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2013 Budget: Minor changes to VED to benefit fleets

This year's Budget sees VED rates rise only in line with the Retail Price Index from 1 April 2013, apart from for heavy goods vehicles (HGVs) which will be frozen in 2013-14. 

ACFO has also highlighted that two measures hidden in the small print of the detailed Budget papers are likely to ease the Vehicle Excise Duty administration burden for fleet operators.

This includes an extension to the amount of time that a tax disc does not have to be displayed following the payment of tax from five working days to 14 calendar days.

This follows fleet concerns over the Government's decision to close the DVLA's 39 local offices in the summer and handle the distribution of all new tax discs from its Swansea head office, which led to concerns by fleets that new vehicles, could be delivered to end users by franchise dealers and leasing companies without the applicable tax disc.

In addition, legislative changes will be made which will allow advanced registration year round and 14 days in advance rather than just four days.

ACFO chairman Julie Jenner said: 'While the impact in the procedural change in the issuing of tax discs from July remains to be seen, we hope that the time extension will allay fears among some fleet operators that tax discs would have to be posted to drivers after they have taken delivery of their vehicle.'

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.