ouble check your VED!
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Some operators are running into problems when transporting loads which, because of their dimensions, require notification under the Construction and Use Regulations even though the rig is below the 38-tonne C&U weight limit. They can then find themselves facing a 'prosecution by the DVLA for underpayment of VED.
The current rate of duty applicable to a 38-tonner running on at least five axles is 3,210. This compares with a Special Types VED rate of 2.5,170.
It seems that the DVLA is targeting those non-heavy haulage companies who may be moving the odd load which exceeds the C&U dimensions limit, even though the vehicle and load weigh less than 38 tonnes. This was recently brought to a head in Teesside Crown Court, where the operators in question were fined. With this in mind, it is important for operators to know when they need to re-tax their vehicles at the Special Types rates. The penalties for non-payment of VED at the correct rate range up to five times the difference between the duty paid and the duty payable, or 21,000—whichever is the higher figure. This means the fine could be up to £10,000: five times the difference is 28,950, but the operator will also have to pay the back duty to the date the truck was last taxed or came into his possession.
Under the Excise Ad an operator can mitigate the back duty penalty iF he can prove to the court that on some of the months claimed he was not using the vehicle to carry loads which require the higher rate of VED. The factors which the operator needs to consider generally cover situations where the vehicle is carrying a wide load rather than a load over the 38-tonne C&U limit. The Vehicle Excise Act was amended by the Finance Act to take into consideration payments of VED for vehicles used for "exceptional loads".
LOCOMOTIVE The Vehicle Excise Registration Act of 1994, Schedule 1, paragraph 6, says: "A heavy motor car for the carriage of exceptional loads or a heavy locomotive, light locomotive or tractor used to draw trailers carrying exceptional loads and which is not a special concessionary vehicle has a rate of excise duty applied to the heavy tractor unit. An exceptional load is a load which by reason of its dimensions cannot be carried by heavy motor car or trailer which complies in all respects with the requirements of the Regulations under Section 41 of the Road Traffic Act by the Construction and Use Regulations." The heavy tractor rate is found in paragraph 11, sub-paragraph 1, of the Schedule: the VED over 38,000kg but not exceeding 44,000kg is £5,000. It is necessary to quote from this section simply to demonstrate the complexity of the legislation as it relates to the operator and his understanding of what is required. The effect of that definition is that the weight of the load is not necessarily a consideration for Special Types for taxation purposes. It will still be an exceptional load subject to a Special Types revenue rate if its use results in the C&U Regulations being exceeded—in particular Regulation 82, which indicates that the maximum width of any load is 4.3m. If the width is over 4.3m, even if it is an empty Portakabin where the train weight of the vehicle may only be 30 tonnes, the vehicle must be taxed at the Special Types rate of £5,000 for that journey. Normally the operator will be under police escort with a second man. The police will be under instruction to check the tax disc in the window of the towing vehicle to make sure that it is taxed appropriately, and to notify the DVLA if it is not.
REGULATIONS Obviously vehicles which are carrying a load less than 4.3m wide and within other C&U specifications will not require a change of rate for that 'tourney, even though the journey must be notified under the C&U Regulations.
From a practical point of view the operator would neecito tax the vehicle before that journey at the appropriate rote for Special Types, even for a one-off journey. After that journey he will then re-tax it at the normal rate, but effectively he will have paid for the whole month, even though the full Special Types rate only applied to one journey. If he repeats the exercise a few months later there would have to be provision for re-taxing the vehicle.
The DVLA produces a leaflet which will be of use to operators of vehicles which are normally used under the C&U Regulations but are occasionally used for exceptional loads. This leaflet should be read with care, and reference should also be made to the actual legislation—in particular to the definition of an exceptional load as referred to in the Vehicle Excise Regulation Act. Note that the wording in the DVLA leaflet might mislead operators into believing that the Special Types rate only applies to vehicles designed specifically for the transport of Special Types abnormal, indivisible loads. It would appear that this is not the case. Operators should take legal advice rather than the advice of the vehicle licensing enquiry desk at their local registration office. However, if the DVLA gives written advice in connection with a specific set of circumstances, it is unlikely to prosecute anyone who follows that advice.
POINTS TO PONDER
• The operator should measure the load and should not simply rely on the customer's declaration.
• The operator should re-tax the vehicle in advance for the month that he intends to use it to carry an exceptional load, even though it may only be for one day.
• The operator should keep a record where he has exceeded the C&U dimensions because in any back duty claim the onus will be on him to prove that he has not used the vehicle outside the C&U limit& • The Traffic Commissioners are particularly concerned about operators who do not tax their vehicles at the correct rate, and in some cases do not tax vehicles at all, because such operators gain an unfair commercial advantage. As a result the TCs will call such operators to public inquiries.
• Remember, if the vehicle and its load exceed 4.3m wide, a general rule of thumb is that the higher rate of excise duty is applicable.