Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Vehicle Excise Duty shopping experience:
1. Compare - without doubt the biggest advantage that the Vehicle Excise Duty offers shoppers today is the ability to compare thousands of Vehicle Excise Duty at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Vehicle Excise Duty? Wrong! If the Vehicle Excise Duty is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Vehicle Excise Duty then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Vehicle Excise Duty? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Vehicle Excise Duty and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Vehicle Excise Duty wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Vehicle Excise Duty then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Vehicle Excise Duty site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Vehicle Excise Duty, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Vehicle Excise Duty, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
In the
United Kingdom,
Vehicle Excise Duty (VED) (often known as
road tax, although it is not Hypothecation for spending on roads, and before 1936 as
road fund licence) is an annual tax on the use of
motor vehicles on the
public roads. It is collected and enforced by the Driver and Vehicle Licensing Agency (DVLA).
In the United States, such fees are called
car taxes,
vehicle license fees, or
registration fees and are imposed on a state-by-state basis. Within some states the fees may vary from county to county, as some counties have surcharges per vehicle.
In Spain they are called motor vehicle circulation taxes.
United Kingdom
Any vehicle used or kept on the public road is liable. Vehicle owners paying the tax are issued with a non-transferable Vehicle licence ("tax disc") to be displayed on the vehicle. Since 1998, owners of registered vehicles
not using the public roads have been required to submit an annual Statutory Off-Road Notification (SORN). Failure to submit a SORN is punishable in the same manner as failure to pay duty and display a tax disc when using the vehicle on public roads.
In March 1998,
graduated vehicle excise duty (GRAD VED) was introduced as an incentive to purchase vehicles with low emission levels:
- Automobiles registered before March 1 2001 are charged according to engine capacity. In the 2007 – 2008 tax year this was pound Sterling115 for cars with a capacity under 1550Cubic centimetre and £180 for those of 1550cc and above.
- Cars registered on or after March 1 2001 are charged according to their level of carbon dioxide (CO2) emission. For the tax year 2007 – 2008 this was up to £300, with the least polluting vehicles paying no excise duty at all.
- The highest rates of Vehicle Excise Duty ("Band G") only apply to vehicles manufactured after 23 March 2006 - the maximum VED for vehicles manufactured before that date is £205 for petrol and diesel powered vehicles.
Rates for all other vehicles vary from £15 for
motorcycles with an engine capacity under 150cc, up to a maximum of £1,850 for the largest
heavy goods vehicles (HGVs). (Special rates apply to HGVs not used commercially.) A few special-purpose vehicles such as ambulances are exempt.
In
tax year 2002 – 2003, it is estimated that evasion of the tax equated to a loss to the Exchequer of £206 million. In an attempt to reduce this, from 2004 an automatic £80 penalty (halved if paid within 28 days) is issued by the DVLA computer for failure to pay the tax within one month of the expiry of the previous tax disc. A maximum fine of £1,000 applies for failure to pay the tax, though in practice fines are normally much lower.
The Police have also been granted devolved powers to tow or clamp any vehicles a police officer or PCSO sees, that is unlicensed on a public road.
Also note that vehicles registered before
1 January 1973 are eligible for a free
Vehicle licence under the "
Antique vehicle registration" legislation. This is due to the age of the vehicle and a presumption of limited mileage. Initially this was a rolling exemption applied to any vehicles over 25 years old, however the cutoff date was frozen in 1997. The change to "pre-1973" was unpopular in the classic motoring press, and a number of classic car clubs are campaigning for a change back to the previous system.
Future changes
In the pre-budget report of 27th November 2001 the Government announced that VED for HGVs could be replaced, by a new tax based on distance travelled, the
Lorry Road-User Charge (LRUC).{{cite press release]|url=http://www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr01/press_notices/prebud_pbr01_presshmt1.cfm--> At the same time, the rate of fuel duty would be cut for such vehicles. As at the start of 2007 this scheme is still at a proposal stage and no indicated start date has been given.
The primary aim of the change is that HGVs from the UK and the continent pay exactly the same to use British roads (removing the ability of foreign vehicles to pay no UK tax). However, it is also expected that the tax will be used to influence routes taken (charging lower rates to use
motorways), reduce congestion (by varying the charge with time of day), and encourage low emission vehicles.
In June
2005 the government announced plans to adopt a similar road user charging scheme for other road vehicles, which would work by tracing the movement of all vehicles using a telematics system. The idea raised immediate objections on civil rights and
human rights grounds that it would amount to mass surveillance. An online petition protesting this was started and reached over 1.8 million signatures by the closing date of 20th February 2007.
See also
- British car number plates and Vehicle registration plate
- Congestion charge
- List of United Kingdom-related topics
Notes
External links
- Current UK VED rates
- VED evasion in the UK
In the United Kingdom,
Vehicle Excise Duty (VED) (often known as
road tax, although it is not
Hypothecation for spending on roads, and before
1936 as
road fund licence) is an annual tax on the use of
motor vehicles on the public roads. It is collected and enforced by the Driver and Vehicle Licensing Agency (DVLA).
In the United States, such fees are called
car taxes,
vehicle license fees, or
registration fees and are imposed on a state-by-state basis. Within some states the fees may vary from county to county, as some counties have surcharges per vehicle.
In Spain they are called motor vehicle circulation taxes.
United Kingdom
Any vehicle used or kept on the public road is liable. Vehicle owners paying the tax are issued with a non-transferable Vehicle licence ("tax disc") to be displayed on the vehicle. Since 1998, owners of registered vehicles
not using the public roads have been required to submit an annual Statutory Off-Road Notification (SORN). Failure to submit a SORN is punishable in the same manner as failure to pay duty and display a tax disc when using the vehicle on public roads.
In March 1998,
graduated vehicle excise duty (GRAD VED) was introduced as an incentive to purchase vehicles with low emission levels:
- Automobiles registered before March 1 2001 are charged according to engine capacity. In the 2007 – 2008 tax year this was pound Sterling115 for cars with a capacity under 1550Cubic centimetre and £180 for those of 1550cc and above.
- Cars registered on or after March 1 2001 are charged according to their level of carbon dioxide (CO2) emission. For the tax year 2007 – 2008 this was up to £300, with the least polluting vehicles paying no excise duty at all.
- The highest rates of Vehicle Excise Duty ("Band G") only apply to vehicles manufactured after 23 March 2006 - the maximum VED for vehicles manufactured before that date is £205 for petrol and diesel powered vehicles.
Rates for all other vehicles vary from £15 for
motorcycles with an engine capacity under 150cc, up to a maximum of £1,850 for the largest
heavy goods vehicles (HGVs). (Special rates apply to HGVs not used commercially.) A few special-purpose vehicles such as ambulances are exempt.
In
tax year 2002 – 2003, it is estimated that evasion of the tax equated to a loss to the
Exchequer of £206 million. In an attempt to reduce this, from 2004 an automatic £80 penalty (halved if paid within 28 days) is issued by the DVLA computer for failure to pay the tax within one month of the expiry of the previous tax disc. A maximum fine of £1,000 applies for failure to pay the tax, though in practice fines are normally much lower.
The Police have also been granted devolved powers to tow or clamp any vehicles a police officer or PCSO sees, that is unlicensed on a public road.
Also note that vehicles registered before 1 January
1973 are eligible for a free Vehicle licence under the "
Antique vehicle registration" legislation. This is due to the age of the vehicle and a presumption of limited mileage. Initially this was a rolling exemption applied to any vehicles over 25 years old, however the cutoff date was frozen in 1997. The change to "pre-1973" was unpopular in the classic motoring press, and a number of classic car clubs are campaigning for a change back to the previous system.
Future changes
In the pre-budget report of 27th November
2001 the Government announced that VED for HGVs could be replaced, by a new tax based on distance travelled, the Lorry Road-User Charge (LRUC).{{cite press release]|url=http://www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr01/press_notices/prebud_pbr01_presshmt1.cfm--> At the same time, the rate of
fuel duty would be cut for such vehicles. As at the start of 2007 this scheme is still at a proposal stage and no indicated start date has been given.
The primary aim of the change is that HGVs from the UK and the continent pay exactly the same to use British roads (removing the ability of foreign vehicles to pay no UK tax). However, it is also expected that the tax will be used to influence routes taken (charging lower rates to use motorways), reduce congestion (by varying the charge with time of day), and encourage low emission vehicles.
In June
2005 the government announced plans to adopt a similar road user charging scheme for other road vehicles, which would work by tracing the movement of all vehicles using a telematics system. The idea raised immediate objections on
civil rights and
human rights grounds that it would amount to mass surveillance. An online petition protesting this was started and reached over 1.8 million signatures by the closing date of 20th February 2007.
See also
Notes
External links
- Current UK VED rates
- VED evasion in the UK
