Confusion surrounds the details of the government’s recently announced 12-month vehicle tax holiday for hauliers, with the RHA fielding a “growing number” of enquiries from operators wanting more information on timings, eligibility and how the scheme will work in practice.
Earlier this month, Chancellor Rachel Reeves announced the HGV VED holiday - alongside an extension to the temporary 5p cut in fuel duty until the end of the year - as part of a package of measures designed to protect operators from rising fuel costs triggered by the Iran War.
The DfT said at the time: “The conflict has also pushed up costs for hauliers who keep Britain’s shelves stocked and its economy moving. The Chancellor is giving them a 12-month road tax holiday – meaning they will pay £1 at renewal, saving £600 for a typical heavy lorry and £912 for the biggest vehicles on the road.”
However, RHA said this week that full details of the HGV VED holiday have yet to emerge, which is leaving hauliers confused.
The association has been contacting DfT officials for more information and, so far, has ascertained that the scheme will run from 1 July 2026 to 30 June 2027.
During this period, qualifying HGV operators renewing their VED will pay £1 plus the HGV levy, which is not affected by the announcement.
Operators who have already renewed at the standard rate before this date will benefit, but the saving effectively will be realised at the end of the period.
The tax classes applicable for the holiday are: TC01 – HGV; TC02 – Trailer HGV; TC16 – Small Islands; TC23 – Combined Transport; TC57 – Special Types.
RHA added: “We continue to engage with DVLA and are awaiting more detailed operational guidance.
“Once we have this, we will release further information.”
