The government has introduced a time-based road levy for foreign HGV drivers to create a level playing field for UK hauliers, who face similar charges and road tolls across the EU. The measure is expected to raise £20m in tax revenues
The HGV road user levy comes into force a year ahead of schedule. All HGVs at or above 12 tonnes using UK roads are now required to pay the charge, which is structured in a series of bands to reflect vehicle type, maximum weight and axle configuration.
The levy rates are the same for foreign and UK-registered HGVs, which the government says removes the previous inequality where UK hauliers paid tolls and levies to use roads abroad but foreign hauliers faced no charges to drive on the UK road network.
Foreign HGVs must pay the levy before they use UK roads and can purchase for between a day and a year, with discounts available for longer periods. Those making regular visits to the UK can pay online using registered accounts on www.gov.uk. Infrequent visitors to the UK can choose to ‘pay and go’, and can make purchases online, at some point-of-sale facilities or by phone.
Non-payment of the levy is a criminal offence. The offence will generally be dealt with at the roadside with a fixed penalty notice of £300.
The government says ‘the vast majority’ of UK hauliers will notice no difference, as for nine out of 10 UK-registered HGVs, the cost of the levy will be fully offset by reductions in Vehicle Excise Duty (VED). The levy will be paid alongside VED in a single transaction in order to reduce administration costs.
The effective date is 1 April 2014.
