{"id":3156,"date":"2016-08-15T10:55:21","date_gmt":"2016-08-15T10:55:21","guid":{"rendered":"http:\/\/www.ukcarline.co.uk\/news\/?p=3156"},"modified":"2018-05-18T14:44:32","modified_gmt":"2018-05-18T14:44:32","slug":"2017-rfl-road-tax-changes","status":"publish","type":"post","link":"https:\/\/www.ukcarline.co.uk\/news\/2017-rfl-road-tax-changes\/","title":{"rendered":"What&#8217;s Changing in 2017 for RFL \/ Road Tax?"},"content":{"rendered":"<style>\ntable {\nwidth: 100%;\n}\nth {\nwidth: 33%;\nbackground-color: #b20800;\ncolor: #ffffff;\npadding: 5px;\n}\ntd {\nwidth: 33%;\n}\ntr:hover {\nbackground-color: #e48a8e;\ncolor: #ffffff\n}\n<\/style>\n<p><strong><font color=\"red\">UPDATE FOR 2018:<\/font><\/strong> For updated RFL changes, please <a href=\"https:\/\/www.ukcarline.co.uk\/tax-guide\">click here<\/a>, and for information on WLTP <a href=\"\/news\/what-is-wltp\/\">click here<\/a><\/p>\n<p>&nbsp;<\/p>\n<h1>What&#8217;s Changing in 2017 for RFL \/ Road Tax?<\/h1>\n<p>Way back in the summer of 2015, it was announced in the Budget that Road Fund Licence (RFL &#8211; Road Tax) would be changing in April 2017. The changes only apply to cars registered on or after 1st April 2017, and any vehicles registered before will be unaffected.<\/p>\n<p>Why are these changes being made? Simply to make RFL costs fair &#8211; making sure motorists who can afford a premium vehicle, such as the ultra-low emission Tesla or BMW i8, pay more. The reforms should be cost-neutral for the Government, which means the scheme should raise about the same money as the current, but will be more sustainable.<\/p>\n<h2>What&#8217;s Actually Changing?<\/h2>\n<p>The way existing RFL charges are calculated is being replaced with a system aiming at making the costs fairer. Key changes include:<\/p>\n<ul>\n<li>The first licence rate will still be based on CO<sub>2<\/sub> emissions, but the bands are changing.<\/li>\n<li>A standard rate of \u00a3140 will apply to all cars from the second year onwards, with the exception of zero CO<sub>2<\/sub> emitting cars, where the standard rate will still be \u00a30<\/li>\n<li>There will be an additional charge of \u00a3310 per year from the second year for 5 years for any car with an &#8220;RFL List Price&#8221; over \u00a340,000. After 5 years the RFL will revert back to the normal rate.<\/li>\n<li>Alternative Fuel cars will still get a \u00a310 reduction on RFL rates.<\/li>\n<\/ul>\n<h2>What&#8217;s The &#8220;RFL List Price&#8221;?<\/h2>\n<p>The new scheme includes a \u00a340,000 &#8220;RFL List Price&#8221; threshold &#8211; which adds an additional charge. It&#8217;s important we understand how to calculate it:<\/p>\n<p>What it includes:<\/p>\n<ul>\n<li>Manufacturer List Price including VAT as at the day before you register the vehicle.<\/p>\n<li>Option prices including VAT as at the day before you register the vehicle. (As fitted by the manufacturer)<\/li>\n<li>Delivery charges including VAT, including any pre-delivery inspection charges<\/li>\n<\/ul>\n<p>With electric cars, you calculate the RFL List Price <i>before<\/i> applying the OLEV grant.<\/p>\n<p>It is also worth noting any options set up to be P11D exempt are <i>not<\/i> exempt from &#8220;RFL List Price&#8221;.<\/p>\n<p>What is not included:<\/p>\n<ul>\n<li>First registration fee and the cost of the first licence.<\/li>\n<li>Warranty\/insurance and servicing packages.<\/li>\n<li>Options from the dealer or another third party.<\/li>\n<li>Modifications such as police packs or fire\/ambulance modifications.<\/li>\n<li>Modifications for disabled drivers.<\/li>\n<\/ul>\n<h2>What are the current RFL charges?<\/h2>\n<p>RFL costs for cars you register before 1st April 2017 will have the current charges remain. You can view these charges <a href=\"http:\/\/www.ukcarline.co.uk\/page\/tax-guide\">by clicking here<\/a>.<\/p>\n<h2>So how do the new charges look?<\/h2>\n<p>Registering a car on\/after 1st April 2017 will be subject to the new RFL charges shown below.<\/p>\n<table>\n<tbody>\n<tr>\n<th>Co<sub>2<\/sub> emissions<br \/>(g\/km)<\/th>\n<th>First Year Rate<\/th>\n<th>Standard Rate*#<\/th>\n<\/tr>\n<tr>\n<td>0<\/td>\n<td>\u00a30<\/td>\n<td>\u00a30<\/td>\n<\/tr>\n<tr>\n<td>1 &#8211; 50<\/td>\n<td>\u00a310<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>51 &#8211; 75<\/td>\n<td>\u00a325<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>76 &#8211; 90<\/td>\n<td>\u00a3100<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>91 &#8211; 100<\/td>\n<td>\u00a3120<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>101 &#8211; 110<\/td>\n<td>\u00a3160<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>111 &#8211; 130<\/td>\n<td>\u00a3160<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>131 &#8211; 150<\/td>\n<td>\u00a3200<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>151 &#8211; 170<\/td>\n<td>\u00a3500<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>171 &#8211; 190<\/td>\n<td>\u00a3800<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>191 &#8211; 225<\/td>\n<td>\u00a31200<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>226 &#8211; 255<\/td>\n<td>\u00a31700<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<tr>\n<td>Over 255<\/td>\n<td>\u00a32000<\/td>\n<td>\u00a3140<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><i>*Cars costing over \u00a340,000 pay an additional \u00a3310 rae for 5 years.<br \/>#Alternative fuel discount of \u00a310 on all qualifying cars.<\/i><\/p>\n<h2>Can you show me an example?<\/h2>\n<p>Below is for illustrative purposes only, and shows the difference in RFL cost and monthly rental cost between the existing RFL scheme and the new. It is based on a 3 year, 20,000 mile per annum contract for a vehicle costing more than \u00a340,000. (Above the threshold when the additional RFL rate becomes payable.)<\/p>\n<table>\n<tbody>\n<tr>\n<th>Range Rover Evoque<br \/>Diesel hatchback 2.0 Td4 HSE Dynamic<\/th>\n<th>2016\/17<br \/>RFL Regime<\/th>\n<th>1st April 2017<br \/>Onwards<\/th>\n<\/tr>\n<tr>\n<td>VED List Price<\/td>\n<td>\u00a341,345<\/td>\n<td>\u00a341,345<\/td>\n<\/tr>\n<tr>\n<td>VED Year 1<\/td>\n<td>\u00a30<\/td>\n<td>\u00a3160<\/td>\n<\/tr>\n<tr>\n<td>VED Year 2<\/td>\n<td>\u00a3110<\/td>\n<td>\u00a3450<\/td>\n<\/tr>\n<tr>\n<td>VED Year 3<\/td>\n<td>\u00a3110<\/td>\n<td>\u00a3450<\/td>\n<\/tr>\n<tr>\n<td>Total Monthly Rental<\/td>\n<td>\u00a3524.53<\/td>\n<td>\u00a3548.75<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>New Regime less than \u00a340,000 vs more than \u00a340,000<\/h2>\n<p>Below is for illustrative purposes only, and shows the difference in RFL cost and monthly rental cost for a vehicle which costs less than \u00a340,000 vs the same with common options added to take it above the \u00a340,000 threshold. This is also based on 3 years and 20,000 miles per annum.<\/p>\n<table>\n<tbody>\n<tr>\n<th>BMW 5 Series<br \/>Diesel touring 520d Luxury Auto<\/th>\n<th>No Options<\/th>\n<th>WIth Leather &#038;<br \/>Metallic Paint<\/th>\n<\/tr>\n<tr>\n<td>VED List Price<\/td>\n<td>\u00a339,009.37<\/td>\n<td>\u00a340,459.97<\/td>\n<\/tr>\n<tr>\n<td>VED Year 1<\/td>\n<td>\u00a3160<\/td>\n<td>\u00a3160<\/td>\n<\/tr>\n<tr>\n<td>VED Year 2<\/td>\n<td>\u00a3140<\/td>\n<td>\u00a3450<\/td>\n<\/tr>\n<tr>\n<td>VED Year 3<\/td>\n<td>\u00a3140<\/td>\n<td>\u00a3450<\/td>\n<\/tr>\n<tr>\n<td>Total Monthly Rental<\/td>\n<td>\u00a3541.44<\/td>\n<td>\u00a3580.32<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>What do I need to do?<\/h2>\n<p>Customers don&#8217;t need to <i>do<\/i> anything, however we would recommend you think about the impact of these charges. You can work closely with UK Carline to ensure that appropriate action is taken to minimise the impact of the charges.<\/p>\n<h2>Next Steps &#038; Further Information<\/h2>\n<p>The UK Carline team will be on hand to discuss the changed to RFL with you, and help you to understand the specific impact of the new regime for your fleet. We will also be able to advise on how you can ensure that your fleet is optimised so as to not be disadvantaged by the charges, particularly for vehicles around\/above the $40,000 threshold.<\/p>\n<p align=\"center\"><img decoding=\"async\" src=\"\/news\/wp-content\/uploads\/2016\/08\/2017-RFL-Changes-Header.png\" alt=\"2017 rfl road tax changes\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UPDATE FOR 2018: For updated RFL changes, please click here, and for information on WLTP click here &nbsp; What&#8217;s Changing in 2017 for RFL \/ Road Tax? Way back in the summer of 2015, it was announced in the Budget that Road Fund Licence (RFL<br \/><a class=\"moretag\" href=\"https:\/\/www.ukcarline.co.uk\/news\/2017-rfl-road-tax-changes\/\"> <strong>Read the full article&#8230;<\/strong><\/a><\/p>\n","protected":false},"author":1,"featured_media":3173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,8],"tags":[],"class_list":["post-3156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advice","category-car-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What&#039;s Changing in 2017 for RFL \/ Road Tax?<\/title>\n<meta name=\"description\" content=\"The method of calculating RFL\/Road Tax will be changing on 1st April 2017. 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