Road Fund tax

[secret lemonade drinker]

Same applies to the caravelle previously

 

[Andrew Dyer]

Agree- I have just received a tax reminder for my 73 plate Ocean: £360 - stated as PLG.
On the V5 it states Tax class PLG, body type motor caravan, vehicle category M1.

Changes in VED came in from 1st April 2025.

 

[Andrew Dyer]

Unfortunately, the real question everyone isn't answering is, is a multivan, a car or a van?
Looking at it's pre conversion status it is a luxury car, hence the luxury car tax, the same as my 2017 beach 7 seater. If you can afford the car, you can afford the tax!

Affordability is not the issue, but I have plenty of other things I'd like to spend the money on rather than giving it to the taxman!

 

[owen_h]

Looking at the DVLA site: https://www.gov.uk/vehicle-tax-rate-tables
Then under the Rates for Second payments there is the statement:

"Vehicles with a list price of more than £40,000
You have to pay an extra £425 a year if you have a car or motorhome with a list price of more than £40,000. "

Motorhomes included here. Has something changed recently? Possibly at the same time elec cars also became liable for the luxury car tax.

 

[Andrew Dyer]

I will be thrilled to be proven wrong.

100%.

 

[Andrew Dyer]

Looking at the DVLA site: https://www.gov.uk/vehicle-tax-rate-tables
Then under the Rates for Second payments there is the statement:

"Vehicles with a list price of more than £40,000
You have to pay an extra £425 a year if you have a car or motorhome with a list price of more than £40,000. "

Motorhomes included here. Has something changed recently? Possibly at the same time elec cars also became liable for the luxury car tax.

Yes, based on information I have it changed from the 1st of April.

 

[owen_h]

Under the Motorhomes section :

Motorhomes​

The rate of vehicle tax is based on the vehicle’s revenue weight (also known as maximum or gross vehicle weight).

Private or light goods (TC11)​

Private or light goods vehicles have a revenue weight of 3,500kg or less.

Engine size (cc)	Single 12 month payment	Single 12 month payment by Direct Debit	Total of 12 monthly instalments by Direct Debit	Single 6 month payment	Single 6 month payment by Direct Debit
Not over 1549	£220	£220	£231	£121	£115.50
Over 1549	£360	£360	£378	£198	£189

The T7 hybrid California has a 1.5l engine so should be eligible for the lower £220 rate whereas the Diesel and Petrol California's are £360 is my reading.

 

[secret lemonade drinker]

Under the Motorhomes section :

Motorhomes​

The rate of vehicle tax is based on the vehicle’s revenue weight (also known as maximum or gross vehicle weight).

Private or light goods (TC11)​

Private or light goods vehicles have a revenue weight of 3,500kg or less.

Engine size (cc)	Single 12 month payment	Single 12 month payment by Direct Debit	Total of 12 monthly instalments by Direct Debit	Single 6 month payment	Single 6 month payment by Direct Debit
Not over 1549	£220	£220	£231	£121	£115.50
Over 1549	£360	£360	£378	£198	£189

The T7 hybrid California has a 1.5l engine so should be eligible for the lower £220 rate whereas the Diesel and Petrol California's are £360 is my reading.

Yep, and Private Heavy Goods 3650Kg £171 per annum

 

[andyinluton]

I will be thrilled to be proven wrong.

Well here's the table:

You have a vehicle taxed as PLG - the rates are clear & no mention of Luxury CAR tax.

Against the table for CARS it states CARS over £40k are subject to Luxury CAR tax.

You can check your reg using this link which will give you the correct rate

https://vehicleenquiry.service.gov.uk/

If that comes back that you are paying LCT then moan at your dealer as they've registered your van wrong.
I would bet that your dealer is looking at the table for tax rates for motorhomes registered after 2017, what he should be looking at is the table for motorhomes registered after 2021 which superseded it.

 

[andyinluton]

Unfortunately, the real question everyone isn't answering is, is a multivan, a car or a van?
Looking at it's pre conversion status it is a luxury car, hence the luxury car tax, the same as my 2017 beach 7 seater. If you can afford the car, you can afford the tax!

If its converted before registration & registered as a motorhome - as in vw Californias etc its a motorhome & PLG rates apply, if its registered before conversion & was originally a multivan its a car and the luxury tax applies if at first registration list price was over £40k .

 

[sticky1]

@Andy C Berks is correct, I’ve never seen so many wrong posts as this thread is producing :
Tax dropping after 3 years - rubbish
PLG affecting speed limits - nonsense
Year 2 tax on a Campervan £620 - absolute b*****ks
Quoting breeze as fact - 99% of their sales are vans not campers - they are quite often wrong when it comes to California specifics.

Motorcaravan on the v5 sets the speed limits same as cars

Tax class is PLG which is a sweep up class of vehicles that are not standard cars

M1 is the vehicle class - designed for carriage of passengers not goods

Motor Caravans are exempt from the luxury car tax.

History - for a brief period (2017- 2020 ish) motor caravans were liable for luxury car tax but the likes of vw complained that they were put at a disadvantage against converters. Converters would register a preconverted van at under the £40k then do the conversion and sell for more than £40k with the buyer avoiding the tax.

Andy - turns out you are spot on.

Thank you - for the rest of us doubting Thomas’ I called DVLA and they confirmed that the manufacturer had declared the vehicle as exempt from luxury car tax.

I’m glad you called me out as my previous experience with Defenders probably had me focussed on similar concerns about M1 / N1 registration classes.

Absolutely thrilled - now what shall I buy for the van to reward this news!!

 

[Badger15]

Can engine explain the current road fund licence fee on say a new T7 registered after 1 April 2025. I’ve 2 conflicting answers from main dealers.
One says “from 1 April if list price is over £40k it will incur an additional £425 from the second time the vehicle is taxed. “
Another dealer categorically states that RFL is currently £360 with no additional tax
Thanks

I just bought a new T7 a few weeks ago and the tax was £345 the £40k luxury car tax rule does not apply to these vehicles.

 

[Black Forest]

@Andy C Berks. Every day is a school day. I mentioned speed limits. What is the situation with these? Is it only an issue doe Transporters and van conversions with no changes to the V5?

 

[Black Forest]

Hmmm. Maybe the wrong "Andy"...

 

[WelshGas]

@Andy C Berks. Every day is a school day. I mentioned speed limits. What is the situation with these? Is it only an issue doe Transporters and van conversions with no changes to the V5?

Only applies to Commercial vehicles registered as N1, unless Body Type is Motor Caravan although there are a few anomalies.

 

[Tomdbreeze]

Good Afternoon Everyone

So to Clarify why the Hybrid Version of a California is initial Road Tax is £110 and then luxury vehicle tax after that is not down to anything to do with Kitchen Cabinetry or motorhome facilities. Its due to the additional weight of the PHEV Powertrain meaning that the vehicle is in fact classified as a M1 Passenger Car instead of a M1 SP Campervan as per the other powertrains.

The brochure is actually wrong and has now been raised to Volkswagen product to get removed and updated.

 

[Tomdbreeze]

It won’t drop after the 3rd year - that’s vehicles that qualify for the luxury car payment, which drops after 6 years.

Aside from the Beach without a kitchen then Californias should be registered as a Motor Caravan and Vehicle Category M1 = £360 pa (+£55 first registration fee in year 1). Being an M1 my understanding is that you can drive at 60mph on single carriageway national speed limit roads and up to 70mph when dual carriageway - I have never had a ticket for alternatively exceeding 50/60 on these roads.

VWs current brochure also confirms the £360 for both ICE and hybrid :-

View attachment 139756

If you actually look at the pricing above it actually doesn't calculate properly.