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For the 11th consecutive year, the UK Government have announced that they will be freezing fuel duty. This is good news as it means that in 2021-22, the average car driver could save around £1,600 in comparison to the cost of fuel duty before it was frozen.
While the government may increase fuel duty in the future to promote their net-zero emissions targets for 2050, the reason they have continued the fuel duty freeze this year is to help you focus on funding your business - especially with the pandemic causing so many hard-working people problems across the UK, and particularly in rural communities.
Vehicle Excise Duty (VED)
From 1 April 2021, the government revealed that Vehicle Excise Duty (VED) – or more commonly known as road tax - will once again rise alongside inflation, so that motorists can make a fair contribution in comparison to rising costs. Unfortunately, this means that car tax will increase for most new car drivers during 2021. These updated VED bands affect cars first registered on or after 1 April 2017:
Tax Year 2021 to 20222
|Registered CO2 Emissions (g/km)||Standard Rate||First Year Rate|
First Year Rate Diesel Vehicles*
*Applies to diesel vehicles that do not meet the real driving emissions step 2 (RDE2) standard
Alternatively-fuelled vehicles, including hybrids, bioethanol and liquid petroleum gas, will pay £145 per year.
Cars with a new list price of over £40,000 will continue to pay an additional £325 per year on top of the standard rate for the first five years before returning to the rates listed above.
Plug-in car grant
Get in touch to discuss the future of your fleet
If you have any questions about how the Budget will affect your fleet and journey on the Road to Zero, get in touch. We're here to help with any of your fleet queries or questions.