The Difference between a Motorhome and a Campervan
Before discussing the new tax policy regarding these vehicles, it is important to differentiate between them and consider which one suits your needs better since the new laws have made it so much more affordable to purchase and own one than before.
A campervan is basically what the name suggests, an affordable van that is fit to provide basic accommodation, usually a bed, a small refrigerator, and maybe a little cooktop. You can be up and on the road without the hassle and it usually suits a couple of people although, some models can have up to 6 berths. Many campers tend to hook their campervans to an external power supply however, with the more upscale ones; you can get more amenities such as a TV, waste water tank, a microwave, or even a caravan toilet. These upgrades tend to blur the difference between a motorhome and a campervan and if you’re interested, you can find campervans for sale online.
A motorhome is supposed to imitate a home on wheels; with distinguished areas designated for different activities; a separate couch and TV for essentially, the living room, a dining area, a bed, and most notably, a shower in the bathroom compartment. The driver and passenger chairs may also swivel to be included in the living space. This makes motorhomes more comfortable; in essence, a home on wheels. Finding a motorhome for sale online is also quite convenient.
Change in Tax Policy
A Road Tax is the annual tax payment made by all vehicle owners to use the 247,100 miles of road, waiting to be explored in the UK. This is used for the maintenance and further construction of roads.
A Vehicle Excise Duty (VED) is paid by the first buyers of a motorhome or campervan, relating to its CO2 emissions. This payment is to encourage the use of eco-friendly fuel alternatives by encouraging the purchase of such cars.
In September 2019, the excise duty on motorhomes and campervans saw a whopping 700% rise as these were no longer considered commercial vehicles and taxed as private cars in an EU ruling. However, in March 2020, this rule was reversed as these vehicles are built with commercial engines. The only downside though, is that citizens cannot reclaim the high tax payments made in the past. Since these laws are quite complicated, we tried to simplify them for you. However, for an in-depth look at each category, do visit the Government of the UK’s website and gain more information about your vehicle from your dealer to specify the category your vehicle falls in.
Tax Rates on Campervans
- Campervans weighing less than 3500kg (type approved M1SP), registered after 11 March 2020 pay a flat rate of £270
- For campervans registered after 1 April 2017;
- Private or light goods vehicles; TC11 (weighing up to 3500kg), having an engine size less than 1550cc are charged £170
- TC11 vehicles with engines over 1549cc are charged £280
- If your vehicle falls under the M1SP category and its CO2 emissions are included on the type approval certificate, the first-year tax payment (VED) is based on the CO2 emissions and can range anywhere from £0 to £2245 with reliefs for more eco-friendly cars. From the second year onwards a flat rate ranges from £0 to £155 depending on the type of fuel the car uses and an extra £335 if the vehicle costs more than £40,000
- Euro 5 compliant campervans under 3500kg, registered between 1st January 2009 and 31st December 2010 and Euro 4 compliant campervans under 3500kg, registered between 1st March 2003 and 21st December 2006 have to pay £140 per annum
- Campervans registered on or after 1st March 2001, under 3500kg pay £265
- Campervans registered before 1st March 2001, under 3500kg and 1550cc pay £170 and over 1550cc pay £280
- Vehicles over 40 years old are exempted from tax payments although you still have to register them as taxed.
Tax Rates for Motorhomes
- For Motorhomes under 3500kg, all the rulings are the same.
- For Motorhomes weighing 3500kg to 7500kg, a payment of £165 is required annually,1700kg to 11,999kg is taxed £200, and 11,999kg to 14,000kg Euro 6 compliant vehicles are charged £190 while Euro 1 to 5 compliant motorhomes are charged £221.
The greatest tax reliefs are obviously kept for alternative fuel cars which have low to no carbon emissions followed by diesel cars that RDE2 standard (the vehicle emits no more than 114mg/km of nitrogen oxide), then petrol cars, and finally, non RDE2 standard diesel cars with the greatest tax burden.
Another term mentioned is M1SP (M1 Special Purpose passenger carrying vehicle), to find out if your vehicle is categorized as one, contact your dealer.
The Caravanning Community is a very welcoming one and you’ll surely meet great people along the way. This liberating lifestyle is the most comforting it has ever been and with motorhome financing becoming more competent, you should definitely benefit from this tax policy u-turn.