UK Motorists Skipping Out on Taxes
July 21, 2016 Taxation in UK
LONDON – New evidence suggest that an increasing number of motorists in the UK are skipping out on vehicle taxes.
In its annual report released on July 20th the UK Driver and Vehicle Licensing Agency (DVLA) showed that revenues from the collection of vehicle tax in the UK has fallen by GBP 93 million between 2014/15 and 2015/16.
Vehicle excise duty is currently the primary tax faced by motorists in the UK, however, up to October 2014 the system used to was called the “tax disc” system.
It is believed that a significant portion of the reduction in tax revenues could be attributed to a rise in tax evasion by motorists.
Prior to the swap from the tax disc system to the vehicle excise duty, it was estimated by the government that an increase in evasion would result in a tax drop of GBP 80 million, however, the latest results show that the evasion greatly exceeded the forecast.
It was initially predicted that approximately 560 000 cars would end up being unlicensed, however it is now believed that the rate may be higher, though there are no estimates on the number of cars which remain unlicensed.
Photo By: poeloq