Road Tax (Vehicle Excise Duty) increases as of 1st April 2017

Running a new car will become more expensive for most car owners as of 1st April because of a new system of Road Tax (Vehicle Excise Duty). The increases apply irrespective of whether the car is owned by you or your business.

It is, perhaps, surprising to note that many cars which have a comparatively low CO2 emission rate will have to pay the biggest percentage increase in Road Tax. That factor is likely to hit many cars that are used for business travel.

There is a short term planning opportunity because the increases only apply to vehicles registered after 1st April: the same vehicle might be subject to a lower rate of Road Tax if purchased before 1st April. Typically, business vehicles are retained for 3 years, and each one of those years of ownership will be affected by the new rates of Road Tax. Adding up to a worthwhile saving.

Taking into account the permutations of how to finance a new car, it is now quite a complex matter to identify the best way to run vehicles within your business.  ad+ Chartered Accountants can provide financial and tax planning advice surrounding vehicle ownership.

Get in touch with David Charles to arrange your initial discussion with one of our Chartered Accountants.

E: dcharles@adplus.co.uk
T: 0141 643 9200