Vehicle Excise Duty
Vehicle Excise Duty (VED)
Vehicle Excise Duty is the tax payable for using the roads infrastructure and is an annual charge payable by the user to the government, you may know it by other names such as VED or Road Fund Licence (RFL).
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.
| CO2 emissions | First Year Rate Cars Registered Before 31/03/2025 | First Year Rate Cars Registered On or After 01/04/2025 | Standard Rate Tax Year 2025/26 Cars With List Price Up to £40,000 (**) | Standard Rate Tax Year 2025/26 Cars With List Price Over £40,000 (*) (**) |
|---|---|---|---|---|
| 0g/km | £0 | £10 | £195 | £620 |
| 1 - 50g/km | £10 | £110 | ||
| 51 - 75g/km | £30 | £130 | ||
| 76 - 90g/km | £135 | £270 | ||
| 91 - 100g/km | £175 | £350 | ||
| 101 - 110g/km | £195 | £390 | ||
| 111 - 130g/km | £220 | £440 | ||
| 131 - 150g/km | £270 | £540 | ||
| 151 - 170g/km | £680 | £1,360 | ||
| 171 - 190g/km | £1,095 | £2,190 | ||
| 191 - 225g/km | £1,650 | £3,300 | ||
| 226 - 255g/km | £2,340 | £4,680 | ||
| Over 255g/km | £2,745 | £5,490 |
*Cars with a list price(the published price before any discounts) above £40,000 will attract a £425 supplement on their standard rate for the first 5 years in which a standard rate is paid. This applies to Electric Vehicles (EV) for the first time from April 2025.
**Plug in Hybrid cars receive a £10 discount on the standard rate.
Cars registered between 1 March 2001 and 31 March 2017
VED Band | CO₂ emissions | Standard rate (2025/2026) | Standard rate (2025/2026) |
|---|---|---|---|
A | Up to 100g/km | £0 | £0 |
B | 101-110g/km | £20 | £20 |
C | 111-120g/km | £35 | £35 |
D | 121-130g/km | £160 | £160 |
E | 131-140g/km | £190 | £190 |
F | 141-150g/km | £210 | £210 |
G | 151-165g/km | £255 | £255 |
H | 166-175g/km | £305 | £305 |
I | 176-185g/km | £335 | £335 |
J | 186-200g/km | £385 | £385 |
K | 201-225g/km | £415 | £415 |
L | 226-255g/km | £710 | £710 |
M | Over 255g/km | £735 | £735 |
LetsTalkFleet can provide independent impartial advice on Vehicle Excise Duty (VED) for your business so please get in touch with any specific enquiries you have, we are available on 0330 056 3335 or via email contact@letstalkfleet.co.uk .
The information provided is based on existing and proposed legislation as at November 2024 (30th October 2024 UK Government Autumn Statement). 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.
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 |