Tag: fuel efficiency

New Tax Rise Set to Hit Millions of Van Drivers

Posted on by News Desk

Introduction

Undoubtedly, big changes are on the horizon for van owners in the UK.

From April 2025, Vehicle Excise Duty (VED) rates will increase for millions of drivers.

But not every van owner will feel the pinch.

Some van models are set to avoid the rise entirely, offering a silver lining for certain drivers.

New Tax Rise: What You Need To Know

Looking ahead to April 2025, significant tax changes are set to take effect for van owners.

As a result, this will mark a notable shift in financial planning for many drivers.

These adjustments are directly linked to Vehicle Excise Duty (VED), which is a tax applied to vehicle ownership.

Traditionally, VED rates have increased each year to keep pace with inflation, and unsurprisingly, this year follows the same pattern.

But what’s new? Zero-emission vehicles, previously exempt, will now be subject to these charges.

For van drivers, this means even electric vans will no longer escape taxation.

How Big Are The Increases?

The government is clear: this isn’t just a minor adjustment.

VED rates are expected to rise in line with the Retail Price Index (RPI).

For many petrol and diesel vans, the cost could climb by an additional £10, increasing from £345 to £355 annually.

While it may sound small, the collective impact is enormous.

With over 4 million vans on UK roads, these changes are projected to generate an extra £1.7 billion in revenue over the next five years.

If you’re worried about the combined costs, it’s worth reviewing your insurance.

You could explore the cheapest van insurance options to reduce overall expenses.

What Does This Mean For Van Drivers?

The financial pressure on van owners is steadily mounting.

In particular, new tax changes and rising costs are contributing to an increasingly challenging financial landscape for many drivers.

As a result, those who rely on their vans for business or personal use are increasingly likely to feel the strain.

And it’s not just about the tax increase.

Fines for non-compliance can reach up to £1,000, adding another layer of cost for those who fail to pay their dues.

“Untaxed vans could cost their owners far more than they realise.”

If you’re unsure about your current compliance, see our guide on proper vehicle compliance to avoid fines.

Financial Impact On Van Drivers

Let’s break down how these changes could affect your wallet.

1. Standard Van Tax Increases

For petrol and diesel vans, expect a £10 rise per year.

This increase may seem minor, but for businesses with large fleets, the costs can stack up quickly.

2. Zero-Emission Vans Are No Longer Exempt

For the first time, electric vans will now face new taxes, marking a significant shift in policy.

Starting in the second year of ownership, these vehicles will transition to the standard annual Vehicle Excise Duty (VED) rate.

For many drivers, this adjustment may come as a surprise, especially considering the previous tax exemptions for electric vehicles.

As a result, this change could potentially discourage some individuals from making the switch to greener, more sustainable options.

If you’re considering upgrading your van, make sure your new vehicle meets your insurance needs.

Check our blog on van insurance for new drivers for helpful insights.

3. The Government’s Perspective

Why is this happening?

According to HMRC, these increases ensure VED receipts keep pace with inflation.

But critics have labelled the policy “anti-vehicle,” pointing to its impact on already struggling motorists.

This is especially problematic for those relying on their vans for business, where profit margins are often tight.

If you’re looking for ways to save, consider reviewing our simple hacks to lower your van insurance.

Which Vans Are Exempt?

Not all vans will feel the brunt of these tax changes.

Certain models, especially older ones, will be spared due to specific compliance standards.

For instance:

  • Euro 4-compliant vans (registered between 1 March 2003 and 31 December 2006).
  • Euro 5-compliant vans (registered in 2009 or 2010).

These vans remain unaffected by the increases, keeping their annual Vehicle Excise Duty (VED) at £140.

This exemption is excellent news for owners of older models, especially businesses looking to cut costs.

However, if your van doesn’t meet these criteria, the changes could mean a higher annual expense.

To offset this, consider reducing your insurance costs by reviewing your policy options.

Understanding Weight And Vehicle Classifications

Beyond compliance standards, some vans escape the tax hike due to weight classifications.

Vans over 3,500kg or certain car-derived vans with extra rows of seats fall into separate tax categories.

If you’re unsure whether your vehicle qualifies, check your V5C logbook or consult a professional.

For additional guidance on ensuring your van meets regulations, explore our vehicle compliance guide.

Additional Costs Beyond Tax

The tax rise isn’t the only thing to watch for.

Van owners also face hefty fines for non-compliance.

Driving without paying the correct tax could result in:

  • A £1,000 penalty for untaxed vehicles.
  • Further penalties up to five times the unpaid tax amount.

Failing to comply with insurance requirements is another costly risk.

Non-compliant drivers could face fines or even prosecution, which is why staying insured is essential.

To ensure you’re covered, review the best van insurance options for UK drivers and avoid unnecessary stress.

How To Minimise The Financial Burden

1. Choose Exempt Models

If your current van falls under the new tax rules, switching to an exempt model could save you money.

Older Euro 4 or Euro 5-compliant vans may offer financial relief while keeping your business running efficiently.

2. Leverage Telematics Insurance

Telematics insurance, often referred to as “black box” insurance, tracks your driving habits to reward safer behaviour with lower premiums.

This can help offset rising tax costs while encouraging more efficient driving.

To learn more, visit our post on how telematics devices can reduce your van insurance.

3. Improve Fuel Efficiency

By optimising your driving habits, you can effectively lower fuel costs.

In addition, this approach can also help reduce wear and tear on your van.

Simple changes, such as reducing harsh braking, can have a noticeable impact.

Additionally, avoiding unnecessary idling is another effective way to make a difference.

Conclusion

The upcoming tax changes are poised to affect millions of van drivers.

However, by staying proactive and informed, you can significantly reduce their impact.

Whether by switching to exempt models, leveraging telematics insurance, or optimising your driving habits, there are ways to ease the financial burden.

Remember, non-compliance comes with severe penalties. It’s crucial to stay on top of both your tax and insurance obligations.

For more tips, explore these helpful blogs:

By planning ahead, you can avoid unnecessary stress and make the most of your savings opportunities.

Stay informed and secure your future today!

How to Save On The Cost Of Running Your Van

Posted on by News Desk

Christmas is coming. Want to save on costs?

While the goose may be getting fat, many of us are feeling the pinch in our pockets at the end of a tumultuous and unprecedented year. 

You all know the old saying, save the pennies and the pounds will take care of themselves.

While we here at Cheap Van Insurance work tirelessly to bring you the very best van insurance provider deals.

Direct to your inbox,

which are sure to save you a few quid, we thought we’d go through a few more ways you can save a few pennies. 

1: Summer is over. 

So turn off your AC.

Yes, we know you guys like being cool behind the wheel, but open a window and save yourself a few quid.

Running your AC year-round not only uses a lot of fuel, but also means you’ll need to pay to get your system re-gassed sooner.

So think twice before you have it on blast all day.

2: Stop costs going through the roof.

Literally.

Having stuff piled on the top of your van such as ladders can end up costing a few quid more than you need.

Of course, you need some of the stuff, but all of it, all of the time? Maybe not.

Not only does the extra weight add to fuel costs, but it also does a number on your aerodynamics,

adding more drag which again, equals paying more at the pumps.

3: Consider how much you fill up:

Adding fuel means adding weight and if you don’t need a full tank, why go all the way?

Fill up not quite so full and a little more frequently and you’ll pocket the savings.

4: Consider how much you fill up (part 2):

Do you really need everything in the back of your van?

Is your cab full of rubbish that can be binned?

Have a good clear out and only take what you need for your jobs. Less weight = less fuel.

It’s a smart and simple way to save a few bob. 

5: Drive in style:

If you have cruise control and can use it, do so.

If you have a more modern van with a fuel efficiency mode, use it.

We know it goes against the very ethos of many van men, but driving calmly and smoothly can really make the biggest difference to your fuel consumption and costs.

Go gently, easy on the brakes and slow on the revs and you’ll be able to see the difference in your wallet in no time.

Now, all that you need to decide is what you want to spend those savings on. Christmas is coming, after all. 

Ugliest van ever wins BISVA’s Green Van category

Posted on by News Desk

Van insurance news roundup: 7 days ending 28 Oct  2012:

What is easily the ugliest single vehicle to ever roll was recently the winner of the British Insurance Vehicle Security Awards’ Green Van category.

The dimunitive little van, a Frankenstein’s monster of a Ford Fiesta with its back seats ripped out and its rear side windows blanked out as well called the Fiesta ECOnetic van, has been a three time winner at BISVA in its category, thanks to its almost nonexistent greenhouse gas emissions. While the car insurance award is undoubtedly prestigious, it certainly doesn’t take aesthetics into account in any way, shape, or form, as the small van is remarkably queer-looking.

However, under that bizarre exterior resides an amazingly efficient diesel engine, as the Fiesta ECOnetic not only gets more than 85mpg but also only emits 87g/km in carbon dioxide emissions. Ford Britain was quite pleased after their ugly yet fuel-efficient little van was praised again, with Anthony Ireson, marketing director for the car manufacturer, commenting that the firm had been overjoyed to learn that their Fiesta Van had once more risen to the top of its class for small vans in regards to green technology.

Mr Ireson added that Ford Britain plans to continue offering technological innovations and new safety features with further iterations of the Fiesta Van in order to continue its past record of excellence. However, no word yet as to whether the manufacturer’s designers will actually design the outside of the vehicle with their eyes open this time.

Some of the ECOnetic’s features that earned it the high praise are Smart Regenerative Charging, auto start-stop, and the advanced diesel powertrain, Produced and developed at Ford’s Diesel Centre in Dagenham, the van also has a lower suspension and low rolling resistance tyres that combine with its diesel engine, a recalibrated 1.6-litre motor, all of which contribute to its high mileage.

So if you have around £10,800 and you’re in need of a fuel efficient van, this may be the vehicle for you, though you might not want to let your mates see you motoring about town in one.

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