Everything You Need to Know About Motorhome Road Tax

Owning a motorhome allows you to explore sites across the country, but just like with any other vehicle, a motor home is subject to taxes. Understanding motorhome road tax will help you prepare when purchasing a motorhome and ensure you’re ready for the road. In this blog, we’ll tell you everything you need to know about this tax from how to pay, what to pay and any exemptions. 

Want to take the first steps to financing your own motorhome? Take a look at the brilliant motorhome finance options available at Auto Finance.

What is motorhome road tax?

Motorhome road tax, also known as Vehicle Excise Duty (VED), is a tax vehicles must pay if they are kept or driven on public roads in the UK. The VED tax rates vary depending on different factors including the age of your campervan, engine size, weight and CO2 emission levels.

With so many factors influencing the amount you pay, it can be difficult to understand how much you’ll be expected to pay. An easy way to know your tax bracket is to identify your campervan category.

Motorhome categories and their tax rates

Motorhomes have different categories that are used to help identify the correct tax amount you’re expected to pay.

Private/light goods vehicles

The majority of motorhomes are classified as PLG vehicles. These motorhomes are taxed based on their engine size, with vehicles that have an engine size of 159cc being taxed lower than those with engines above this size. 

Heavy goods vehicles

If you have a larger motor home that weighs more than 3.5 tonnes it is classed as a heavy goods vehicle and is taxed differently. The heavier your motorhome, the more you’re expected to be taxed. 

Euro 4 and Euro 5 motorhomes

These motorhomes can benefit from reduced road tax rates as they meet special emissions requirements. If you own a Euro 4 campervan registered between 1st March 2003 and 31st December 2006 you’ll pay a reduced rate of £140 a year. The same applies to a Euro 5 campervan registered between 1st January 2009 and 31st December 2010.

New motorhomes 

If your motorhome was registered after March 2001 it is classed as a newer vehicle and is taxed based on the CO2 emissions it produces. The higher the emissions, the higher your road tax payment. 

Historic motorhomes

Older motorhomes that were built or registered before January 1984 are exempt from road tax and MOTs. You are still expected to go through the tax process and you will still need to keep your vehicle in good condition even without an MOT or you could face fines.

To learn more about motor home types and classes, check out our dedicated blog on understanding motorhome classes.

How to pay your motorhome VED

Paying your motorhome road tax in the UK is easy, and there are a number of ways you can pay:

Direct debit

This is the most common way to pay as it ensures you never forget to pay or miss a payment. This method lets you pay every month, six months or annually and the payment is automatically withdrawn from your bank account. 

Online 

You can pay your motorhome road tax via the DVLA website. Before you start the payment process you’ll need your V5C registration certificate and bank details on hand.

Post Office

If you prefer to pay your bills in person, you can also pay your VED at the Post Office. You’ll need to bring your preferred payment method and vehicle registration certificate.

It’s essential that you ensure your road tax is paid on time and in full. If you don’t you risk fines, or having your vehicle impounded. 

Exemptions and motorhome road tax discounts

If you’re looking to manage your money and avoid additional charges, there are some ways you can avoid road tax. 

Disability exemption

If you are a disabled driver or you use your motorhome to transport a disabled person you could qualify for a partial reduction or full exemption from road tax payments. You can check your eligibility before you make any claim.

Electric motorhomes

Although it is uncommon to have an electric motorhome, if you do you’ll be able to avoid road tax as your vehicle will produce no CO2 emissions. To qualify you’ll have to meet a few requirements of an electric vehicle. 

Historic vehicles 

As we mentioned above, historic vehicles benefit from road tax exemption. This means if you want to save on VED, you could consider purchasing a vehicle over 40 years old.

How to keep on top of motorhome payments 

We know that owning a motorhome is a dream for many people, but the expenses involved in owning this vehicle can easily become overwhelming. There are, however, some ways to save money on a motorhome and manage your payments. 

Budgeting 

Make sure you know when your road tax and other payments are due and ensure you have enough funds in advance to put aside for these expenses. Adding the date to your calendar is an easy reminder.

Record keeping

Keep detailed records of all your motorhome details including registration information, tax and expense payments and any records of repairs or MOTs.

Stay updated on taxes

Rules and regulations can change at any time and the best way to ensure you don’t get caught out and face fines or any other complications is to stay on top of DVLA rules.

Find a magnificent motorhome with Auto Finance

Here at Auto Finance, we want everyone to be able to enjoy the freedom of cruising around in a motorhome. We offer a wide range of finance options to your needs so you can get on the road without worrying about the cost. Once you’ve submitted your application, we’ll find you the best rates from deals across the UK.

To get started with your life on the road, get in touch with Auto Finance today!

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