his article we’ll look at what the HGV levy is, who will have to pay it, how much you’ll have to pay, and whether non-UK drivers/transport companies are excluded.
What is the HGV levy?
The HGV levy was originally introduced in the HGV Road User Levy Act 2013 and came in to effect on 1st April 2014.
Designed to ensure that HGVs make a contribution for their use of the UKs road network, the levy ensured that the heaviest, most polluting vehicles paid a larger fee towards wear and tear of the UK road network.
The HGV levy was suspended in April 2020 in response to the Covid-19 pandemic in an effort to aid recovery in the haulage sector.
HGV levy consultation
Reforms to the HGV levy have been made following a consultation period held in 2022. These reforms mean that the levy is now based on environmental factors and air quality damage rather than purely road surface wear and tear, as agreed in government plans laid out in 2012.
Who will have to pay the HGV road user levy?
All HGVs weighing over 12,000kgs that are to be driven on the UKs roads will need to pay the HGV road user levy – i.e. all eligible HGVs registered in the UK and those registered outside of the UK.
The levy is calculated according to the weight of the vehicle (including the weight of the trailer if you have a rigid vehicle that pulls a trailer, the vehicle’s Euro emissions class and the amount of time spent in the UK.
As before, less polluting HGVs will pay cheaper levies. It is calculated that the newest lorries on UK roads generate 80% less nitrogen oxide (NOx) emissions than older ones.
In recognition of this, vehicles that meet the latest Euro VI emissions standards will be eligible for a 10% reduction in the cost of the HGV levy. Conversely, Euro Class V and older lorries will have to pay up to 20% more than under the old scheme. So it pays to upgrade your fleet to meet the latest Euro standards. Get in touch today to see how we can help with this.
HGV levy rates
From 1st August 2023 there will be just 6 categories/rates to choose from rather than the 22 that were available under the old levy.
Vehicle owners will be pleased to learn that the highest rate payable decreases from just under £1,000 to £749 per vehicle per year. The cheapest levy will be just £150 per vehicle per year.
The tables below outline the different rates of the HGV levy from 1st August 2023.
HGV levy – Euro 6 vehicles
| HGV levy band | Weight (kg) (*) | Daily rate | Weekly rate | Monthly rate | Yearly rate |
|---|---|---|---|---|---|
| Levy band A | 12,000 – 31,000 | £3 | £7.50 | £15 | £150 |
| Levy band B | 31,001 – 38,000 | £7.20 | £18 | £36 | £360 |
| Levy band C | 38,001 and over | £9 | £28.80 | £57.60 | £576 |
HGV levy – Euro 5 vehicles and older
| HGV levy band | Weight (kg) (*) | Daily rate | Weekly rate | Monthly rate | Yearly rate |
|---|---|---|---|---|---|
| Levy band A | 12,000 – 31,000 | £3.90 | £9.75 | £19.50 | £195 |
| Levy band B | 31,001 – 38,000 | £9.36 | £23.40 | £46.80 | £468 |
| Levy band C | 38,001 + over | £10 | £37.75 | £74.90 | £749 |
UK-registered HGVs – HGV levy
HGVs registered in the UK must pay the HGV levy annually or every 6 months at the same time as vehicle excise duty (VED) is paid.
I am from outside the UK.
How do I pay the HGV levy?
Non-UK HGVs must pay the levy before the vehicle arrives in the UK.
Operators can pay in advance for trips that will be made to the UK from 1st August.
Advance payments can be made online on the HGV levy payment website.
The HGV levy payment service enables you to:
- see your payment history,
- register and manage vehicles,
- allow someone else to manage your account on your behalf.
How long is the Non-UK HGV levy?
Non-UK vehicles can pay the HGV levy on a daily, weekly, monthly, or yearly rate depending on how long the journey will last.
A day runs from 12:00 (midnight) to 11:59pm on that same day.
Why is the HGV levy being reintroduced?
The UK government insists that the time is right to reintroduce the HGV levy as the UK economy continues to recover from the Covid-19 pandemic and as a means to tackle emissions and achieve environmental goals.
However according to the Road Haulage Association (RHA) whilst there is some disappointment that the levy is returning at a time when the UK faces widespread economic pressures, the RHA does support the wider purpose of the levy.
Ashton Cull, RHA Public Affairs Manager has said that SMEs are currently facing tight cost control, shrinking margins, and dwindling profits, and the reintroduction of the levy at the present time will lead to operators having to invest more in upgrading their fleets. His statement goes on to say,
“Bringing the HGV levy back this year, at a time when costs are consistently rising in the road haulage sector, is yet another burden upon the backbone of the UK supply chain. Our RHA Costs Survey last year showed the cost of running an HGV had increased by nearly 20%, driving up inflation across the UK economy.
It is also disappointing that the levy is no longer focussed on maintaining essential road infrastructure that all Britons rely on. We are clear that, when finding alternative methods to fund that vital expenditure, the Government must not impose any additional costs on our sector.”
The full RHA article can be read here.
If you are an HGV operator and are looking to upgrade your fleet to minimise the HGV levy rates that you will need to pay, contact MHF (UK) Ltd to see if we have the right vehicle in stock to meet your needs.
