Beat The Tax Increase: Road Tax Set To Rise On 1st April 2020


There is a bump in the road ahead that you will want to avoid. Vehicle Excise Duty (VED) or road tax as it is mostly known is changing for new vehicles registered on or after 1st April 2020. So, if you have been pondering about upgrading your car or commercial vehicle, March is your last chance to save up to £960 in tax.

Why is VED changing?

The Worldwide Harmonised Light Vehicles Test Procedure (WLTP) focuses on vehicle fuel consumption, range and CO2 emissions. These tests determine how much harm different vehicles are doing to the planet.

You might have heard of the previous testing procedure which was known as NEDC. This was originally developed in the 1990’s but has become outdated. WLTP has been introduced to consider real driving conditions which in turn provides more accurate fuel economy and vehicle emissions.

How will it affect your Road Tax?

In simple terms, these new tests are more stringent which means you could see an increase in road tax for your new car or commercial vehicle. The changes take effect from 1st April 2020 for Vehicle Excise Duty (VED) and 6th April 2020 for Benefit in Kind on Company Car Tax.

How much will by Road Tax increase?

The table below illustrates which VED banding your new vehicle will fall in and how much you could be paying in tax.



How can I beat the tax rise and save money?

If you’re considering buying a new car or commercial vehicle in the near future, then we encourage you to move now. Any vehicle registered on or after 1st April 2020 will be subject to these changes so make sure you don’t get caught.

Visit www.premiercommercialvehicles.co.uk where we supply all makes and all models of car and commercial vehicles for both personal and business users. If you would like to learn more about these changes, speak to a member of our team by calling 01656 808 444.

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