Key points from the Budget for van users.

The Chancellor announced changes to fuel prices, vehicle excise duty, electric vans and other measures in the Budget.

Instead of the expected 3p/litre increase in April, it was announced that fuel duty would rise by a penny in April, a further penny in October and 0.76p in January.

However, what the Chancellor failed to mention in his speech was that the duty incentive provided to oil refiners for biofuels production would end on April 1, which means a further rise in the cost of fuel.  The Petrol Retailers’ Association said it would result in “an increase to the cost of product by up to 1p/litre from April 1.  Thus the real increase to the motorist at the pumps right now equates to around 2.35p/litre – some 135% more than might have been perceived from his speech to the House.”

 

VED for LGVs registered before March 1 2001

VED band Change 2009-10 rate 2010-11 rate
Up to 1,54cc                 
+£5 £125 £125
Over 1,549cc +£5 £190 £205

 

VED for LGVs registered on or after March 1 2001

VED band Change 2009-10 rate 2010-11 rate
Euro 4 & 5 discount rate*
+£5 £125 £125
Standard rate +£5 £185 £200

* discount applies to Euro 4 compliant vans registered between March 1, 2003 and December 31, 2006, and Euro 5 compliant vans registered between January 1, 2009 and December 31, 2010.

Employees receiving company-funded fuel for private use will see their benefit-in-kind tax bills rise, as the van fuel benefit charge (on which tax on ‘free’ van fuel is paid) has increased from £500 to £550.

As of April 6, all electric vans are exempt from company car tax and the van benefit charge for five years.  A 100% first-year allowance has been introduced for the purchase of electric vans.

The Chancellor is also providing an additional £84/100 million to fund repairs for local roads damaged by the recent adverse weather, and £250/285 million for improvements in the motorway network – including the expansion of capacity by allowing hard shoulder running.