Proposed Increase in Vehicle Duty

[x-in-man]

Has it been looked into how much income will be lost with a  6 month tax when it comes to seasonal use vehicles?

As an example an owner has two vehicles.

Both cost £100 to tax for a year.

Total VED income for a year is £200.

Using a seasonal vehicle for the warmer months reverting to a winter vehicle in the winter.. total VED for the two vehicles would then be £100 (plus a bit for the 6 month tax to cover admin).

 

[Happier diner]

1 hour ago, Nellie said:

AFAIK there is currently no mechanism for a member of public to report an untaxed vehicle, apart from advising the Police, who won't be interested, unless it's Martin Moore, again. The DoI 'Report-a-Problem' app allows you to report an abandoned vehicle, although doesn't define what constitutes abandoned.

Enforcement seems very patchy. A couple of years ago, the DoI and Police set up a sting with the ANPR camera, on a Saturday night, outside the Hawthorn. They pulled a guy in a Fiesta who had tax expired a month before. They had the car towed away by Hadyn Minay and the driver and passengers had to continue their journey on the bus! He must have felt pretty unlucky. I've no problem with that as a process, as long as it is consistent, but you can walk along Douglas Prom every day and see untaxed vehicles that are there, day in, day out.

 

You can report them at abandoned.vehicles@gov.im

[Happier diner]

34 minutes ago, The Voice of Reason said:

Thank you for your answer.

Thank you for thanking him for his answer. 

[Happier diner]

6 minutes ago, x-in-man said:

Has it been looked into how much income will be lost with a  6 month tax when it comes to seasonal use vehicles?

As an example an owner has two vehicles.

Both cost £100 to tax for a year.

Total VED income for a year is £200.

Using a seasonal vehicle for the warmer months reverting to a winter vehicle in the winter.. total VED for the two vehicles would then be £100 (plus a bit for the 6 month tax to cover admin).

 

It's not worth worrying about. The number of seasonal vehicles will be negligible. 

[Nellie]

8 minutes ago, Happier diner said:

You can report them at abandoned.vehicles@gov.im

You can report 'abandoned' vehicles.

Although there is no definition of abandoned given by DoI, a reasonable definition could be - untaxed, parked on a public highway, and not being used. That is fairly straight forward, and I know from the odd report I've submitted, the DoI deal with these very quickly.

But there is no mechanism for reporting vehicles which are untaxed, are clearly not abandoned, and are being used on the public highway. 

[offshoremanxman]

42 minutes ago, Happier diner said:

It's not worth worrying about. The number of seasonal vehicles will be negligible. 

There will be a lot of motor homes and motorcycles that will be seasonal use only. 

[Happier diner]

35 minutes ago, Nellie said:

You can report 'abandoned' vehicles.

Although there is no definition of abandoned given by DoI, a reasonable definition could be - untaxed, parked on a public highway, and not being used. That is fairly straight forward, and I know from the odd report I've submitted, the DoI deal with these very quickly.

But there is no mechanism for reporting vehicles which are untaxed, are clearly not abandoned, and are being used on the public highway. 

Just use the email address I sent you. It works. You can report untaxed vehicles and illegally parked vehicles.

[Happier diner]

11 minutes ago, offshoremanxman said:

There will be a lot of motor homes and motorcycles that will be seasonal use only. 

So what. If they are only used for 6 months and then off the road, what's the issue. 

[Chris Thomas]

1 hour ago, x-in-man said:

Has it been looked into how much income will be lost with a  6 month tax when it comes to seasonal use vehicles?

As an example an owner has two vehicles.

Both cost £100 to tax for a year.

Total VED income for a year is £200.

Using a seasonal vehicle for the warmer months reverting to a winter vehicle in the winter.. total VED for the two vehicles would then be £100 (plus a bit for the 6 month tax to cover admin).

 

You are right - the 6 month option will reduce the total of vehicle duty. It is hard to estimate this reduction but it could be hundreds of thousands a year

Edited February 26, 2023 by Chris Thomas

[offshoremanxman]

4 minutes ago, Happier diner said:

So what. If they are only used for 6 months and then off the road, what's the issue. 

But you said it was negligible but it won’t be negligible. It really must have taken the DOI quite some time to find the most ridiculous, convoluted, silly process for allegedly helping struggling people to be able to afford to pay road tax in installments which actually rewards wealthier leisure vehicle owners for owning more than one vehicle that they don’t use for half the year. 

Edited February 26, 2023 by offshoremanxman

[HiVibes]

42 minutes ago, Chris Thomas said:

You are right - the 6 month option will reduce the total of vehicle duty. It is hard to estimate this reduction but it could be hundreds of thousands a year

Why do it then  and what was the driving force? Surely the option people wanted was paying yearly road tax in instalments, not some get out of taxing a vehicle for 6 months a year, and how does that make sense when you would have to insure the vehicle for the full year, or pay sky high short term insurance premiums?

[AcousticallyChallenged]

1 minute ago, HiVibes said:

would have to insure the vehicle for the full year, or pay sky high short term insurance premiums?

Typically, bike, classic and camper insurance is dirt cheap here as there’s no real risk of theft. So, a multi vehicle policy or even a bespoke policy can be notably less than the tax for the vehicle. 

[HiVibes]

Just now, AcousticallyChallenged said:

Typically, bike, classic and camper insurance is dirt cheap here as there’s no real risk of theft. So, a multi vehicle policy or even a bespoke policy can be notably less than the tax for the vehicle. 

My actual point was why change policy when no one asked for it, what some people wanted was instalment payments not a half tax year, and as insurance does not offer half years you end up with a car that is insured but not covered other than on your drive, just a stupid situation that will likely lead to more untaxed uncovered vehicles being driven on the roads whilst reducing revenue. Really we needed to make second cars taxed at a higher rate not a lower one.

[Roger Mexico]

3 hours ago, Nellie said:

You can report 'abandoned' vehicles.

Although there is no definition of abandoned given by DoI, a reasonable definition could be - untaxed, parked on a public highway, and not being used. That is fairly straight forward, and I know from the odd report I've submitted, the DoI deal with these very quickly.

But there is no mechanism for reporting vehicles which are untaxed, are clearly not abandoned, and are being used on the public highway. 

But a non-abandoned car that is still in use isn't a matter for the DoI - it's a matter for the police, as the driver is driving around in an untaxed vehicle, and should be reported to them.

[Non-Believer]

IMHO, a thoroughly unconvincing justification for the proposed increases and a considerable number of points left unanswered. Either Mr Thomas or Mr Peters is posting/has posted inaccurate information IMO.

Six month "option" or not, I can see some people being priced off the roads with these proposals, which apart from affecting what they may be contributing to the other areas of the economy may lead to further "considerable losses" in VED take for the DOI - and we know what the DOI's answer to that will then be - further raises for those still able to pay.