DVLA

Changes to Car Tax from 1st April 2017

Road Tax Reform: new prices from 1st April 2017

Road Tax Reform: new prices from 1st April 2017 https://wvl.co.uk/wp-content/uploads/VED-featured.jpg 660 300 Anthony Anthony https://secure.gravatar.com/avatar/a9c4089fd91833b9d9ac3cd2423e0fcb?s=96&d=mm&r=g

Announced in July this year, the Treasury has revised the current Vehicle Excise Duty (VED) payments for vehicles registered 1st April 2017 onwards to account for the growing number of tax-exempt cars being purchased – the current system, according to Osborne, being unsustainable.

Under the new rules, only Zero Emissions vehicles will remain tax exempt. If your chosen vehicle is emits 1g CO2/km or more, a one-off tax charge will apply to its first year based on a 13-band CO2 emissions based scale ranging from £10 to a staggering £2,000. Then, year 2 onwards, a flat annual rate of £140 will apply.

New VED system – for cars registered from April 1st, 2017
Emissions (g CO2/km) Year 1 rate Standard rate thereafter *
0 £0 £0
1–50 £10 £140
51–75 £25 £140
76–90 £100 £140
91–100 £120 £140
101-110 £140 £140
111–130 £160 £140
131–150 £200 £140
151–170 £500 £140
171–190 £800 £140
191–225 £1,200 £140
226–255 £1,700 £140
over 255 £2,000 £140
* Cars costing over £40,000 pay a £310 supplement in years 2 to 6

It seems that over 60% of vehicles which currently pay zero tax in their first year of ownership will likely see their costs rise.

Furthermore, if your vehicle costs over £40,000, an additional £310 supplement will be payable for five years once the Standard Rate kicks in, i.e. years 2 to 6.

Vehicles registered before 1st April 2017 will be taxed under the old system, i.e. on a scale ranging from £0 – £1,100 based solely on CO2 emissions.

Whilst these new payments will be earmarked solely for road repairs, maintenance and improvements – the first time since the 1930s, many are disappointed that the new rates may disincentivise manufacturers to produce low emissions vehicles as they strive for zero emissions.

How will current models fare?

AutoExpress have published an enlightening list highlighting the highest and lowest proportional increases. Surprisingly, certain Peugeot 208, Ford C-Max, Lexus IS300h and VW Passat models all suffer 950% increases in road tax over 3 years – from £40 to £420. At the other end of the scale, the SEAT Alhambra increases around 10% from £435 to £480 and the Ford Mondeo EcoBoost by 23% from £390 to £480, again, over a 3 year ownership period from new.

Seeing how the elevated tax for first year ownership is likely to cost us all more for the vast majority of vehicles, once again, leasing comes into its own with those initial outlays and losses (depreciation) associated with driving a brand new vehicle, being reworked into affordable, fixed, monthly payments.

Talk to us at WVL about your vehicle requirements, the new road tax implications, and how we can help you drive your choice of vehicle at the best possible price.

askMID.com – the roadside insurance check on your smartphone

askMID.com – the roadside insurance check on your smartphone https://wvl.co.uk/wp-content/uploads/mid-featured.jpg 660 300 Anthony Anthony https://secure.gravatar.com/avatar/a9c4089fd91833b9d9ac3cd2423e0fcb?s=96&d=mm&r=g

A new service recently launched by the Motor Insurers’ Bureau (MIB) will help millions of people unlucky enough to be involved in a road traffic accident: using your smartphone you can now check another vehicle’s insurance details at the roadside.

The service will not only help remove some of the stress involved in taking down important insurance details at the scene, it will also let you know immediately if any of the other motorists involved are not insured.

Using your smartphone, you simply visit askMID.com where you’ll then be asked to enter:

  • Your email address
  • Your vehicle’s registration number
  • The third party vehicle’s registration number

And for a fee of £4, you’ll then receive confirmation of insurer and contact details both on screen, as well as by email.

If any of the details given to you by the third party at the scene don’t match those in the MIB database, or the third party isn’t insured, you can inform the police or your insurers straight away.

The MIB still recommend that you note down all the addresses and contact details from all involved parties including witnesses, plus the vehicle registrations and insurance details; they suggest you may also want to take photographs of any damage.

Uninsured Losses

You may be thinking that people surely aren’t foolish enough to drive without insurance. Not so – whilst the number of uninsured drivers caught has decreased by 34% since 2011, still nearly half a million UK motorists have received penalty points for driving without insurance over the past three years. Uninsured driving remains a UK-wide problem.

And if that statistic isn’t enough, it is estimated that uninsured and untraced drivers kill 130 people and injure 26,500 every year. Research shows that uninsured drivers are also five times more likely to be involved in road collisions, and will fail to comply with other road traffic requirements.

Our advice is to bookmark the MIB website in your smartphone’s browser, and should the unthinkable happen, be sure to log on to askMID.com and make use of this invaluable service.

[Data from The Churchill report and the Motor Insurers Bureau.]

Licensing Laws

Licensing Laws https://wvl.co.uk/wp-content/uploads/licence.jpg 660 300 Anthony Anthony https://secure.gravatar.com/avatar/a9c4089fd91833b9d9ac3cd2423e0fcb?s=96&d=mm&r=g

We all remember the time our very first driving licence came through the post. This shiny piece of plastic with that very unflattering image or ‘mug shot’ on the front was like a pass to freedom. No longer were we bound by the restrictions of public transport, we were now fully qualified drivers. The road was our oyster and our licence the ticket.

Although we spend the best part of our teens longing for the day we finally receive our licence, most of us are only aware of two main things about them; they allow us to drive and they allow us to buy alcohol (if we’re ‘lucky’ enough to look under 25…) But there is much more to know about licences that should not be taken for granted. Did you know for example that the Queen is the only person in the UK who does not require one? Ok, so perhaps that is not the most important piece of information – but I guarantee you’ll tell it to the next person you see!

On a more need-to-know basis, there is a common misconception that your driving licence will expire on your 70th birthday. Whilst it is true that you do not need to retake your test, the photo-ID licence actually runs out after 10 years. You are able to renew your licence through the DVLA at the cost of £20. If your card expires and you do not renew it you could incur a fine of up to £1000 and receive between 3-6 points on your licence.

Have no fear, you do not need to circle the expiry date in your diary 10 years in advance, the DVLA will write to your home address prior to your card expiring to remind you. This brings forth another factor to consider: if the address on your driving licence is incorrect you could, again, be in line for a £1000 fine. A change of address should be done through the DVLA and can be done for free providing you send back both your counterpart and photocard; if you have misplaced one or both of these then you will be required to pay the fee of £20.

Once you have attained a full licence, you are able to drive any in Economic European Area (EEA). The same cannot be said for driving outside of the EEA however, as you may be permitted to apply for an international driving permit.

It has recently been announced that, as of February 2014, a new design of photocard will be introduced with additional security features; such as a new holographic image. Holders of the old design will not be required to attain the new photocard, but it shall be issued to those renewing or replacing their old card. Read more here.

A lot of confusion is cast over the different ages you have to be in order to drive certain vehicles. I have produced a table that I hope will answer some of the questions you might have. Please note that this is a rough guide and there are other variants which might affect whether or not you are eligible to drive certain vehicles (e.g. further training).

Vehicle Age
Car 17
Moped 16
Light Motorcycles 17
Large Motorcycles 21
Medium-sized vehicle with Trailer 18
Large vehicle with Trailer 21
Minibus (up to and including 16 passenger seats) 21
Bus 24
Agricultural Tractor 17
Road Rollers 21
Tracked Vehicles 21

For more information, please visit this link where you will find an interactive guide to age limits.

So there you have it, hopefully you now know a little bit more about driving licences than you did 5 minutes ago! If you have any further questions then please do not hesitate to call the team on 01753 851561.