There has been some good news recently for the haulage industry, according to the Chartered Institute of Logistics and Transport (CILT), with a suspension of the HGV Levy for a period of 12 months, from August 1 2020, until July 31, 2021.
With the impact of COVID-19 on UK and foreign hauliers still an ongoing issue, and with many struggling, ministers decided to suspend the Levy in order to reduce the financial liabilities for the sector.
The suspension will mean that over 100,000 hauliers will benefit from the cost savings.
The HGV Levy itself was introduced in 2014, and then revisited in 2019, with the aim of helping to improve air quality. The changes made in 2019 meant variable rates depended on trucks’ emissions.
Newer lorries, which meet the latest Euro VI emissions standards, are eligible for a 10% reduction on the standard rate. Owners of older lorries will have to pay up to 20% more.
The HGV Road User Levy only applies to heavy goods vehicles (HGVs) of 12 tonnes or more, which means smaller vehicles are automatically exempt. The Levy amount varies depending on the vehicle’s weight, axle configuration and duration of the Levy.
A Government spokesperson said in a recent statement to the industry that, "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 HGV Levy is intended to provide some relief to hauliers, given the difficulties faced by the sector during the pandemic."
Hauliers do not need to take any action in order to benefit from the year-long suspension. A levy rate of zero will automatically be applied at the vehicle’s normal VED/levy renewal date.
The Government will be working with freight representative groups to help develop and re-shape the HGV Levy according to CILT, and ensuring it continues to meet their current objectives, and plans for the future.