The new Vehicle Excise Duty (VED) rates are now in force, having come into effect this week (1st April 2026).
We’ve been aware of the changes coming for some time but now that they’re here, it could affect fleets who use company cars or the so-called ‘grey fleet’.
The main change is that new cards that produce more than 255g/km of CO₂ will see increases, with the highest first-year VED charge now reaching £5,690.
That includes a wide range of models across manufacturers but is mainly SUVs and pick-up trucks.
The government was keen to introduce the charge to reflect the environmental impact of larger vehicles as more and more people opt for larger vehicles than before.
CLICK HERE to read the full story on what the new VED rises mean for you and your fleet
It’s clear that the general message is ‘the higher the emissions, the higher the cost’ which is something that was inevitable as the motor industry shifts towards EVs.
While the changes won’t affect all fleets, first-year VED rates have edged up in most band, with the annual rate increasing to £200.
Company Car Tax is also rising, with Benefit-In-Kind (BIK) rates increasing by 1% as of 6th April 2026, so for fleets, there are plenty of tax changes to consider.
While electric vehicles remain a competitive option, the previous benefits for switching have been reduced as more EVs hit the road.
For fleets who are considering making the switch to electric, or who have already begun, it’s important to factor these costs and changes into replacement cycles to ensure that it makes economic sense.
It’s never been more important to have full visibility on your fleet, usage, drivers and to minimise risk, which is something we’re incredibly conscious of at Driving Monitor, including with our Risk Monitor and Fleet Monitor.
