Commercial vehicle VED explained

Unlike private cars that have a wide and sliding scale of Vehicle Excise Duty (VED), which is commonly known as car tax, vans have a much simpler spread. Rather than being calculated on CO2 (carbon dioxide emissions) van VED is based on a mixture of age and EU emissions ranking.

This means that all light goods vehicles that were registered on or after 1 March 2001 and have a maximum vehicle weight not exceeding 3500kg pay £230 for 12 month’s tax. There are variations to this, so a van that meets Euro 4 emissions standards and is registered between 1 March 2003 and 31 December 2006 but still doesn’t break the 3500kg gross vehicle limit pays a reduced rate of £140 for 12 months.

The same £140 12 month rate applies to all light goods vehicles that fall into the Euro 5 emissions bracket and were registered between 1 January 2009 and 31 December 2010. As before, the 3500kg maximum weight limit still applies to these vans.

For older vans that were registered before 1 March 2001, the calculation is made solely on engine capacity and the amount you pay is clearly divided into two camps. For vans with an engine up to 1549cc in capacity, you pay £145 per year, while engines of more than 1549cc are charged a maximum of £235.

On 1 October 2015 the DVLA replaced the traditional tax disc with an all-new electronic system. As a result, owners are no longer are required to display a paper tax disc in their windscreen and instead tax their vehicle online, with a car’s status as taxed, untaxed or SORN recorded on a database linked to the registration.

Need more help with van tax? Click here for our guide to BiK and VAT


chris alcock    on 19 December 2020

I have a van converted to motorhome registered Nov 2007.The Euro rates are Euro 4---1 March 2003 -21 Dec 2006 / Euro 5 ---1 Jan 2009 -31 Dec 2010 .What euro rating are vehicles in the missing dates ---(22 Dec 2006 -31 Dec 2008 are they Euro $ as previous band ? My V5 does not state Euro band or emission rating .Could you advise where I can obtain this information Citroen Relay 2.2 L3/H2 Nov 2007.Thanks C R

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