New car tax pay per mile changes may encourage drivers to ‘cheat’ and ‘avoid paying’

Martin Lewis gives money-saving advice on VED car tax

A new car tax system could see many drovers tempted to use an “illegitimate means to avoid paying tax” on the roads. He warns some drivers could introduce technology to a black box system which would “camouflage” the real mileage they have driven.

This would leave some drivers able to “falsify” their mileage and pay less than what they have actually driven.

Speaking exclusively to Express.co.uk, Mr Freeman said: “If you start charging people per mile then people are going to start trying to cheat.

“There are systems that can be put into place and software which can be introduced to interfere with the black box.

“Their travelling would be camouflaged, it would be masked.

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“They would avoid paying the correct duty by falsifying their mileage.

“People would be tempted to do it, people are always tempted to try and find a shortcut.

“This isn’t a loophole because it’s illegal, it’s just an illegitimate means to avoid paying tax.”

Confused.com says black box devices which are installed in cars for insurance purposes are “sealed” and “tamper-proof”.

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However, it has not yet been confirmed whether any black boxes will be installed in cars under a pay per mile scheme or if they would be similar to insurance devices.

There are also concerns whether any black box tracker device would have any issues which could go against drivers.

Last year it was revealed insurers have sometimes told customers they were driving badly when their cars were parked up.

One driver was accused of driving over the English Channel to France when his car was stationary on a ferry.

The Financial Ombudsman Service also found a telematics device had indicated a driver was worse behind the wheel than they actually were.

The issues may stem from the fact telematics devices do not relay all information in real-time.

This is instead done in stages leaving important information or facts about a journey if the box loses signal.

The new car tax proposals are being considered to fill a £40billion hole in public spending caused by the introduction of electric cars.

Government revenues will take a hit as more cars switch to electric vehicles through the loss of traditional Vehicle Excise Duty and fuel duty charges.

Mr Freeman told Express.co.uk: “I’d be very concerned about the black box because it’s an invasion of privacy and it’s open to abuse.

“I don’t think we need it and I don’t think society would tolerate it.”

The Department for Transport has noxt yet confirmed any road pricing structures despite rumours a scheme could be on its way.

They said it was important revenue from car tax continued to “keep pace” with the changes on the road to continue to fund public infrastructure.

They said any new changes to the tax system would be considered by the Chancellor with any further steps announced in due course.

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