- 2017/2018 VED increase - figures confirmed
- Benefit-in-kind and fuel tax also up
- But no big taxation shakeup for LCVs
UPDATE: taxation figures for 2017/2018 confirmed - full details below
Now the dust has settled on the 2017 Budget, announced on Wednesday 8 March, we’ve been looking at what it means for van and pickup drivers.
The good news is that there are no major shake ups in the light commercial vehicle (LCV) sector as there is for cars, so operators who already know how van and pickup tax is calculated won’t be in for any major surprises.
If you’re not so familiar and want to know more, you can check out the Parkers Vans guide to taxation by clicking here.
Has van and pickup tax gone up in the 2017 Budget?
Yes. Vehicle Excise Duty (VED, commonly known as road tax), benefit-in-kind and fuel benefit have all increased for the 2017/2018 tax year.
The government - specifically the DVLA - originally said the VED increase would be 'no more the £5', but this turns out not to be the case.
How much is the VED increase for vans and pickups in the 2017 Budget?
The most common LCV tax class, TC39, which deals with the vast majority of vans and pickups registered after 1 March 2001, has gone up £10 from £230 a year to £240 a year, with the six months cost increasing from £126.50 to £132.
The increase for monthly direct debit payments is even higher, increasing from a total of £241.50 to £252.
However, if you own a qualifying Euro 4 (registered between 1 March 2003 and 31 December 2006) or Euro 5 (registered between 1 January 2009 and 31 December 2010) van, you'll be please to know that there's no increase at all.
The12-month cost remains £140, while the six-month stays at £77. Direct debit is available; opt for 12 individual monthly payments and your total will be £147.
What about benefit-in-kind?
Benefit-in-kind – or BIK – is charged at a flat rate on LCVs, and the figure for 2017/2018 is £3,230 – a £60 increase over 2016/2017 figure of £3,170.
Employees at the 20% income tax level will therefore face an annual bill of £646, or about £53.83 per month. That’s up from £634/year and £52.84/month.
At the 40% income tax level this doubles to £1,292/year and £107.67/month – up from £1,268 and £105.67.
Has van fuel benefit gone up as well?
However did you guess…
In this instance the increase is from £598 to £610.