Fylde firms warned over VEDs

Martin Wigley
Martin Wigley
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Fylde coast businesses are being warned to plan ahead for a change in the car tax rates.

The Government has said that from April 2017, newly registered cars with low emissions will not qualify for lower car tax rates unless they have zero CO2 emissions.

Jones Harris Chartered Accountants are advising people that it could make a big difference to the running cost of a new car.

Martin Wigley (pictured), director with the Fleetwood based company said: “The Volkswagen emissions scandal is a current hot potato but the current generous car tax rates for low CO2 vehicles are set to largely disappear, which will affect many more drivers.”

“The current low car tax rates for vehicles with low CO2 emissions are due to be phased out in little over 18 months, so you may want to consider your car replacement options before the new vehicle excise duty (VED) regime starts in April 2017, applying to all cars first registered after that date.

“VED will be split into two bands: a starter band, which will apply for the first year, and a standard rate, which will apply to subsequent years of ownership. The rates gradually increase for the initial starter band. For emissions between 1 to 50g/km the starter rate is just £10. At the other extreme, cars with a CO2 rating in excess of 255g/km, the starter rate is a significant £2,000.

“Owners of all vehicles with a CO2 emission rate in excess of 0g/km will then pay an annual, standard rate of £140 for the second and subsequent years of ownership.

“This could create a potentially big increase for businesses with fleets,”