Rachel Reeves introduces new £1 car tax fee to | Tech News
Rachel Reeves has launched a new £1 car tax fee with as many as 680,000 drivers within the UK possible to be affected by the replace. The Chancellor of the Exchequer has overseen a car tax vacation for HGV operators, with the new rule coming into impact earlier this week.
Hauliers can pay simply £1 once they renew their Vehicle Excise Duty between July 1 and June 30, 2027, that means street customers can benefit at any time when they’re scheduled to renew. The Road Haulage Association (RHA) defined the modifications in a essential replace to operators across the UK.
The RHA stated: “From 1 July, eligible HGV operators renewing vehicle tax will pay £1 in VED under the Government’s new 12-month payment holiday.
“The relief applies automatically to eligible vehicles taxed or re-taxed between 1 July 2026 and 30 June 2027. The HGV Levy remains payable where applicable, and Direct Debit will not be available for vehicles receiving the reduced rate.”
Data from the RHA means that there are as many as 58,262 street freight enterprises within the UK. The consultants have beforehand pressured that there are round 684,000 HGV drivers within the nation.
HMRC defined that the focused measure was launched in recognition of the important thing position the street haulage sector performs in transporting items throughout the UK. The low cost has been utilized after the sector was disproportionately impacted by rising fuel prices amid the battle in Iran.
HMRC stated the measure would reduces prices for UK hauliers and may have “no disproportionate impact on individuals”.
The British Vehicle Rental and Leasing Association (BVRLA) defined: “The measure will apply to a range of vehicle tax classes, including HGVs (TC01), HGV trailers (TC02), small islands vehicles (TC16), combined transport vehicles (TC23) and special types vehicles (TC57).”
Rachel Reeves beforehand stated: “I’m keeping taxes down for drivers and businesses – putting money in the pockets of millions of workers and cutting costs for farmers and hauliers.
“The war in Iran is pushing up fuel prices here at home but after strong growth at the beginning of the year, I am stepping in to protect people at the pump.”
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