Search for the best van and pickup leasing deals.

2019 Road Tax (VED) Explained - Vanarama

Published on Tuesday 23 July 2019 in Van News

2019 Road Tax (VED) Explained - Vanarama

How To Pay The Road Tax (VED) - Everything You Need To Know

Your Ultimate Guide To Road Tax / VED

Let's face it, no one likes paying tax and no matter which tax you're paying, it always seems to be a little more complicated than it needs to be. We want to make it all a bit easier by breaking out exactly what you have to pay for road tax in 2019 and why.

You'll find everything you need to know here, where we'll try to take the drama out of road tax! If you really want to avoid all the drama - leasing is the choice for you. All our leases come with road tax included as standard in your monthly rentals, so it's not something you'll need to worry about. But if you do want to know more (or you just like reading about tax) here's everything we know...

 

Do I Have To Pay Road Tax?

Technically road tax doesn't exist, so if you're asking the road tax cost - the answer is it hasn't existed since the 1930s! Who knew? Unfortunately, that doesn't mean you don't have to pay this DVLA tax. It just means what drivers pay these days is called Vehicle Excise Duty - commonly referred to as VED.

 

What Is Vehicle Excise Duty (VED)?

Vehicle Excise Duty (or VED) is the DVLA tax you pay to keep your vehicle on the road legally. So in a word, it's vital! It's calculated using a range of factors based, mainly, on how old your vehicle is.

 

How Much Will It Cost To Tax My Van Or Car?

Basically, the more inefficient your vehicle is, the more VED you'll pay. This is one of the reasons it's so much more efficient to lease - as newer vehicles come out, their efficiency increases. Win-win!

The calculations of this DVLA road tax, or VED, will change based on whether you have a van or a car and when you registered your vehicle. To find out exactly what you'll need to pay, see below where we've broken out all the components and explained the rules in (great) detail.

 

Everything You Need To Know About Taxing Your Van

The rules for taxing your van are a little different to the rules for taxing your car. They are also, thankfully, a lot simpler. So, when it comes to road tax for vans (VED), what you pay is based mainly on the age of your van, rather than C02 emissions - as it is with car tax (read more on car road tax below).

 

What Is Considered 'A Van' By HMRC?

Before deciding which tax to pay, you'll need to decide whether your vehicle is defined as a van or a car? You might think you know, but HMRC uses a set criterion for assessing what is classed as a van... so you ask yourself the following questions:

  • Is your vehicle constructed for the conveyance of goods or burden?

(In human speak, that means is it predominantly used for carrying goods rather than carrying people?)

  • Is it at a gross vehicle weight - fully laden - not exceeding 3,500kg?

If the answer is yes, then according to HMRC, you've got yourself a van! Congrats. So, let's have a look at the van road tax you'll need to pay.

 

Van / Light Commercial Vehicle Tax Costs For 2019/20

Maybe the reason van tax is far simpler than car tax is that it hasn't changed all that much in quite a while. It's also based on the vehicle's age rather than its C02 emissions and whether you're paying in one go on with a monthly direct debit. There are some slight variations for older vans based on emissions standards. If you're confused, don't worry, just use our table below to find out how much you should pay. You'll just need to know when you registered your van.

 

Van Road Tax Calculator for Current Van / LCV Tax Costs

Date You Registered Your Van

Current Cost (Single Payment - Annual)

Current Cost (Monthly DD For 12 Months)

Current Cost  (Single Payment - For 6 Months)

Current Cost (Monthly DD For
6 Months)

All Vans Registered after 1/3/01

£260

£273

£143

£136.50

Euro4 vans registered
from 1/3/03 to 31/12/06

£140

£147

£77

£73.50

Euro5 vans registered
from 1/1/09 to 31/12/10

£140

£147

£77

£73.50

Electric Vans

£0

£0

£0

£0

 

Van Road Tax Changes In 2019

There has only been a slight change to van tax since the van road tax prices of 2018. Last year, the standard annual price for most vans was £250. It increased by £10 in the 2019 Budget and so now you'll pay £260 annually.

 

Do I Have To Pay Tax On A Company Van?

If you have a company van, you'll have to pay tax on the van, but only if you use it for private use. This tax is called the Van Benefit Charge.

It's important to decide whether you use your van for private use which dictates whether you pay the tax. Private use is defined as use for anything other than your work commute (although a quick stop off to get a coffee or a newspaper is still counted as non-private use).

 

The Van Benefit Charge 2019/20

The Van Benefit Charge is an annual benefit in kind tax. For vans, this cost is fixed (rather than based on C02 emissions). The van tax benefit in kind is currently £3,350 - meaning you are taxed on this amount.

  • If you pay 20% tax, you'll pay £670 a year.
  • But if you pay the higher tax rate of 40%, you'll pay £1,340 a year.

 

Company Van Tax For Electric Vans

If your company van is electric and you use it for private use, you'll still have to pay the Van Benefit Charge. But good news, this is charged at a reduced rate.

  • So for the 20% taxpayer, you'll pay £269 per year.
  • For the 40% taxpayer, you'll pay £536 per year.

 

Will I Have To Pay Company Van Tax On Pool Vans?

As pool cars and vans are not seen as a 'benefit', these are not taxed, so you won't have to pay the Van Benefit Charge on these. But remember, your employer will need to prove the cars are pool cars and shared by employees for business reasons only.

 

What Are The Company Tax Rules On Pickup Trucks?

Simply put, the same rules apply for pickup trucks as they do for vans! Simple.

 

Paying Tax On Free Fuel

Again, you'll only need to pay tax on fuel if you use your van for private use. If you do this, your yearly fuel benefit is taxed as a benefit in kind. The amount is £633.

  • The tax on this if you're a 20% taxpayer is £127.
  • The tax is £253 if you're a 40% taxpayer.

 

Do I Need To Pay Company Van Tax If I'm Self-Employed?

In a word, no. If you're self-employed you won't need to pay the Company Van Tax. Woohoo!

 

Everything You Need To Know About Taxing Your Car

To find out how much car tax you'll need to pay, first you need to know when it was registered - it really all depends on this. There were different rules introduced in 2001 and 2017, so it's all about whether you fall before 2001, between 2001 and 2017 or after 2017.

 

Car Tax Changes In 2017 And 2018

It's important to note that VED rules for cars has changed quite a bit over the years and as emissions standards change and new budgets come out, costs have increased. Below are all the most up to date costs for 2019/20.

 

How Much Will I have to Pay for Car Tax 2019?

If you know when your car was registered, you can skip straight to the relevant section below:

 

Road Tax (VED) Costs For Cars Registered Before 1/3/01

If you registered your car before 1 March 2001, the rules are much simpler and it's only really about the size of your engine.

  • For cars more than 1,549cc you'll pay £245 per year.
  • For cars less than 1,549cc you'll pay £150 per year.

 

Road Tax (VED) Costs For Cars Registered Between 1/3/01 And 31/3/17

If you registered your car between 1/3/01 and 31/3/17, the rules changed and the rates you pay will be based on your C02 emissions. You will be given a banding from A to M based on your car's emissions. See below to calculate how much you'll need to pay each year.

C02 Emissions

VED Band

Annual Cost

Up to 100 g/km

A

£0

101 - 110 g/km

B

£20

111 - 120 g/km

C

£30

121 - 130 g/km

D

£125

131 - 140 g/km

E

£145

141 - 150 g/km

F

£160

151 - 165 g/km

G

£200

166 - 175 g/km

H

£235

176 - 185 g/km

I

£260

186 - 200 g/km

J

£300

201 - 225 g/km

K

£325

226 - 255 g/km

L

£555

More than 255 g/km

M

£570

 

Road Tax (VED) Costs For Cars Registered Between From 1/3/17 onwards

In 2017 the rules for car tax changed again. The main difference here is that there is now a difference in the cost for the first year and the cost for the following years. This is called the 'first year rate' and then the 'standard rate'. You can use the table below to calculate how much you'll pay based on your C02 emissions. Please note if you use alternative fuel there's more information on this below.

C02 Emissions

First Year Rate

Standard Rate

0

£0

£0

1-50

£10

£145

51-75

£25

£145

76-90

£110

£145

91-100

£130

£145

101-110

£150

£145

110-130

£170

£145

131-150

£210

£145

151-170

£530

£145

171-190

£855

£145

191-225

£1280

£145

226-255

£1815

£145

More than 256

£2135

£145

 

Different Fuel Type Taxes On Cars

If your car is an alternative fuel vehicle or a diesel car that does not meet the RDE2 emission standards, there are slightly different rates. See the table below for details on what you'll need to pay for these vehicles.

Fully electric cars will not be liable for VED.

C02 Emissions

Other Diesel Cars First Year Rate

Other Petrol or Diesel Cars Standard Rate

Alternative Fuel Cars First Year Rate

Alternative Fuel Cars Standard Rate

0

£0

£145

£0

£135

1-50

£25

£145

£0

£135

51-75

£110

£145

£15

£135

76-90

£130

£145

£100

£135

91-100

£150

£145

£120

£135

101-110

£170

£145

£140

£135

110-130

£210

£145

£160

£135

131-150

£530

£145

£200

£135

151-170

£855

£145

£520

£135

171-190

£1280

£145

£845

£135

191-225

£1815

£145

£1270

£135

226-255

£2135

£145

£1805

£135

More than 256

£2135

£145

£2125

£135

 

Which Vehicles Are Exempt From VED?

If your vehicle is exempt, you still have to tax the vehicle but you can then make a claim for exemption.

You may be eligible for exemption if:

  • You have a disability.
  • You are providing transport for diabled people.
  • You have a vehicle made before January 1979.

If you have a vehicle that's more than 40 years old, well, we'd probably suggest you look a leasing new from us, but you'll also be exempt from road tax.

 

How To Pay Your Road Rax (VED)

Unlike the days of 'going to the DVLA to tax my car' there are now a range of ways to pay your VED. However, you will need different documentation depending on which way you decide to pay this and whether you're paying your tax for the first time or renewing. You can pay your road tax online, over the phone or at the post office.

 

How To Tax Your Car Or Van Online

You can pay your car tax online whether you've got a new vehicle or if you're re-taxing it. If you've just got a new car or van, you'll need the 11-digit reference number from your V5C*.

*A V5C is a paper document that shows you as the registered keeper of a vehicle. This is what is shown to the DVLA to prove who owns a vehicle and if you're using this the V5C will need to be registered in your name.

 

How to Tax A Car Or Van Without A V5C Document

If you haven't got the V5C document yet, you can use the 12-digit reference number from the New Keeper Slip you should have from the seller.

Once you have either of these, you can visit this website to pay your VED online (https://www.gov.uk/vehicle-tax).

 

Pay Your VED By Phone

If you're prefer to speak to a human, you can contact the DVLA direct. Once again, you will need your V5C documentation or your New Keeper Slip (details of these in the section above) when you call.

You can call the DVLA direct on the following number 0300 123 4321 (call charges may apply).

 

Pay Your VED At The Post Office

You can also pay your VED at the Post Office, although it will have to be a Post Office that specifically deals with vehicle tax. To find out which branches deal with this service you can use their branch finder here: https://www.postoffice.co.uk/branch-finder

If you do go to the Post Office to pay this, you'll need your V5C certificate or your New Keeper Slip. You may also need an MOT test certificate.

 

Taxing Motorcycles, Mopeds and Motor Tricycles

Just like your car or van, if you have a motorcycle, scooter or moped, they'll need the VED covered as well. Unlike cars, motorbike tax is based only on engine size so it's a lot simpler. Phew!

 

How Much Will It Cost To Tax My Motorcycle?

Size of Bike's Engine (CC)

One Annual Payment

12 Monthly Instalments (DD)

One 6-Month Payment

6 Monthly Installments (DD)

Less than 150

£19

£19.95

N/A

N/A

151 to 400

£42

£44.10

N/A

N/A

401 to 600

£64

£67.20

£35.20

£33.50

More than 600

£88

£92.40

£48.40

£46.20

 

What Does Sorn Mean?

SORN stands for Statutory Off-Road Notification and you'll need to 'make a SORN' when it will no longer be on the road so it won't need tax or insurance. If it's not being driven on the road and is parked on private land you can make a DVLA SORN. similarly, If you don't have tax or insurance you will also need to make a SORN.

If you don't have tax or insurance because you're not using your vehicle, but you have not applied for a SORN, you could be fined.

 

How To SORN My Car Or SORN My Van?

To register a vehicle as SORN, you need to tell the DVLA that you're taking your vehicle off the road. There are several ways to make a SORN - all detailed below:

 

SORN A Car Online / SORN A Van Online

You can SORN your car or van online here (https://www.gov.uk/make-a-sorn) you'll just need to choose when you want to register the vehicle off-road. If it's immediately, you'll need your V5C logbook and the 11-digit number from this. If you want to do it from the first day of the following month, you'll need to use the 16-digital number from your V11 vehicle tax reminder letter.

 

SORN A Car / Van By Phone

You can SORN your car or van by calling the DVLA direct on 0300 123 4321.

 

SORN A Car / Van By Post

If you would like to SORN your vehicle by post you will need a V890 application form which can be found here https://www.gov.uk/government/publications/v890-statutory-off-road-notification-sorn. This will need to be sent to DVLA, Swansea, SA99 1AR.

 

What Happens To My Vehicle Tax When I Buy Or Sell A Vehicle?

If you're buying or selling a vehicle, your tax is not automatically transferred. Once you let the DVLA know that you've sold, your vehicle tax will be cancelled, and you should be given a refund of any remaining tax. The new owner will then need to tax the vehicle again in their name.

And that's it, your comprehensive (and might I say riveting) guide to road tax. So, no excuse - don't forget to tax your vehicle! Or better yet, lease with us and we'll do it for you.

 

Comments