The DVLA is to hold a webinar for motor retailers on the changes to vehicle tax.
It will be held on February 22 (sign-up details below).
Helen Jones, a vehicle service designer with the DVLA, said of the changes to Vehicle Excise Duty: “In the 2015 summer budget, the chancellor announced changes to the way in which vehicle tax is calculated for cars and some motor homes registered for the first time on or after 1 April 2017.
“Since then, we have been working closely with groups from the motor industry to help prepare for these changes.
“We have formed an industry steering group and the support of bodies such as the SMMT, RMIF, ACFO and BVRLA has been invaluable.
“Knowing that dealers play a vital role in helping to pass on the message to customers, we have sent out detailed information briefs, specifically for them, and have given presentations to a number of dealer groups.
“We have also set up ‘Basecamp’ – an online forum, and a dedicated email address where manufacturers and dealers can get answers to their questions.”
The changes won’t affect any vehicles that are registered before 1 April.
The key points to understand:
- The ‘first licence rate’ remains, and continues to be based on the vehicle’s CO2 emissions. However, some of the values are changing - the new rates are available on gov.uk
- The second time the vehicle is taxed, there will one of three standard rates to pay. These depend on the vehicle’s fuel type. For normal petrol or diesel vehicles, the rate is £140 per year and for ‘alternative fuel’ vehicles (such as hybrids and bioethanol) it’s £130 per year. Vehicles with zero CO2 emissions – such as fully electric – will have a £0 (zero) rate.
- If the car has a manufacturer’s list price of over £40,000, there is new additional rate of £310 per year – on top of the standard rate. The additional rate and standard rate are paid for five years from the second time the vehicle is taxed. After the five years, the vehicle will be only taxed at the standard rate for that type of vehicle.
DVLA webinar for motor retailers