EXPERT COMMENT: PAY PER MILE TAX

As we get closer to the Autumn budget at the end of October, news reveals that motorists might face a new car tax system in place of the current Vehicle Excise Duty (VED) system. Rhydian Jones, motoring expert at Confused.com car insurance comments:

“Heading towards the Autumn budget, there are discussions that a new pay-per-mile system for drivers on UK roads could replace the current VED charge of £190.

“This change could benefit some drivers. These include:

·        Bringing costs down for drivers who currently pay £190 on VED while barely using their vehicles. They could end up paying much less under the new system.

·        Potentially reducing congestion on roads as drivers won’t be driving as much.

·        Electric car drivers will still pay lower pay-per-mile costs, further encouraging the move towards a greener future.

“However, this system could also frustrate some drivers who are on the road more often. For example:

·        Commuters, families and those living in more rural areas could face higher costs as they take longer and more frequent journeys

·        If variable rates of road charging are used, those who have to travel at peak hours could see higher costs.

“Whatever the outcome, drivers will be waiting with anticipation to see what’s announced next month when it comes to VED, and fuel duty too. And with electric vehicle (EV) drivers expected to start paying VED from April next year, it will be interesting to see how these changes could affect EV drivers as well.”