Budget 2020 – logistics taxes and charges

Following the 2020 Budget – The FTA has provided its members with a breakdown of the new related to the UK haulage industry.

. Fuel Duty – Frozen for a further year.

. Fuel Duty relief for red diesel – Scrapped for sectors other than agriculture, rail and home heating from April 2022. It will take effect in two years and affected sectors will be consulted with over the summer to see if relief is justified in any other cases.

.Heavy Goods Vehicle Van Excise Duty (VED) and Levy – Freeze in 2020-21.

. Van benefit charge nil-rating for zero-emission vans – From April 2021, the government will apply a nil rate of tax to zero-emission vans within the van benefit charge. This measure will save businesses an estimated £433 per van in tax in 2021-22.

. VED rates for cars, vans and motorcycles – To increase in line with RPI inflation from 1 April 2020.

. Company vehicles – From 6 April 2020, fuel benefit charges and the van benefit charge will increase in line with CPI.

. Call for evidence published on VED – Will seek views on moving towards a more dynamic VED system and how VED can support a reduction in road transport emissions.

. Plastic packaging tax – 30% recycled content threshold to be met or £200 per tonne for production and imports.

. Business rates – Announcement of a fundamental review of the long-term future of business rates to report in the autumn and that some smaller retail stores, hospitality and leisure business will not pay business rates this year.

Source – FTA enews extra