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VED tax to change in April

From 1st April, Vehicle Excise Duty (VED) will be calculated in a new way, based on vehicle emissions.

Changes to VED

Vehicle Excise Duty is changing from 1st April 2017, and it will include all cars registered on or after that date. The main factor in the new calculations will be the CO2 emissions that the vehicle emits.

Cars with zero emissions will pay no tax – however, this excludes cars over £40,000. There will also be a first-year rate, followed by a standard rate for each subsequent year.

How will it affect you as a rental customer?

All cars in our rental fleet are modern and we have a vehicle replacement policy of 6–12 months.

This means that the new tax increase will add an additional cost to us in the region of £1 million year-to-year. This then leads into the introduction of the Road Fund License Levy, which will only affect vehicles registered after the 1st April 2017.

Although this increase is unavoidable, we consider our customers in everything that we do, which is why we’re introducing this charge in stages – starting at £1.75 per day.

In January 2018, this will then be increased to £1.95.

For more information, please check our PDF version of this article, including a handy table with all tax bands and prices.

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