Vehicle Excise Duty (Road Tax)

Question 1

Vehicle excise duty

Answer 1

Can be purchased for 6 or 12 months
If purchased for 12 months you can pay monthly via direct debit
There are 7 bands A-G
A pays the lowest and G pays the highest
A vehicle up to and including 7.5 tonnes will be band A

Question 2

Categorising a tax band

Answer 2

Four factors

Vehicle Gross weight - the heavier the vehicle the more it will cost. HGV operators can apply to down plate the vehicle to carry less weight and therefore reduce the VED.

Drawbar Trailers - A trailer weight is added for vehicles over 12 tonne when the laden trailer is over 4 tonne

Number of axels - The more axels the lower the VED band. More axles causes less damage to roads as weight is better distributed.

Reduced Pollutions certificates (RPC) - Vechicles with a valid RPC are eligable for a VED reduction

Question 3

VED - Trailers

Answer 3

VED banding covers tractor units and trailers and semi trailers.

A rigid and drawbar is a little different. The Rigid will be assessed as normal but if the trailer exceeds 4 tonnes and is pulled by a rigid with a gross weight of 12 tonnes, there will be additional VED to pay to authorise use of the trailer.

Question 4

VEFD - First Licenses

Answer 4

Would be sorted by the dealer or distributor of the vehicle,

Cab be applied for directly to the DVLA through the online system AFRL (automated first registration licensing) and paid for online.

You can also apply by post direct to DVLA Swansea
Submit the V55/4 Document and application

If applying by post the following documents would also need to be sent.

Fee to cover both initial registration charge and the VED required.
‘Proof of identity that confirms name and address of the applicant.
A type approval certificate of conformity, (COC) - only for vehicles subject to type approval.

Both methods will check for valid insurance electrically.
Completion of the process will see a V5C registration certificate being issued to the registered keeper of the vehicle.

Question 5

VED - Renewal

Answer 5

DVLA at Swansea will send a reminder (V85/1) for vehicles over 3.5 tonne

Renewals can be completed online at the GOV website
By telephone
By post to Swansea
or at a post office (will need the V85/1, the renewal fee, DVSA plating test certificate and a valid RPC if claiming reduced VED, MOT and insurance are checked electronically)
You can pay via credit or debit card annually or monthly.

Question 6

VED - Special Vehicles

Answer 6

Separate VED category (Class 14) for vehicles over 3.5 tonne

Covers vehicles such as
Digging machines
Forklift
Road Rollers
Mobile cranes
Showman's HGV

Current charge is £16

Question 7

VED - Offences and penalties

Answer 7

If a vehicle is kept unlicensed there is a maximum fine of £1000 or five times the duty that should be paid on the vehicle, whichever is greater.

Courts can also order the operator to make back payments for the unlicensed vehicle.