Don’t forget the new VED regime becomes effective 1 April 2017
THEY CHANGED THE RULES AGAIN!
You know how it is – just when you think you have a handle on things – and as a business owner there are lots of things to get a handle on!
Where am I going with this?
Well its TAX again!
You will need to know about this – particularly if you have cars due for change early this year.
The government have changed the rules relating to the VED ( that’s road tax to you & me ) , and it is important to be aware that even the nice environmentally friendly little car you were thinking of getting because it has ZERO Road Fund Licence – could end up costing an extra £420 over 3 years under the new regime. That doesn’t sound like a lot – unless you are running a fleet of cars and then it can really impact your bottom line!
It is all because of changes which will see some models in best selling ranges like the Ford Fiesta, Vauxhall Astra and Nissan Qashqai lose their current exemption from Road Tax.
This is the first time in a generation that VED Bands have had a complete overhaul and the rules are quite simple.
- They effect cars registered on or after 1 April 2017.
- Electric cars will continue to qualify for zero VED for the foreseeable future.
There are 3 new bands for VED.
- Zero emissions – pay nothing.
- Standard cars pay £140 per year after the first year. First year rates will vary according to the C02 of the car.
- Anything costing over £40,000 to buy will cost £140 per year PLUS an additional £310 per year for the first 5 years.
Here are a few examples:
|VED today for 3 years||VED after 1 April for 3 years|
|Peugeot 208 1.2 Pure Tec||£40||£420|
|Mercedes E 350e SE||£49||£910|
|Mitsubishi Outlander PHEV||Zero||£290|
|VW Passat 1.6TDi S||Zero||£420|
|VW UP 1.0 75ps||£40||£420|
|Tesla Model S||Zero||£620|
|Nissan Qashqai N Connecta DCi||Zero||£400|
THE ESSENTIALS YOU NEED TO KNOW.
- The change is taking place on cars registered after 1st April 2017.
- In the majority of cases this is going to cost you more.
WHAT TO DO
- Be aware.
- Check what your chosen car is going to cost in VED before making a commitment.
- If you are planning on making a change in the near future do it before 1 April deadline.
The majority of cars on a lease include the Road Fund Licence for the period of the lease – therefore we can expect to see monthly payments rise to reflect this.
Lesley and her team are here to help so if you are unsure about any of this give us a call or email Lesley.firstname.lastname@example.org.
The full details can be found here.