Tag Archives: taxes

News

Everything you might want to find out about automobile tax and VED in 2024

To legally drive your automobile, you want to concentrate on sure taxes. Possibly crucial of those taxes is car excise obligation, typically abbreviated to VED. 

But what’s it, and the way do you pay for it? We’ve gathered all the knowledge you might want to know to make sense of all of it proper right here. Read on to search out out what car excise obligation is, which autos it covers and the way you’re speculated to pay.

What is car excise obligation (VED)? 

Vehicle excise obligation is a tax paid yearly by drivers of autos which are pushed or parked on public roads. The tax covers the entire of the United Kingdom (that’s England, Wales, Scotland and Northern Ireland). 

It covers vehicles, bikes, mild items autos and heavy items autos. Taxes on vehicles aren’t a latest growth, however a number of issues have modified over time. 

VED was launched in its present kind in 2001 as a part of what the federal government claimed was a push to scale back the quantity of pollution launched into the environment. 

Where the confusion comes for a lot of drivers is the title of this particular tax. Despite typically being known as ‘road tax’, VED isn’t a tax on the highway – it’s on the autos that use it. Road tax was abolished within the Nineteen Thirties.

While many people aren’t followers of taxes, VED does herald a big sum of money for the federal government. It supposedly introduced in £7.4 billion in 2022/23 in line with the House of Commons library, and this determine is predicted to rise to £9.4bn by 2027/28. 

As of 2015’s price range, which was launched by then-chancellor George Osborne and applied in 2020 by present prime minister Rishi Sunak, all cash raised via VED goes again into sustaining the maintenance of the UK highway system. 

Further modifications got here in 2020, partly in a bid to extend the attraction of electrical car possession. VED was uprated in keeping with the retail costs index (RPI) for vehicles, vans, bikes and bike commerce licences, and switched from utilizing the NEDC emissions scale to the WLTP system to determine

How is car excise obligation calculated? 

Since 1999, VED has been calculated in line with the CO2 output of your car. Vehicles emitting extra pollution value extra to tax, as a part of efforts to steer drivers to contemplate shopping for cleaner autos.

Cars registered from 1 March 2001 to 31 March 2017 are taxed based mostly on their CO2 emissions. Cars registered on or after 1 April 2017 pay a first-year determine in line with their emissions. This will, after all, be totally different for each automobile. 

All vehicles registered on or after 1 April 2017 pay the identical flat price from the second yr and past, however vehicles with an inventory value of greater than £40,000 pay a premium, known as ‘expensive car supplement’, from years two to 6 of registration. 

Technology

You Should Think Twice Before Asking AI To Help You Do Your Taxes, Here’s Why

As quickly as generative AI is advancing, the tech will not be but in a spot the place a bot can merely do your taxes for you. But companies like TurboTax and H&R Block are using the expertise to assist customers reply questions on deductions, declarations, and credit, amongst different issues. That means AI has as a lot management over your tax filings as you are keen to offer it. 

Per some studies, you might wish to set restrictions on how a lot recommendation you search from bots when making ready to file your taxes, as AI assistants are reportedly struggling to offer correct solutions to lots of the questions they’re being requested. The Washington Post even went as far as to organize an precise take a look at for H&R Block’s AI assistant, claiming that it offered questionable solutions to about 30% of the posed questions and had little understanding of the IRS’s tips regarding cryptocurrency.  

Such numbers would appear to bolster the issues some customers have about utilizing generative AI throughout tax prep, significantly as submitting your taxes with inaccurate data can result in an IRS audit, monetary penalties, or worse, and there is little likelihood that auditors shall be giving free passes resulting from AI misinformation or hallucinations. To that time, H&R Block bosses acknowledged to WaPo that the expertise continues to be within the early levels of improvement and are encouraging customers to double-check any recommendation offered by AI assistants. 

Motorsport

Hyundai Performance Cars Could Go Hybrid Before Going Electric

Amid more and more stringent emissions rules and better taxes on automobiles with large-displacement engines, the longer term does not look good for combustion-powered efficiency automobiles. Hyundai just killed the i20 N and i30 N in Europe the place automakers face the hardest laws anyplace. However, not all hope is misplaced for a enjoyable automotive with an inside combustion engine.

Speaking with Australian journal Drive, Hyundai’s present Executive Technical Advisor and former R&D boss mentioned a hybrid powertrain is a chance value exploring. Albert Biermann—who was one of many driving forces behind the creation of the N division—confirmed stronger hybrid setups are being developed. Not only for the Hyundai model, but in addition for the luxury-oriented Genesis marque. As a reminder, the Hyundai Motor Group additionally owns a couple of third of Kia.

Biermann mentioned the Elantra N (aka i30 Sedan N) “could be an option—technically it’s in there.” He avoided confirming whether or not the efficiency sedan might be electrified however admitted it is technically potential. Let’s understand that Hyundai has already confirmed a next-generation mannequin with a gasoline engine, suggesting it would even get an even bigger ICE.  The turbocharged 2.5-liter unit can be a pleasant bump over the present 2.0-liter engine.

2024 Hyundai Elantra N

In its present type, the Elantra N has 276 horsepower whereas the bigger engine is rated at 290 hp within the Sonata N Line and as a lot as 300 hp within the Genesis G70. Of course, including an electrical motor would enhance the output much more. If authorised, it won’t be the one hybrid N automotive from Hyundai as Biermann says he’s making an attempt to persuade the higher-ups to green-light a smaller electrified N. However, the mission continues to be in its infancy.

Hyundai is already wanting forward, having simply launched the absolutely electrical Ioniq 5 N crossover. There are additionally experiences of an Ioniq 6 N sedan, probably with extra energy. Biermann defined the Korean automaker needs to cowl all of the bases by catering to totally different tastes whereas assembly ever-changing rules. The ex-BMW M boss argued {that a} hybrid powertrain would bridge the hole between efficiency automobiles with pure combustion engine automobiles and full EVs.

Toyota has one other thought of how sports activities automobiles with combustion engines could be saved. It’s toying round with the concept of making ICE run on hydrogen instead of gasoline. To that finish, it has already constructed and examined prototypes of GR Yaris and GR Corolla sizzling hatches on the observe.

On the identical be aware, Austrian firm AVL Racetech has engineered a turbocharged 2.0-liter four-cylinder engine that runs on hydrogen. It makes a wholesome 405 horsepower and 375 pound-feet (508 Newton-meters) of torque.

Porsche has a special method because it believes artificial gas may very well be an answer. It’s been producing nearly carbon-neutral e-fuel at its manufacturing facility in Chile since late 2022 when it celebrated the milestone by submitting up a 911. Although Porsche is a part of the Volkswagen Group, VW model boss Thomas Schäfer claims all this discuss prolonging the lifetime of combustion engines is thrashing a lifeless horse. He claims discussions about e-fuels are “unnecessary noise” since combustion engines symbolize “old technology.”

News

Tax hike for pick-ups reversed by UK authorities

One week on from proposed new company car taxes for double-cab pick-up vehicles HMRC has scrapped the plans.

Company automobile scheme customers who purchased or leased a double-cab pick-up truck had been as a result of see the benefit in kind (BIK) funds sky rocket below proposals introduced on 12 February, however in a dramatic U-turn after criticism from farmers and the motor trade it has reversed its determination.

HRMC had introduced that they’d not take into account double-cab pick-up trucks as industrial autos, as their second row of seats allowed them to have a twin perform as a private car.

The change to firm automobile tax BIK for double-cab pick-up vehicles was as a result of be applied on all new purchases or leases from 1 July 2024, and would have meant house owners not paid a flat fee of BIK for all industrial autos and as a substitute be taxed utilizing the emissions-based system used for passenger vehicles.

Double-cab pick-up house owners would due to this fact seemingly have been lumbered with the very best 37% fee of BIK because of the excessive CO2 emissions of most pick-up vehicles.

In a press release, HMRC stated “its existing guidance will be withdrawn” and that double-cab pick-ups would “continue to be treated as goods vehicles rather than cars”. As a outcome, “businesses and individuals can continue to benefit from its historic tax treatment”.

The preliminary determination was as a result of a ruling within the Court of Appeal that said multi-purpose autos like pick-up vehicles are passenger vehicles, after HMRC received a case towards Coca-Cola over the classification of five-seat vans.

The repercussions of that ruling had meant that the tax “loophole” permitting pick-up vehicles to be classed as industrial autos was forged into doubt, threatening the excessive quantity of gross sales for pick-up vehicles within the UK.

Despite the change of coronary heart, nevertheless, it’s going to solely have an effect on double-cab pick-ups with a payload of multiple tonne. Double-cab pick-ups with payloads under 1000kg, just like the Ford Ranger Raptor, will proceed to be classed as passenger vehicles.

News

Car tax: all the things you might want to learn about automobile excise responsibility

There are a number of taxes you might want to learn about to legally drive your automotive. One of a very powerful is automobile excise responsibility, usually abbreviated to VED. 

Having so many taxes may be complicated, so we’ve gathered all the knowledge you might want to know to make sense of all of it proper right here. 

So learn on to search out out what automobile excise responsibility is, which autos it covers and the way you’re alleged to pay. 

What is automobile excise responsibility (VED)? 

Vehicle excise responsibility is a tax paid yearly by drivers of autos which might be used (or parked) on public roads. The tax covers the entire of the United Kingdom (that’s England, Wales, Scotland and Northern Ireland). 

The tax covers automobiles, mild items autos, heavy items autos and bikes, and was launched in its present kind in 2001 as a part of a push to scale back pollution being launched into the environment. 

Despite usually being known as ‘road tax’, VED isn’t a tax on the street. It’s on the autos that use it. Road tax was abolished within the Nineteen Thirties.

While many people aren’t followers of taxes, VED brings in vital cash for the federal government. According to the House of Commons library, the tax introduced in £7.4 billion in 2022/23. This determine is predicted to rise to £9.4bn by 2027/28. 

As of 2015’s funds, which was launched by then-chancellor George Osborne and carried out in 2020 by present prime minister Rishi Sunak, all cash raised by way of VED goes again into sustaining the maintenance of the UK street system. 

Further modifications got here in 2020, partly in a bid to extend the attraction of electrical automobile possession. VED was uprated according to the retail costs index (RPI) for automobiles, vans, bikes and motorbike commerce licences, and switched from utilizing the NEDC emissions scale to the WLTP system to ascertain tax bands. You can see the place your automotive would possibly fall within the desk additional down the web page. 

How is automobile excise responsibility calculated? 

Since 1999, VED is calculated in line with the CO2 output of your automobile. Vehicles emitting extra pollution value extra to tax, as a part of efforts to steer drivers to think about shopping for cleaner autos.

Cars registered from 1 March 2001 to 31 March 2017 are taxed based mostly on their CO2 emissions.

Cars registered on or after 1 April 2017 pay a first-year determine in line with their emissions. This will, in fact, be completely different for each automotive. 

All automobiles registered on or after 1 April 2017 pay the identical flat fee from the second 12 months and past, however automobiles with a listing worth of greater than £40,000 pay a premium, referred to as ‘expensive car supplement’, from years two to 6 of registration. 

Motorsport

Mercedes CLS And Rolls-Royce Ghost Hearses Are Posh Rides To The Afterlife

The saying that death and taxes are unavoidable is still very true. While some people find ways to avoid paying taxes, no one can escape death. When that unfortunate event occurs, why not depart in style with a luxurious hearse? The Italian company Biemme specializes in converting luxurious models for the journey to the afterlife, and some of the conversions are quite interesting, or should we say, unusual.

One of these conversions, named “Aymon,” is a fancy hearse made from the Mercedes CLS. Ironically, the CLS itself is no longer in production as it ended in August. The conversion maintains the rear seats and doors while adding a sizable coffin compartment with a shatterproof divider. Additionally, Biemme has reinforced the body structure with external moldings and stainless steel. It also installed a glass rear door and retained the spare wheel.


Featured

Prepare to Pay Higher Tolls Every Year


The NHAI plans to increase taxes on road users to recover its debt

Yamuna Expressway Toll Plaza

Traveling by road and between cities already costs a significant amount in terms of fuel and toll taxes. The NHAI has now decided to make highway journeys even more expensive by increasing the toll prices paid for road usage.

Reasons for High Toll Taxes

Toll Plaza

Reportedly, the NHAI has an outstanding debt of Rs 3.43 lakh crore, which it intends to recover through various methods. One of the primary approaches is increasing tolls on highways and expressways. With the construction of new highways and expressways, the collection of toll taxes will expand, helping the NHAI recover its debts more quickly.

Also Read: Elon Musk Confirms Tesla India Debut After Meeting Prime Minister Narendra Modi

According to an NHAI representative, toll taxes are set to increase by almost 10 percent each year for the next decade, leading to more expensive travel in the coming years.

Projections for 3 Major Expressways and Their Tolls

Yamuna Expressway

India has several national highways and a few expressways, with more in the works. Among these, three major expressways connect major cities across the country. Let’s calculate the tolls for these routes based on the NHAI’s plans.

Yamuna Expressway (Delhi – Agra): By FY 2023-24, the toll on this expressway for a car will be Rs 440 (one way). Assuming a 10 percent increase in taxes, the toll will reach Rs 484 in FY 2024-25 and could reach Rs 1140 after 10 years.

Yashwantrao Chavan Expressway (Mumbai – Pune): Currently, this car journey costs Rs 320. In the next financial year, it will rise to Rs 352, and after 10 years, it may cost Rs 830.

Delhi – Jaipur Expressway: For a car, the one-way toll on this route is currently Rs 305. After one year, it will increase to Rs 335, and in 10 years, it could be around Rs 790.

These tolls will particularly affect commercial vehicle drivers, such as truck drivers, who already pay higher fees than car users. This will result in increased logistics costs for various industries, which in turn will lead to higher prices for products. Thus, the rising toll rates will impact both highway travelers and the general public.

Other Methods of Debt Recovery

Petrol Pump

Although toll taxes will contribute significantly to debt recovery, they are not the only source of income for the NHAI. The organization can generate additional revenue by establishing more fuel pumps, electric vehicle charging stations, food courts, and other service-related infrastructure. This will benefit the public by improving infrastructure and increasing sales and rental income for the NHAI.

Also Read: Ola Gigafactory For Its Own Battery Cells Now Under Construction

However, with the NHAI’s plan and the frequent increase in fuel prices, travel expenses will undoubtedly rise. Share your thoughts on this development in the comments section below.

Featured

These 5 SUVs Sold in India are Priced Much Higher in Nepal


Due to high import taxes, even non-luxury cars can cross the Rs 1 crore threshold in the neighbouring nation

Nepal, our neighbouring country that shares its mountains with us, is a market for many international carmakers, including some from India. Carmakers that operate in both India and Nepal have a similar lineup in both countries, but the prices vary significantly. Some of the popular cars sold in India are three times more expensive in Nepal. Here are five examples of eye-watering price differences due to import tariffs:

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Hyundai Creta

Hyundai Creta

Price in India

Price in Nepal 

Converted Price

Rs 10.87 lakh to Rs 19.20 lakh

NPR 49.96 lakh to NPR 78.96 lakh

Rs 31.23 lakh to Rs 49.36 lakh

The Hyundai Creta, which was launched in Nepal in 2015, is more than 2.5 times as expensive as in India. In Nepal, the Creta comes with the same powertrains as the India-spec compact SUV. It is available with a 116PS, 1.5-litre diesel engine paired with a 6-speed manual and 6-speed automatic transmission, and a 115PS, 1.5-litre petrol engine which comes with a 6-speed manual and a CVT gearbox.

Maruti Grand Vitara

Maruti Grand Vitara

Price in India

Price in Nepal 

Converted Price

Rs 10.70 lakh to Rs 19.79 lakh

NPR 63.99 lakh to NPR 88.29 lakh

Rs 40 lakh to Rs 55.13 lakh

The Maruti Grand Vitara was launched in India in September last year, and this year in March, it made its way to the Nepal market as the Suzuki Grand Vitara. As shown in the table above, the price of the top-spec variant of this Maruti model is nearly three times higher in Nepal compared to India.

Also Read: Did The Maruti Jimny Prices Miss Their Mark?

In Nepal, the Suzuki SUV is equipped with the same petrol and strong hybrid powertrain options as the India-spec model. It also has the same variant-list and feature distribution.

Tata Safari

Tata Safari Red Dark Edition

Price in India

Price in Nepal 

Converted Price

Rs 15.65 lakh to Rs 25.02 lakh

NPR 92.49 lakh to NPR Rs 1.09 Crore

Rs 57.74 lakh to Rs 68.04 lakh

Except for the Tata Tigor EV and Punch, Nepal offers the full lineup from Tata Motors. The Tata Safari was launched in Nepal six months after its release in India in 2021. In Nepal, the price of the Safari crosses the NPR 1 crore mark, and when converted to Indian currency, the top-spec variant is close to Rs 70 lakh.

Also See: Facelifted Tata Safari’s Cabin To Be Heavily Revamped According To First Spy Shots

Similar to India, the Tata Safari is equipped with a 2-litre diesel engine (170PS/350Nm) in Nepal, available with either a 6-speed manual or a 6-speed automatic transmission. However, Tata Motors does not offer any special editions in Nepal, such as the Dark, Red Dark, and Adventure editions.

Hyundai Tucson

Hyundai Tucson

Price in India

Price in Nepal 

Converted Price

Rs 28.63 lakh to Rs 35.46 lakh

NPR 1.08 crore to NPR 1.63 Rs crore

Rs 67.50 lakh to Rs 1.02 crore

In contrast to India, Nepal offers a wider range of premium Hyundai SUVs. The Hyundai Tucson, the largest SUV sold by the Korean automaker in India, is also available in Nepal for a significantly higher price. The top-spec variant of the Tucson, which is priced at Rs 35.46 lakh in India, costs Rs 1.02 crore in Nepal.

Also Read: Hyundai Exter SUV Starts Rolling Off The Production Line Ahead Of Launch

In Nepal, the Hyundai Tucson is equipped with the same 2-litre petrol engine (156PS/192Nm) and diesel engine (186PS/416Nm) as the India-spec model. Additionally, Nepal also offers a 1.6-litre turbo-petrol engine (180PS/265Nm) that is not available in India, along with a manual gearbox option for the larger petrol engine, which is absent in India.

Toyota Fortuner

Toyota Fortuner

Price in India

Price in Nepal 

Converted Price

Rs 32.59 lakh to Rs 50.34 lakh

NPR 2.22 crore to NPR 2.32 crore

Rs 1.39 crore to Rs 1.45 crore

Lastly, the Toyota Fortuner, which is already quite expensive in India, is the most expensive model on this list. Even the base-spec model in Nepal starts from Rs 1.39 crore in Indian currency. In Nepal, the Fortuner is available with the 2.8-litre turbo-diesel engine (204PS/ up to 500Nm) paired with a 6-speed manual and a 6-speed automatic transmission, and it comes with 4WD.

Also Read: You Will Have To Wait For Up To 8 Months For A Toyota Innova Hycross

The India-spec model also offers a 2.7-litre petrol engine (166PS/245Nm) with a 5-speed manual and a 6-speed automatic transmission, with the option of a two-wheel-drive system. However, the Fortuner Legender is not available in Nepal.

Reason for Such High Prices

None of these models are manufactured in Nepal and are brought into the country as imports. While several factors affect the pricing of a car, import tariffs play a significant role. The high import tariffs imposed by the Nepalese government make cars very expensive.

Also Read: Elon Musk Confirms Tesla India Debut After Meeting Prime Minister Narendra Modi

While the Indian government also imposes heavy tariffs on imported cars, making them almost twice as expensive, the tariffs imposed by the Nepalese government outweigh those in India by a significant margin.

Let us know in the comments below which one of these models surprised you the most with its prices.

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