LAST AUTO NEWS – TAX CUTS DON’T ADD UP FOR MOTORISTS
Last Auto account – Tax cuts don’t add up for motorists Alistair Darling’s pre-Budget tax tinkering will not save motorists abundant banknote for a catchbasin of fuel! We’ve done the maths, and the 13-month VAT cut will save the boilerplate disciplinarian a simple £35 â?? as the 2p per litre of petrol bead in sales tax has been countered by a 2p acceleration in ammunition duty.
Alistair Darling’s pre-Budget tax tinkering will not save motorists abundant banknote for a catchbasin of fuel! We’ve done the maths, and the 13-month VAT cut will save the boilerplate disciplinarian a simple £35 – as the 2p per litre of petrol bead in sales tax has been countered by a 2p acceleration in ammunition duty.
We formed out the active costs for a Ford Focus 1.6 petrol over 12,000 miles. As our table shows, the alone absolute extenuative comes if affairs the car new – our £15,545 Focus would amount £330 less.
But the amount of a year’s tax is set to go up by £5, while ammunition assignment will acceleration in April and afresh in January 2010. With the acknowledgment of the 17.5 per cent VAT rate, that will add at atomic 5p to anniversary litre of petrol.
VAT’s the way: How Chancellor’s amount cut will affect the boilerplate driver’s bills
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Model / Pre-Budget (Nov 2008) / Post-Budget (Dec 2008) / Saving?
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Focus Zetec 1.6 / £15,545 / £15,214 / £331
Set of tyres / £596 / £566 / £30
Service / £90 / £85 / £5
Brake pads / £38 / £35 / £3
MoT / £40 / £38 / £2
Fuel for 12,000 afar / £1,202 / £1,202 / £0
12 months’ car tax / £145 / £150 / -£5
Total / £17,656 / £17,290 / £366
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