THE banding groups for Vehicle Excise Duty (VED) expands in 2009. VED is sometimes referred to as road tax.
VED Groups A-G have been joined by bands I to M.
At the same time the standard rate for cars with emissions below 150g/km reduces; while cars with higher emissions will pay more – as much as £440 for cars with emissions above 255g/km.
The following year, an additional tax over and above the standard VED rate is payable on new cars – a “showroom tax” . This will affect cars with emissions above 130g/km, the tax ranging from £115 to £950.
Alternative fuel cars – such as the Honda Civic Hybrid and Toyota Prius – have a discount of £20 (2008/09); and £10 (2009/10).
How will this affect your business motoring?
In most cases it is likely to increase the cost modestly. But not always. The key thing will be to time a replacement vehicle before the “showroom tax” kicks in. Let’s take some examples over three years.
Honda Civic Hybrid (hybrid qualifies for discount), 109g/km
- 2008/09 £15
- 2009/10 £0
- 2010/11£10
Audi A3 1.9 TDI Sport 5dr, 138g/km
- 2008/09 £120
- 2009/10 £110
- 2010/11 £115
Ford Mondeo 2.0 TDCi 140 Zetec 5dr, 156g/km
- 2008/09 £145
- 2009/10 £150
- 2010/11 £155
Mercedes-Benz C180 Elegance 4dr, 165g/km
- 2008/09 £145
- 2009/10 £175
- 2010/11 £180
Renault Grand Espace 2.0 dCi 150 Dynamique, 196g/km
- 2008/09 £210
- 2009/10 £260
- 2010/11 £270
Range Rover Sport 2.7 TDV6 HSE, 265g/km
- 2008/09 £400
- 2009/10 £440
- 2010/11 £455
