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When the levy takes

25th October 2012
Page 2
Page 2, 25th October 2012 — When the levy takes
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Which of the following most accurately describes the problem?

Put it in your diary now: 1 April 2014. That is the day all operators of any truck of 12 tonnes or over will have to pay a levy of £1,000 a year for the pleasure of driving the vehicle up and down UK roads. OK, don’t panic too much. For the majority of vehicles there is the well-publicised reduction in VED that effectively makes the charge revenue neutral for all but the very smallest number of LGVs (see page 6).

But operators need to be wary that when (or should that be if?) the HGV Road User Levy Bill becomes law, anyone who hasn’t paid the levy could end up with a £5,000 fine if taken to court.

Equally, that will be the case for all foreign-registered vehicles. They have to pay the same £10 a day for the largest of vehicles, or a £1,000-a-year maximum. They will be subject to the same fines if they do not keep up with their payments, and they do not benefit from the same cuts in VED.

That said, there are lots of ways that foreign-registered operators have advantages over their UK counterparts – cheaper derv on the Continent for a start. A more laissez-faire attitude to drivers’ hours and vehicle maintenance standards apply to some too.

The levy doesn’t have much leeway to account for these advantages, but CM has to praise the government for pressing ahead with the charge and introducing legislation into parliament this week. It has even brought the proposed introduction date forward by 11 months for foreign-registered vehicles. It’s a lot better than the last lot did for the industry, that’s for certain.

Christopher Walton


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