Tax Disc Revenue - How is it allocated?

Honest John Back Room » Motoring discussion
View Threaded
Sun 17 Feb 2008 20:14
Tax Disc Revenue - How is it allocated? - Alby Back
I bought my new Tax disc online last night. ( Another Rock 'n Roll Saturday night in the SS household! ). Good, easy to use system though. Certainly beats hanging around in the post office. Now I'm not especially whinging about having to pay the £140 as divided by my annual mileage it comes to approx. £0.0035 per mile.
No, what I was musing over was where the money goes? I wonder what proportion disappears immediately as a result of the admin cost, the buildings and infrastructure to support and house the system and its' staff etc. etc. Our local council at least put something in the envelope telling you about your council tax bill which sets out to reassure you that they have spent it wisely and are going to be even cleverer next year.....but nothing similar in with the V11. Nary a cheap about where they are going to make improvements to the road network or eliminate potholes or whatever. Does any of this money actually find its way back to my road in the form of some tar or a bulb for streetlamp? Or is this just a handy and mildly profitable way of monitoring a vehicles legality? Once upon a time I suppose it was quite useful for this purpose but now that info. on the validity of MOT's, insurance, ownership etc. are all readily available instantly to the authorities, I just wonder what is the remaining point of this somewhat quaint system? I guess I spend about £5000 a year on fuel for my car alone and of course a thick chunk of that is tax, like I said, I don't particularly care about or lose any sleep over this extra bit but it does seem a bit rude on top of all the rest! You know if you were to imagine for a moment that this system had never previously existed and some Chancellor was to try to justify its introduction it might just sound slightly ludicrous. "You pay tax on the purchase of the car and the fuel to run it and the money you earned to buy it in the first place and I know...... lets have a tax on owning it as well!"
Reply | Report as offensive | Link
Sun 17 Feb 2008 20:16
Tax Disc Revenue - How is it allocated? - AlastairW
Silly question I'm afraid. Ever since Winston Churchill it is just tipped into the treasury black hole with the rest of our taxes to be spent at the whim of they who know better than us...
Reply | Report as offensive | Link
Sun 17 Feb 2008 20:21
Tax Disc Revenue - How is it allocated? - Bromptonaut
It's just a tax like VAT or beer duty. The money goes into the Treasury pot.

There was once a Road Fund into which the money went. It was abolished in twenties - I think Churchill was Chancellor at the time. No idea why the myth has persisted.
Reply | Report as offensive | Link
Sun 17 Feb 2008 20:24
Tax Disc Revenue - How is it allocated? - Galaxy
It's just yet another means of general taxation.

Please don't think that it's all spent on building and maintaining our roads because it certainly isn't! If this were the case then all our roads would be 8 lanes wide and as smooth as marble, but they're not.

Reply | Report as offensive | Link
Sun 17 Feb 2008 20:37
Tax Disc Revenue - How is it allocated? - Alby Back
I think I probably knew all along that it was just another wallet lightener but it is mildly disappointing not to be able to feel quite so proprietorial about the road! ;-)
Reply | Report as offensive | Link
Sun 17 Feb 2008 20:39
Tax Disc Revenue - How is it allocated? - Bromptonaut
I quick bit if internet research suggests Alistair's account is nearer the mark than mine.

Although registration tax collected by the Councils was hypothecated to the roads via a "road fund" this was the result of an informal understanding - the Treasury would probably never stand for anything else. The fund, then in surplus, was raided, emptied indeed, by the Chancellor (Churchill) in the financial crises around 1925 - 7.
Reply | Report as offensive | Link
Mon 18 Feb 2008 07:16
Tax Disc Revenue - How is it allocated? - malteser
They've just bought a bank with some of it! :(
Roger
Costa del Sol, España.
Reply | Report as offensive | Link
Mon 18 Feb 2008 09:01
Tax Disc Revenue - How is it allocated? - Armitage Shanks {p}
I don't know about proportions but some or all of the following:-

The Stupid Dome
The Stupid Olympics
The Stupid Northern Bank
Child Benefit for parents whose children are still living abroad
Benefits for people who legally have more than one wife
Safari holidays for chavs who can't comply with their ASBOs
etc etc etc

It is NOT spent on:-

Life Saving Drugs and medication
Care for the elderly
Proper equipment for our Armed Forces
The Roads
A decent State Retriement pension, except for MPs of course!
etc etc etc

Reply | Report as offensive | Link
Mon 18 Feb 2008 10:05
Tax Disc Revenue - How is it allocated? - madf
Wrong. All wrong.

RFL is high to ensure our MPs are able to live their lifestyle with free food, expenses claims with no receipts, funding children and mistresses, ensuring they can buy a London house and make £thousands tax free capital gains and world sight seeing trips (sorry, educational visits).And subisdised drinks and restaurants...

These are our legislators' prioirities.

Then its payback time for your electoral donors, foregn aid to countries like India (£1bn for the poor so India can afford nukes), and then realy helpful things like sickness benefit for people who have never worked for the last 20 years.

Road programs come near the bottom of the list.

Reply | Report as offensive | Link

A guide to how much VED you will need to pay on your car.

Road Tax Bands and Rates

From which small car to buy at which price point to the best UK-built cars, our Top 10s have the lot. Click now for your shortlist.

Unsure of what to buy? Our Top 10s are here to help you....