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Lost Vehicle Excise Duty revenue hits £107m

New government figures show car tax evasion has continued to increase since the 2014 abolition of the tax disc in 2014.

Lost Vehicle Excise Duty revenue hits £107 million

Lost Vehicle Excise Duty revenue hits £107 million

Latest Department for Transport data indicates that 1.8% of vehicles on UK roads were unlicensed in 2017 – up from 1.4% in 2015.

The data suggests the cost the Treasury is more than £107m in potential lost revenue over a full year – 1.7% of the total due and higher than in any year since 2007. This compares to the Treasury’s original estimate that abolishing the paper tax disc would save £10m.

In response, the RAC has called for increased driver education about how and when to tax vehicles, coupled with stronger enforcement.

RAC public affairs manager Nicholas Lyes added: “From 2020, Vehicle Excise Duty receipts will also directly fund improvements to our strategic road network, so it is vital every effort is made to make sure we tackle evasion so our road network does not lose out on essential investment.”

Earlier this month the DVLA launched a new ‘Tax it or lose it’ campaign warning of the dangers of not taxing vehicles as it warned that it is currently clamping or impounding around 10,000 untaxed cars every month.

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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.