If your haulage firm has been hard hit by the Covid crisis, you’ll be relieved to know that a little help is at hand.
The Government has announced that the HGV Levy for UK-based and foreign trucks will be suspended for 12 months from 1 August 2020, the Chartered Institute of Logistics and Transport in the UK reports.
This will reduce the bills of around 100,000 UK-based operators, as well as those of European hauliers coming to the UK.
In a statement to industry, a Government spokesperson said: “The haulage industry is critical to keeping the country moving and plays a key role in supporting our economy recovery and growth. The suspension of the Levy is intended to provide some relief to hauliers, given the difficulties faced by the sector during the pandemic.”
Levy review announced
You do not need to do anything to qualify for the exemption. You will simply find that when you come to pay your Vehicle Excise Duty, or road tax, at your normal renewal date from August onwards, your levy will be set at zero.
All vehicles will benefit from a year’s relief, starting from their next renewal date.
The Government has also announced it will work with freight representative groups over the next year to review the HGV Levy to ensure that it continues to meet its objectives.
The HGV Levy applies to all trucks over 12 tonnes. The amount payable depends on the vehicle’s weight, axle configuration and levy duration.
In 2019, it was changed to vary rates depending on trucks’ emissions. The newest lorries which meet the latest Euro VI emissions standards are now eligible for a 10% reduction in the standard rate. Owners of older lorries have to pay up to 20% more.
Will the suspension of the HGV Levy make a difference to your haulage firm?