Vehicle Excise Duty

Vehicle Excise Duty (VED)

Cars Vans

Vehicle Excise Duty is the tax payable for using the roads infrastructure and is an annual charge payable by the user to the government.

Questions you may ask:

  • What are the current VED rates?
  • Does the year of registration affect the amount of VED I need to pay?
  • Do alternative fuels impact VED rates?

How does it work?

Each year the rates of tax are reviewed and potentially changed dependent on Government policy. The tax must be paid by you the operator of the vehicles or dependent on the funding product by the funding company if they have the V5 registration document, as it is their legal duty to ensure the tax is paid. If you have any further questions then reach out and letstalk.

In the Auturmn 2017 Budget the Chancellor announced an increase for the First Year VED rate for new Diesel cars registered after 1st April 2018. For Diesel cars that do not conform to the new RDE Step 2 standard, they will incur a First Year VED rate which is one band higher than its equivalent Petrol car.

 

Registered on or after 1 April 2017          2019/20  VED Charges (2019 rates apply from 1 April 2019)

 

First Year Rate

Cars Registered 1st April 2019 onwards

First Year Rate

Cars Registered 1st April 2019 onwards

Post First Year Rate

 

CO2 emissions

All Cars ( Diesel cars meeting the RDE Step 2 Standard)

Diesel cars that do not meet the RDE Step 2 Standard

List Price £40,000 or Less

List Price More than £40,000 *

Alternative fuel Cars - Discount **

Standard Rate

Additional Rate

Total Rate

0g/km

£0

 

£0

£320

£320 

£10

1 - 50g/km

£10

£25

£145

£320

£465

£10

51 - 75g/km

£25

£110

£145

£320

£465

£10

76 - 90g/km

£110

£130

£145

£320

£465

£10

91 - 100g/km

£130

£150

£145

£320

£465

£10

101 - 110g/km

£150

£170

£145

£320

£465

£10

111 - 130g/km

£170

£210

£145

£320

£465

£10

131 - 150g/km

£210

£530

£145

£320

£465

£10

151 - 170g/km

£530

£855

£145

£320

£465

£10

171 - 190g/km

£855

£1,280

£145

£320

£465

£10

191 - 225g/km

£1,280

£1,815

£145

£320

£465

£10

226 - 255g/km

£1,815

£2,135

£145

£320

£465

£10

Over 255g/km

£2,135

 

£145

£320

£465

£10

*Cars with a list price(the published price before any discounts) above £40,000 will attract a £320 supplement on their standard rate for the first 5 years in which a standard rate is paid. 

**Alternative fuel discount: £10 for all cars (first year and standard rates). Alternative fuel vehicles include hybrids, bi-ethanol and LPG.

 

Cars registered between 1 March 2001 and 31 March 2017

VED Band

CO₂ emissions

Standard rate (2018/19)

A

Up to 100g/km

£0

B

101-110g/km

£20

C

111-120g/km

£30

D

121-130g/km

£125

E

131-140g/km

£145

F

141-150g/km

£160

G

151-165g/km

£200

H

166-175g/km

£235

I

176-185g/km

£260

J

186-200g/km

£300

201-225g/km

£325

L

226-255g/km

£555

M

Over 255g/km

£570

Vans

For a van , Vehicle Excise Duty is charged at a flat rate. Charges vary depending on the category of van.

Van Category

2018/19

2019/20

Light Goods Vehicle (TC39) - Registered on or after 1 March 2001 and not exceeding 3,500 kg.

£250

£260

Euro 4 - Light Goods Vehicle (TC36) - Registered between 1 March 2003 and 31 December 2006 and not exceeding 3,500 kg.

£140

£140

Euro 5 - Light Goods Vehicle (TC36) - Registered between 1 January 2009 and 31 December 2010 and not exceeding 3,500 kg.

£140

£140

The information provided is based on existing and proposed legislation as at November 2017 (2017 Autumn Budget). Whilst every effort has been made to ensure that information given is accurate and not misleading, this information is intended to provide a quick reference to the current tax regulations relating to company vehicles and how they impact employers and employees. The content has been provided for informational purposes only and should not be relied on as a substitute for professional advice. No responsibility can be accepted by LetsTalkFleet Ltd for any loss or liability occasioned by any person acting on or refraining from action as a result of viewing this information.