Simply Business - Insurance for your business

Call Us0333 0146 683
Our opening hours
Knowledge centre

Drive a diesel van or car for work? These are the changes you need to know about

1-minute read

Drive a diesel van or car for work? These are the changes you need to know about
Anna Delves

Anna Delves

27 November 2017

Fuel duty has been frozen again, marking the longest period without a rate rise in 40 years – but the outlook isn’t so rosy if you use diesel. Unless you're driving a diesel van, that is...

Diesel drivers to be penalised

As predicted, Philip Hammond’s 2017 Budget announced penalties for diesel drivers.

This April, new diesel cars that don’t meet the latest emission standards will face a one-band increase in the first-band vehicle excise duty rate.

Vehicle excise duty (VED) is calculated based on a vehicle's CO2 emissions, and for the first 12 months it ranges from zero up to £2,000.

On top of this, the existing diesel supplement in company car tax will be going up by one per cent.

Vans exempt for current rate hike

Importantly, the Chancellor made it clear that vans would be exempt from the current hikes in VED and company car tax.

“And we only apply the measures to cars,” he said during his address to Commons, “So before the headline writers start limbering up let me be quite clear: no white van man or woman will be hit by these measures.”

Government pledges construction training and 300,000 new houses

While the change to fuel duty will likely have the biggest immediate impact on tradespeople, there are some other parts of the 2017 Budget that you should be aware of:

  • By mid-2020 the government aims to be building 300,000 new homes each year
  • The tax-free personal allowance will increase to £11,850 in April next year
  • There will be a new national retraining scheme focusing on digital skills and construction
  • The National Living Wage will increase to £7.83 in April next year
  • There will be £44 billion in government support, including loan guarantees, to boost construction skills

How will this year’s Budget impact you? Let us know in the comments.

Are you protecting your trade?

As the UK's biggest business insurance provider, we specialise in public liability insurance and protect more trades than anybody else. Why not take a look now and build a quick, tailored tradesman insurance quote?

Start your quote

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

Find this article useful? Spread the word.


People also liked

Landlords could be targeted in new capital gains tax raid.

19 November 20202-minute read

Landlords could be targeted in new capital gains tax raid

Landlords could be hit by another massive tax raid, as the Office of Tax Simplification outlines its recommendations for an overhaul of…

Read more

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter


Popular articlesBusiness resources from FarillioGeneral businessGuestInsuranceLandlordLandlord resources from FarillioLegal and financeMarketingNewsOpinionProperty maintenanceTradesmanCovid-19 business support hub


6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ

© Copyright 2021 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.