We like to keep ourselves informed about matters affecting commercial vehicle drivers. In their latest survey, Autotrader recently revealed that 62% of respondents were unaware of tax changes for Vans in 2023 and that increasing numbers of van drivers are facing rising costs.
In this latest blog, we look at the tax changes on the horizon for van drivers, explore where costs are rising, and offer tips on how to run your van more efficiently and save on your van insurance.
Van Tax Changes 2023: Are You Ready?
At the beginning of December 2022, the UK Government published the upcoming Van Tax Changes. For the tax year 2023 to 2024, the flat rate charge for the van fuel benefit will increase by just over 10% to £757, and the van benefit charge will increase by 11% to £3960. These tax changes are benefit-in-kind tax changes and apply when an employee is provided with a company van and fuel to use for personal journeys.
Along with these changes, the Government has also said that it intends to start charging vehicle excise duty (road tax) on fully electric vans from April 2025. Currently these are exempt.
As well as rising tax demands, should you be using a company van or have purchased an electric van for your business use, the trend for rising costs looks set to continue into 2023.
Rising Costs For Van Drivers
As part of the Autotrader survey, 27% of van drivers who responded reported that their running costs were at least £500 higher in 2022. While diesel prices are now starting to fall, with the majority of the 4.8 million vans registered in the UK running on diesel and the estimated 17% increase in fuel prices from the start to the end of 2022, it’s easy to see where the additional costs predominantly come from.
But it’s not just fuel that’s increased; with rising inflation, prices across the board have increased, adding costs to maintenance and servicing requirements too. So how can you run your van more efficiently? We’ve looked at the Energy Saving Trust Transport advice and have identified 5 top tips to run your van more efficiently.
5 Ways To Run Your Van More Efficiently
1. Downsize your vehicle – by fitting lightweight, space-saving racking, you may be able to maximise the load space and downsize to a smaller vehicle
2. Lower your speed – by lowering your speed from 70mph to 60mph, you could use 19% less fuel, according to Ford’s Transit demonstrator
3. Ensure correct tyre pressure – under-inflated tyres can increase fuel consumption whereas over-inflated tyres can increase wear and tear and reduce tyre life
4. Consider switching to an electric van – with increasing numbers of ULEZs being introduced, even though tax changes are afoot and electricity prices have also risen, you could incur less road charges with an EV van. Electric vans are also reportedly cheaper to maintain as they have fewer moving parts
5. Invest in eco-driving training – improving driver performance may not only reduce fuel costs but potentially lower accident rates and van insurance premiums
When it comes to van insurance quotes, as well as improving driver performance, there are a number of other ways you could save on your costs.
8 Top Tips For Saving On Van Insurance
Coversure Redditch has offered van drivers independent insurance advice and specialist policies since 2000. During that time, we’ve helped thousands of drivers cut the cost of their van insurance quotes without compromising the quality of the cover. So, we’ve come up with our top tips for saving on van insurance.
1. Use a specialist, independent insurance broker – at Coversure Redditch, we can do the leg work for you, and with our network of insurer partners we can find the right policy cover at the right price
2. Increase your policy excess – careful and experienced drivers often opt to increase their excess – the amount they pay in the event of a claim – as this will bring their premium down
3. Consider fleet insurance – if you have two or more vehicles in use for your business, you may find a van fleet insurance quote works out cheaper per vehicle and can save on admin time too
4. Take out a named driver policy – any driver policies provide flexibility but that will come at a cost, so if you know who’s driving, name them
5. Fit a Telematics system – a computerised vehicle trackers are proven to reduce accidents, and the fewer the claims, the lower the insurance premium
6. Keep your van secure – ensuring valuables such as tools are not left in your van and parking in a secure location overnight will help keep your van safer and reduce your insurance costs
7. Check the small print – make sure you’re not paying for optional extras you don’t need. At Coversure Redditch, our friendly team is on hand to ensure you get a policy that meets your needs without paying for the extras you don’t
8. Pay annually – paying monthly for insurance can work out more expensive; check the rates and pay annually if you can
Get a Van Insurance Quote
We hope this blog has helped clarify the upcoming tax changes and that the tips will help you save money while driving your van. If you would like a fleet or van insurance quote, please contact Coversure Redditch. You can call us on (01527) 757 585, email Coversure Redditch or get a cheap van insurance quote here.
Van drivers could get caught ‘off guard’ by tax increase, new survey reveals – Business Live (business-live.co.uk)
Income Tax: van benefit charge and fuel benefit charges for cars and vans from 6 April 2023 – GOV.UK (www.gov.uk)
Chancellor’s Autumn Statement 2022: Martin Lewis’s instant reaction to tax changes, state pension rises and further cost of living help (moneysavingexpert.com)
Motorparc Vehicles in Use (UK) – SMMT
Latest UK petrol and diesel prices | RAC Drive
Courier Insurance: 10 Ways To Save | Coversure