funds (which don't exist if the previous five years "no money" spiel was true) that have already been committed in the last few weeks as austerity was "banished".

btw: Remember all that talk about a government scrapping scheme?

 

[LostKiwi]

Remember all that talk about a government scrapping scheme?

Is that the one where we can scrap the monkeys in parliament?

 

[davemercedes]

Ahh err... no. They're all exempt.
- Apparently.