2017 VED road tax changes - what you need to know

As the calendar moves forward into mid-spring, the new rules governing Vehicle Excise Duty have now rolled into action. The newest generation of road tax regulations present an entirely remastered system, posing new vehicle tax bands that may kindle a variety of implications to potential new car buyers. Here's everything you need to know:

The new road tax regulations
The new road tax regulations will significantly impact the vehicle purchasing process, with drivers facing substantial increases in vehicle tax rates.

Zero emission vehicles will benefit the most from the new tax regulations, with no first year tax charge, and no subsequent annual tax charges either; this means that we may see many more electric, zero emission cars on the roads as eco-friendly campaigns are launched to encourage their use.

For everyone else, the initial fee for the first years road tax has been more or less doubled. Subsequent annual charges are no longer calculated off an emissions based scale, but instead take the form of a £140 flat rate.

For cars worth more than £40,000 (including zero emission vehicles exceeding this value) a supplementary charge of £310 will accompany their annual payments from years, 2-5 of ownership, after this period they will revert back to the standard £140 flat rate.

Hybrid and bio-fuelled vehicles will pay £10 less than other road users, with £10 off the first year fee, with a flat rate of £130 per year thereafter.

Will the new changes affect your current vehicle?
If your vehicle was registered before April 2017 then your vehicle will continue to be under the jurisdiction of the former VED road tax rates and regulations and you'll continue to take advantage of the more auspicious tax bands if you have an environmentally friendly vehicle.

If your car has been registered this month, or perhaps if you're planning on purchasing a new vehicle this year then the new VED road tax rates and regulations will apply to your new car. You may wish to consider taking a look at zero emission vehicles (under 40k) if you want to be free from increased tax rates.

Ensuring you don't miss any payments
Ever since the termination of the tax discs in 2014 drivers have been able to renew their vehicle's road fund licence via direct debit, on a monthly or annual basis. If you're not currently paying by direct debit, you may wish to take advantage of this tool to ensure that you're road tax is always up-to-date and renewed on time.

Otherwise, you'll still receive reminders from the DVLA to renew your vehicle's road tax, and you can still make use of the usual payment facilities such as using the DVLA's online service, via the phone, at the post office or through an official DVLA intermediary such as Admin Business Solutions. Contacting Admin Business Solutions to renew your road fund licences may be your best option if you need to bulk tax a number of vehicles as they are equipped with their own specialist software and processes, making light work of this administration.

What happens when you decide to sell your vehicle
The new road tax regulations no longer enable the remaining road tax associated with a vehicle to be transferred to its new owner. The new rules enable the seller of the vehicle to reclaim a refund on the remaining road tax, however this means that the new owner must re-tax the vehicle before road use.

The DVLA will automatically distribute tax refunds upon notification of a vehicle being sold, declared redundant via a Statutory Off Road Notification, or scrapped. It is the vehicle seller's responsibility to notify the DVLA of these changes, with drivers that fail to do so facing substantial fines and the potential to be liable for fines incurred by the buyer.

Receiving Notifications
Since the abolishment of the paper tax disc in 2014 you may have found yourself struggling to keep up-to-date with your vehicle's tax renewals, If this is the case then you can contact a specialist administration service such as Admin Business Solutions to support your renewals.

Not only can ABS renew your Road Fund Licence via their automated system, but they can also send you notifications for vehicle tax renewals via letter, email or SMS. Ensuring that you never miss a payment and avoid unnecessary costs if you wish to renew your vehicle tax independently. An outsourced solution is certainly the recommended option for those with multiple vehicles or substantial fleets to manage.

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