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.
First Year Rate Cars Registered Tax Year 2019/20 | Standard Rate Cars Registered Tax Year 2019/20 | First Year Rate Cars Registered Tax Year 2020/21 | Standard Rate Cars Registered Tax Year 2020/21 | Post First Year Rate - In addition to the Standard Rate | |||
|---|---|---|---|---|---|---|---|
CO2 emissions | All Cars * (Diesel cars meeting the RDE Step 2 Standard) |
| All Cars * (Diesel cars meeting the RDE Step 2 Standard) |
| List Price More than £40,000 ** | Alternative fuel Cars - Discount *** | |
2019/20 | 2020/21 | ||||||
| 0g/km | £0 | £0 | £0 | £0 | £0 | £0 | N/A |
| 1 - 50g/km | £10 | £145 | £10 | £150 | £320 | £325 | £10 |
| 51 - 75g/km | £25 | £145 | £25 | £150 | £320 | £325 | £10 |
| 76 - 90g/km | £110 | £145 | £110 | £150 | £320 | £325 | £10 |
| 91 - 100g/km | £130 | £145 | £135 | £150 | £320 | £325 | £10 |
| 101 - 110g/km | £150 | £145 | £155 | £150 | £320 | £325 | £10 |
| 111 - 130g/km | £170 | £145 | £175 | £150 | £320 | £325 | £10 |
| 131 - 150g/km | £210 | £145 | £215 | £150 | £320 | £325 | £10 |
| 151 - 170g/km | £530 | £145 | £540 | £150 | £320 | £325 | £10 |
| 171 - 190g/km | £855 | £145 | £870 | £150 | £320 | £325 | £10 |
| 191 - 225g/km | £1,280 | £145 | £1,305 | £150 | £320 | £325 | £10 |
| 226 - 255g/km | £1,815 | £145 | £1,850 | £150 | £320 | £325 | £10 |
| Over 255g/km | £2,135 | £145 | £2,175 | £150 | £320 | £325 | £10 |
*New diesel vehicles registered on or after 1 April 2018 that do not meet the real driving emission step 2 (RDE2) standard will be charged a supplement on their First Year Rate to the effect of moving up by one VED Co2 Emissions band.
**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 (2019/20) | Standard rate (2020/2021) |
|---|---|---|---|
A | Up to 100g/km | £0 | £0 |
B | 101-110g/km | £20 | £20 |
C | 111-120g/km | £30 | £30 |
D | 121-130g/km | £125 | £130 |
E | 131-140g/km | £145 | £150 |
F | 141-150g/km | £160 | £165 |
G | 151-165g/km | £200 | £205 |
H | 166-175g/km | £235 | £240 |
I | 176-185g/km | £260 | £265 |
J | 186-200g/km | £300 | £305 |
K | 201-225g/km | £325 | £330 |
L | 226-255g/km | £555 | £565 |
M | Over 255g/km | £570 | £580 |
The information provided is based on existing and proposed legislation as at March 2020 (11th March 2020 UK 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.
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 |