Regulation & Compliance Road Tax – Vehicle Excise Duty Fact Sheet – October 2018
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Regulation & Compliance Road Tax – Vehicle Excise Duty Fact Sheet – October 2018 Background The majority of vehicles driven on UK roads have to pay Vehicle Excise Duty (VED, also know as road fund licence). This page provides guidance to members on the current rates, how to pay and obtain refunds. How is VED calculated for cars? The vehicle excise duty is calculated based on the CO2 emissions of the car for the first year of registration and the list price of the car in years 2 to 7. If the list price of the car is over £40,000 a more expensive rate of VED is payable in years 2 to 7. The list price includes the price of the vehicle and any non-standard accessory which is attached to the vehicle when it is first registered. This includes: • Manufacturers Recommended Retail Price • The price of any non-standard option – fitted by the manufacturer • VAT • Electric cars – if the battery is leased then the cost of the battery constitutes parts of the list price • Delivery charges including pre delivery inspection charges It does not include: • Warranty / insurance and service packages etc • Any non-standard accessory – fitted by the dealer • Modifications such as ‘police packs’, ambulance / fire engine modifications • Modifications for disabled drivers The purpose of this fact sheet is to provide general guidance and information only. Although every effort is made to ensure that the content is accurate, the BVRLA cannot accept any liability whatsoever for any inaccuracy contained within it, nor for any damage or loss, direct or indirect, which may be suffered as a result of any reliance placed upon the information provided, whether arising in contract, tort or in any other way. Advice should always be obtained from your own professional advisers before committing to a specific action. Regulation & Compliance • First registration fee and cost of first licence The DVLA’s view vehicle record, which allows a company to view their fleet of vehicles does not display the list price but includes a field which shows when the additional rate of VED is payable until. Full details of the current rates are available here. From 1 April 2019 the rates are as follows: CO2 First Year rate First Year Rate Standard Rate emissions (g/km) £ (Diesel)3 0 £0 £0 £0 1-50 £10 £25 £145 51-75 £25 £110 £145 76-90 £110 £130 £145 91-100 £130 £150 £145 101-110 £150 £170 £145 110-130 £170 £210 £145 131-150 £210 £530 £145 151-170 £530 £855 £145 171-190 £855 £1280 £145 191-225 £1280 £1815 £145 226-255 £1815 £2135 £145 Over 255 £2135 £2135 £145 Notes: 1. Alternative fuel discount: 2011 onwards, £10 all cars. 2. Includes cars emitting over 225 g/km registered before 23 March 2006 3. The supplement will not apply if the diesel car meets Real Driving Emissions Step 2 (RDE2) standards Vehicle Tax Rate (years 2 to Tax Rate (year 7 6) onwards) Zero emission cars costing less than £40,000 £0 £0 Cars costing less than £40,000 £145 £145 Cars costing more than £40,000 registered up to £145 + £320 = £465 £145 31 March 2019 Zero emission cars costing more than £40,000 £330 £0 The purpose of this fact sheet is to provide general guidance and information only. Although every effort is made to ensure that the content is accurate, the BVRLA cannot accept any liability whatsoever for any inaccuracy contained within it, nor for any damage or loss, direct or indirect, which may be suffered as a result of any reliance placed upon the information provided, whether arising in contract, tort or in any other way. Advice should always be obtained from your own professional advisers before committing to a specific action. Regulation & Compliance The CO2 figure is allocated to the car prior to first registration (shown in grammes per km) it is measured as part of the car’s Type Approval Test. If you want to find out the CO2 emissions of your vehicle the link below will assist you further: http://carfueldata.direct.gov.uk/ To keep things simple for VED purposes, the CO2 emission figure remains fixed for the car’s life. How do I get a refund for a car I have sold? Refunds of first year licence (FYL) are calculated as follows: Cars £40,000 and under • Cars with CO2 emissions of 100g or below, refund based on FYL actually paid • Cars with CO2 emissions above 101g, refund based on the £140 rate Cars above £40,000 • Cars with CO2 emissions of 150g or below, refund based on FYL actually paid • Cars with CO2 emissions above 150g, refund based on the £450 rate Practical examples Audi A4 all road – CO2 emissions 145, list price £26,350.00 The tax in year 1 on this vehicle would be £200. If the vehicle was sold in month 6, the refund would be based on the £140 rate so the rental or leasing company would be losing out on £30.00. VED for Cars and Light Goods Vehicles (not over 3,500kg) The table below provides the VED rates for cars registered prior to 1 March 2001 and light goods vehicles before and after March 2001. Engine size Registration Date Rates from 1 April Rates from 1 April 2018 2019 Private Light Goods Tax Class (11) (goods vehicles weighing no more than 3500kgs) Not over 1549cc before 1 March 2001 £155 Over 1549cc before 1 March 2001 £255 Light goods vehicles Tax Class 39 (weighing no more than 3500kg) The purpose of this fact sheet is to provide general guidance and information only. Although every effort is made to ensure that the content is accurate, the BVRLA cannot accept any liability whatsoever for any inaccuracy contained within it, nor for any damage or loss, direct or indirect, which may be suffered as a result of any reliance placed upon the information provided, whether arising in contract, tort or in any other way. Advice should always be obtained from your own professional advisers before committing to a specific action. Regulation & Compliance n/a registered on or after £250 £260 1st March 2001 Heavy Goods Vehicles HGV VED is payable in bands depending on the weight and axle structure that the vehicle is going to be operated with, for more information click here. Operators are able to move about within the band without having to re-license the vehicle and without submitting their V5 for amendment. A V11 is issued to re-tax the vehicle when there is only one possible tax band rate applicable. A V85/1 is issued where the keeper has a choice of more than one tax band, and therefore DVLA needs to verify the vehicle details before establishing the correct band. A V11 means the vehicle can be re-licensed at a post office or online but if a V85/1 is received you will need to post the details to the DVLA at the address below: DVLA Swansea SA99 1DZ If you want to change the plated weight you are operating at you should apply to the Vehicle Inspectorate for the issue of new plating documents. You will need to send completed applications (form VTG10 or 10a) together with the appropriate fee to: Change of Weights The Vehicle Inspectorate Welcombe House The Strand Swansea SA1 2DH You will need to send your old plating certificate with your application. For further information on plating changes visit the Vehicle Inspectorate website at www.via.gov.uk or contact Vehicle Inspectorate Enquiries: 0870 6060 440 If you want to change your tax class at the time of re-licensing you will need to post the detail to the DVLA and re-license in an HGV class under the appropriate band, by completing a V85 HGV Licence application form and submitting your vehicle registration document V5 for amendment. The address is: DVLA Swansea SA99 1DZ The purpose of this fact sheet is to provide general guidance and information only. Although every effort is made to ensure that the content is accurate, the BVRLA cannot accept any liability whatsoever for any inaccuracy contained within it, nor for any damage or loss, direct or indirect, which may be suffered as a result of any reliance placed upon the information provided, whether arising in contract, tort or in any other way. Advice should always be obtained from your own professional advisers before committing to a specific action. Regulation & Compliance Enforcement The DVLA is able to track through its systems and issue fines for vehicles which have not been re- licensed or SORN’d. An £80 fine will be issued and sent to the registered keeper. Further Information For further information on VED contact: DVLA Customer Enquiries (Vehicles) Telephone - 0870 607 6688 The Government’s website The purpose of this fact sheet is to provide general guidance and information only. Although every effort is made to ensure that the content is accurate, the BVRLA cannot accept any liability whatsoever for any inaccuracy contained within it, nor for any damage or loss, direct or indirect, which may be suffered as a result of any reliance placed upon the information provided, whether arising in contract, tort or in any other way. Advice should always be obtained from your own professional advisers before committing to a specific action. .