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New VED structure savings to be made

20th December 2001
Page 19
Page 19, 20th December 2001 — New VED structure savings to be made
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Which of the following most accurately describes the problem?

• Since 1 December 2001 the whole vehicle excise duty structure has been simplified. There are three tables: one for rigid vehicles, one for two-axle tractors and one for threeaxle tractors (see ever).

There are only seven excise duty bands; the rate of no for each band depends on whether a Reduced Pollution Certificate (RPC) has been issued. In most cases the new rate is lower than before—and downplating, sometimes by only one tonne, can result in considerable savings.

If the new rate is lower for your vehicle use form Y14 to claim a refund an the existing licence and a V85 to relicence at the new rates.

Existing VED licences can be handed in from 19 November 2001 and VED discs will be issued at the new rate. Operators will have to pay in full for the new disc and wait up to three weeks for a refund on existing discs.

If you decide to downplate and claim a refund use V70, which is the form for a licence exchange. This is different from the previous example whore the existing licence has to be handed in for a refund and a new one taken out. However, a WO for an exchange licence can only be used if the downplating will take the vehicle into a new tax band from 1 December 2001. If there are no weight changes, or if the downplating leaves the vehicle in the same band, you will have to claim a refund and re-licence.

To ease the workload on the VI there will be a three-month period of grace for replating. This means that all applications for new VED discs for

a vehicle which has been downplated to the end of February 2002 will have the VED reduction backdated to 1 December 2001. This will also apply where a vehicle is up-plated hut, due to the new lower VED rates, the actual tax paid is lower.

If vehicles were up-plated before 1 December 2001 the existing (higher) VED for that weight must be paid; applications for up-plating cannot be retrospective even if they are in the same VED band.

If there is only one new VED band applicable to a vehicle, the operator will be able to re-licence, once the existing disc runs out, using a V11 renewal farm at the Post Office or local VRTO. From now on all rigids and two-axle tractors grossing up to and including 25 tonnes, and three-axle tractors grossing up to and including 28 tonnes, will have their VED renewals sent out on a V11 form in exactly the same way as a car.

Once this scheme is fully operational in December 21102 about BO% of HMIs can be re-licensed at a Post Office or at the VRTO. However; a V11 will not be used for vehicles issued with a RPC.

Let's consider a two-axle rigid which is plated at 16 tonnes. Since 1 December it has a VED rate of 1650—and downplating to 15 tonnes would save you £450 a year.

You could save even more if you run three-axle rigids. A 24-tonner will pay 1650, but downplating to 23 tonnes would save £200—and downplating to 21 would cut your YED bill to just 1200 a year.

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Organisations: Post Office

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