Electric cars.

Pete, I reckon if you asked that question of 100 tax experts you would get 100 different answers!

 

Let's say someone earns £2000 per month, or £500 per week

Income tax and NI - £346.41
Council tax - £180 pcm (average)

So that is £526.41 before they start. If they spend £140 per month on diesel to get them to work, that has VAT of £23.33 and fuel duty of £38.40; Tax now up to £588.14 per month.

Gas and electricity bill of £200 per month is said to be 25% green levies (£50) and VAT at £9.52; Tax now up to £647.66.
Vehicle Excise Duty adds a further £12-£15 per month, so lets be nice to the government and call it £12; Tax now up to £659.66

Then there is 20% VAT on pretty much everything they need to buy, except some foodstuffs, shoes and clothing. So if they spend £300 per month. let's be nice and say half of it is taxable - £25; Tax now up to £684.66

If they treat themselves to one bottle of spirits in a month, that adds a further £8.05; Tax now at £692.71. To be fair, looking at their tax bill and knowing that rent for a two bedroom home is around £1200 to £1500, I wouldn't blame them if they had more than one bottle....

Of £2k earned, it is near as dammit £700, so that is about 35p in the pound is pure tax.

 

I think that only covers the basics if truth be told - if you add on things such as the VAT you pay on appliances, carpeting, furnishings and so on, there is a good old chunk taken out of your pocket. Kinda puts into perspective why people are struggling too, when you see figures like that.

We are just expected to be able to go and shell out on buying/leasing electric vehicles as though it is water of a ducks back - I looked this morning at lease deals on EV's and the cheapest was £500 per month for an MG 5. I pay a hell of a lot less than that for a diesel Jag.

 

I am merely at the 'learning' stage - I take ages to work out and research before I get anywhere near buying anything; there is a but in there though, and that is that I will have to at some point in a year or so as that will then be D-Day for the current car. Much as it is a lovely car, nothing wrong with it at all, I am not sure that I want to commit to refinancing it for a further 3 years to own it outright. So, the option there is to trade it or hand it back - the end result being the same.

The current one fails quite badly on practicality and as my mobility is pretty shot as well, it can be a bit 'low slung' at times for me to get into.... I manage, but it could be better. However, hitting the practicality box as well as the environmental/money saving box seems to be impossible.

Current research is leading me down two paths, and I am watching used prices to see where they head:

Economy/running costs:
- BMW 530e is out in front (electric/petrol PHEV)
- MG ZS EV cheap, not particularly well built, fully electric, but has 7 year warranty (this one would be a real leap though, as I simply don't like them)
- Dacia Jogger - just accept that it is what it is, run it for a few years and bridge the gap until newer stuff comes along (petrol/LPG which I am not a fan of either)

Practicality:
- Land Rover Discovery Sport currently winning (surprised me too!), diesel again but would just have to accept that there is a cost to fuel and that is that. This one would dovetail nicely in with an idea to try and save up for a caravan and at least get some sort of holiday, as they even come with the towbar as standard.
- Range Rover Evoke (about as reliable as a politician from what I can gather and a bit of a trinket, so not really a likely choice)
- Volvo XC40 (or even XC60) petrol/electric hybrids; I really like these, but the prices are just stupid at the moment.

Watching and waiting....

 

My mum's neighbour is getting an MG ZS EV in the next few weeks and they've been to install the charging point for it in his driveway. The electricians installing it have apparently had to request access to my mum's house to do something with her supply to make sure that her house doesn't go off when he plugs his car in! They are also having to do the next house down as well. It is no problem as they are good neighbours and all get along, but can you imagine if that wasn't the case?