Motorists bracing for a rise in Vehicle Excise Duty (VED) car tax increases are being advised they can take action. Drivers who take ownership of new petrol and diesel vans will be hit with significant VED rises due to revisions in first-year rates, with van owners particularly impacted as VED is calculated based on emissions.
Research from Go Compare indicates that diesel van drivers might face an annual increase of £1,807.75, while petrol van users could see an additional £1,354.84. These hikes pose a serious concern for those already struggling financially, especially those dependent on their vans for work.
However, Tom Banks, a motoring specialist at Go Compare, has highlighted some simple strategies to mitigate the impact in April. He advises that switching to a cleaner vehicle model is the most straightforward cost-saving measure, but also suggests looking for savings in other areas of motoring expenses.
Tom commented: “If you can’t buy a suitable hybrid or electric van, you could go for a ‘nearly new’ one instead. This lets you enjoy a vehicle that’s pretty much as good as new without breaking the bank and means you can dodge the increased tax.”
He added: “Failing this, see if there are any other ways you can reduce your motoring spending to counteract the higher tax,” reports the Express. “Comparing van insurance policies might help you find a provider offering the same amount of protection for less, and finding new ways to maximise your fuel economy could help to cut costs further.”
Go Compare predicts that if 2024 sales patterns persist, van drivers will face an additional £15.5 million in costs over the first six months of the new tax year. This forecast is based on an analysis of data from the Department for Transport, examining privately owned van registrations in the first half of the 2024 tax year and applying new VED rates to estimate potential costs from April.
Chancellor Rachel Reeves confirmed in her Autumn Budget statement that first-year rates would increase from Spring 2025. HMRC has stated that fees were updated to “widen the difference between zero-emission, hybrid and internal combustion engine cars”.