How Vehicle Tax is being Changed (April 2017)
If you are thinking of ordering a new vehicle in the near future there is a major change due to the way your new car will be taxed. From 1st April 2017 the Government will be changing the way vehicles are taxed and this could have a massive impact on you personally or your business, depending on if you purchase yourself or through the company.
How will you be effected?
From 1st April 2017 the First Year Rate of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle. (please see chart below)
In all subsequent years a flat Standard rate of £140 will apply for all cars with the exception of zero emission vehicle.
For all vehicles with a list price (based on the new list price, not price paid) of £40,000 and over an additional £310 supplement will be added to the Standard Rate for the first 5 years that Standard Rate is Paid – For example a vehicle with a list price of over £40,000 with emissions between 111-130 (CO2) the First Year rate will be £160 plus the £310 supplement. When the vehicle is next taxed (typically when it is one year old or sooner if the vehicle is resold) the Standard Rate will be £140 £310 Supplement (£450). This rate then continues for 5 years. When the car is 6 years old the supplement stops and only the £140 Standard Rate applies.
Emissions (g/CO2/km) First Year Rate Standard Rate*
*Cars over £40,000 will pay £310 supplement for 5 years
In order to avoid these changes we highly recommend that you look at placing your order as soon as possible to guarantee that the vehicle can be registered by 31st March. This way the vehicle will be registered on the current scheme and not affected by the changes in future years of taxing. Many of our customers are already taking advantage of doing this.
Certain models that have longer lead times, you might consider speaking to your sales representative to discuss looking at stock models and/or models we already have on order. We will be happy to work with you to find a model that is as close to the specification you want and be in a position to have the vehicle before the changes are implemented. Obviously you may need to be flexible with the specification.
If you normally finance your vehicles on Contract Hire and have the car from April on wards it is also worth noting that the monthly rentals may increase to take into account the changes in the cost of the Vehicle Excise Duty (VED) and the additional £310 supplement if the vehicle is over £40,000. Again if you take delivery of the vehicle by 31st March the rentals will not be affected.
Please contact us on 01634 687070 so we can discuss your car leasing/contract hire needs and secure your order before the changes are implemented.