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VED Rate Update: Changes Coming 1st April 2024

What is VED?

Vehicle Excise Duty (VED), also known as road tax, is a levy on vehicles used or kept on public roads in the UK. The amount you pay depends on several factors, including:

  • Vehicle type: Cars, vans, motorcycles, etc.
  • Emissions: Generally, higher emissions lead to higher VED.
  • Date of first registration: Newer vehicles often have higher rates.
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VED Rate Changes

As announced in the recent Spring Budget, VED rates will increase in line with inflation (Retail Price Index or RPI) starting 1st April 2024.

As of 2024, electric cars don’t currently pay VED, however, this will change from 1st April 2025 when electric vehicles registered between 1st April 2017 to 31st March 2025 will be eligible for the standard rate of tax.

Impact on Customers

Applicable customers have been communicated with and given test data to ensure a smooth transition to the new rates.

Stay Informed

We are committed to making this process as seamless as possible. For more information on VED or the upcoming rate changes, please visit the Gov.uk Webpage on VED or contact us at [email protected]

CVD Website

We’ve included a Benefit in Kind tax calculator for company car and van drivers to help you choose the most tax efficient vehicles. You can also amend the calculation for private mileage fuel, whether you make a capital contribution and where you make a monthly contribution for private use. So you are able to determine the optimum way to run your personal or company vehicles.

There is also an Employers National Insurance calculator for business Whole Life Cost calculations. This figure is amended whenever the Benefit in Kind calculation is changed to take account of private mileage fuel use, a capital contribution being made or employee monthly contributions.

Cars and vans depreciate at differing rates. This is the biggest cost to owning and operating a vehicle. The Whole Life Cost tool allows you to compare these rates for the vehicles you are thinking about buying. It also allows you to compare the cost of existing vehicles with those you are planning to buy. And, of course, you can compare buying a used car with buying a new one.

Your annual road tax is based on the CO2 for your vehicle. This tool builds in the annual road tax payable based on its CO2. So you can compare the most environmentally friendly vehicles and save money on your road tax and first registration fee at the same time. You can also measure your carbon footprint by using our Carbon Footprint calculator. The fuel calculator takes into account the MPG on your selected vehicles and calculates your total fuel cost over the selected period and mileage. These MPG figures can be amended to take your own figures into the calculation, and it is also possible to build in your own mix between electric and petrol use on a Plug-in Hybrid.

Compare Service, Maintenance and Repair budgets to establish which vehicles are the most cost effective to run, and compare the forecast cost on your existing vehicle with the vehicle you are thinking about buying. Our experts build in component wear rates on a model by model basis, and the budgets will also take into account differing prices for components between the manufacturers and their model ranges. The correct servicing intervals and costs for those services are also built into the budget for the period and mileage which you choose.

This tool allows you to compare up to 4 vehicles side by side with all their operating cost and running costs. It will therefore help you to make objective decisions about your next car or van, and will assist in business fleet selection policy. Costs included in the tool are Depreciation, Interest, Service and Repair Costs, Road Tax, Fuel Costs, Insurance Groups, Employers National Insurance (for businesses) and there are tools to calculate Benefit in Kind tax (for company car drivers) and to calculate your Carbon Footprint.

The data on this website is totally independent and has been forecast by independent automotive experts. It is not influenced in any way by businesses with a vested interest in selling vehicles, finance or vehicle services.