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DVLA & fleet industry discuss smooth transition for new car tax system

The group of BVRLA members – representing 18 rental and leasing companies – were the first companies to meet with the DVLA and were given an insight into the practicalities and benefits of the new system which comes into force on 1st October 2014.

DVLA head of vehicle policy Lianne Parkinson said: ‘There’s no one-size-fits-all solution, but the DVLA would like suggestions from commercial operators to take back to the Treasury. Meeting with BVRLA members is the first of many steps to ensure a smooth transition.’

Issues discussed at the meeting included the non-transferability of vehicle excise duty paid and the proposed direct debit system. Members welcomed the planned auto-refund scheme, and were able to raise their concerns about a number of other issues.

BVRLA legal and policy director Jay Parmar said: ‘We had a good meeting with the DVLA and explored the key changes which will take place once the tax disc is abolished.’

The DVLA has committed to holding more engagement events with rental and leasing companies before October, while the BVRLA will be producing guidance for businesses in due course.

Parmar added ‘We will now be working closely with the DVLA and our members to develop a communication plan to help ensure that drivers are happy that vehicles are taxed after 1st October.’

The DVLA used the event to highlight how the tax disc’s status has changed in the past decade. Some 60% of applications for VED are now made online, and compliance with VED stands at 99.4%, due to ongoing education and enforcement.

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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.