Confusion among dealers over new VED rates

New vehicles registered for the first time with the Driver and Vehicle Licensing Agency (DVLA) from 1 April 2017 will pay new first year licence rates based on carbon dioxide (CO2) emissions bands which are different from the ones currently in use. In some cases, these fees will almost double.

For subsequent years and also if the registered keeper changes, a flat Standard Rate (SR) of £140 will apply. In addition to the standard rate, all vehicles with a list price over £40,000 will also attract an annual supplement of £310 for the first five years. Zero-emissions vehicles, not including hybrid, will not incur either the first year or standard rate.

“Many dealers are still not aware of the new Vehicle Excise Duty rates which will be introduced from 1 April. This is a complex issue and it is vital that dealerships are able to clearly communicate the changes to consumers to avoid further confusion”, said Sue Robinson, director of the National Franchised Dealers Association (NFDA), representing franchised car and commercial vehicle retailers across the UK.

Robinson continued: “The NFDA has been in constant dialogue with the DVLA to ensure that this complex reform is introduced and communicated as smoothly and accurately as possible. However, there appears to be some confusion amongst dealers with some of them still not familiar with the changes.

“We continue to urge dealers to consult our guidance documents and contact us or the DVLA if they need any clarifications.”