If you’re thinking about buying a new cab, now’s the time as changes to Vehicle Excise Duty (VED) will make many cars, including low-emission vehicles, more expensive to own come April 1st.
What’s Changing and Why?
At the moment – and up until March 31st – vehicles emitting less than 100g/km of carbon dioxide are free to tax as they fall in VED band A. In fact, under existing regulation, a car has to reach Band D (121-130g/km) before any significant annual road tax is imposed. However, combine the drastic improvements in emissions figures achieved by manufacturers in recent years with increased public awareness and what do you get? A huge hole in the Treasury’s income, that’s what.
As such, from April 1st, drivers can expect to pay considerably more as the chancellor has dubbed current fees as ‘unsustainable’. The new regulation will see the first-year rate (FYR) double for many drivers. Then, from the second year onwards, CO2 will no longer factor in what you pay and a standard £140 flat rate will apply.
Added Expense
As you can see above, the second-year flat rate will prove to be a money saver for some but there’s one caveat to be aware of. If you buy a new cab costing over £40,000 you’ll have an additional annual supplement of £310 to contend with for the first five years of ownership. And that’s over and above the standard £140!
So, what does that mean in practice? Well, let’s say you bought a new TX4 by way of example. Under the current system, the cost of road tax over five years would total £1,830, whilst under the new system you’ll fork out £3,000. On our very own Mercedes M8 drivers will pay an extra £1,375 over a five-year term.
Can I Avoid the Tax Increase?
The only way to avoid paying VED beyond April 1st is to buy a zero-emissions, all-electric model. Although, even then, you won’t necessarily get off scot-free as the yearly £350 supplement will still apply if the car costs more than £40,000. So, in a word, the short answer for most cab drivers is no. Well unless you buy now and have your vehicle registered by March 31st, of course.
Dodge the Tax Man with a New Cab
It really is as simple as buying and registering your new car before the 1st of April deadline. The new rates won’t be applied to any car registered before this date for the whole duration of ownership. So, if you’re looking for a new cab, don’t delay – the money is better off in your pocket than the taxman’s.
Handily, we have many models in stock which means you can beat the road tax increase by acting now. Take our current range of pre-registered Toyota taxis, which includes Auris Touring and Touring Hybrid, Avensis and Avensis Tourer. Buy any one of these and you’ll save yourself a packet – not only on tax but on list price too. And we’ve many more models besides. Call now for more info or browse the site to pick your next taxi partner today.