The BBC has today reported on the growing confusion surrounding Vehicle Excise Duty, this being a tax which is levied as an excise duty on most vehicles which are used on the UK’s public roads. Those vehicles which have paid VED must display a tax disc (also referred to as a road fund licence and vehicle licence) to prove that payment has been made. In order to procure a tax disc, the driver must provide a valid MOT and a valid insurance certificate.
As disputes heat up between cyclists and cars, many arguments seem to refer to the fact that cars/vans pay for their right on the road, whereas a cyclist does not. However, this is not strictly true; the tax actually pertains to the cars/vans, as opposed to the road itself. The sums payable relate to the vehicle’s engine and emissions, so is actually more of a “pollution tax”. The sums payable go straight into the general Treasury fund.
As the report identifies, most road users incorrectly believe the tax payable is what builds/rectifies roads, when this is not the case. Various campaigners do want this to change, firstly for the Government to make it clear why road tax is payable and secondly, to consider road tax actually being re-invested into improving roads.
Thankfully at CarLease UK, all car leasing and van leasing deals do include the road fund licence/RFL/Tax Disc for the duration of the contract (applicable with all Contract Hire products), so our customers can be rest assured of no further payments. That being said, this does not entitle them to shout at passing cyclists!