richmtb – Member
How much fuel duty would you need to add though?
Band G petrol car driving 10,000 miles a year @ 40mpg
= £1477 in fuel
So presumable you want this to be + £175 to cover the tax.
You would need to add 15p a litre
For a more STW version
Diesel Audi A4 (natch)
Band F = £140 tax
10,000 miles at 52 mpg = £1200
You would need to add 16p a litre to get the £140 tax back
So a couple of pennies on fuel won’t cover it
Depends what mileage equivalent you base it on doesn’t it? Summary of 2010 car usage figures
looks like 10K PA might actually exceed the overall national average for cars, although Diesels appear to do higher mileages than petrol, could be a useful differentiator there as you could adjust the “VED rate” for each fuel type…
your 16p per litre would probably be under gunning it a bit TBH, but then the goal is that over the year the “Average” motorist in the “Average” car will pay about the same in VED and those on the high side and low side proportionally more or less…
As it stands and even after Georges little adjustments someone doing ~5K of private use miles a year in your example Audi pays the same VED as someone doing 25K even though the impact of their driving patterns on the environment and wear and tear on our roads network are pretty different.
Notice i mention “Private mileage”, I’m sure that when it comes business mileage, companies and contractors will be keeping receipts and if there is some sort of business mileage VED ruling from HMRC it can be applied appropriately, they seldom miss a trick…
Like I said the better your car and your driving habits are on fuel the less VED you end up paying… seems eminently fair and sensible IMO…