For 2008/9, the vehicle excise duty system retains the existing seven-tier structure, with a rise of £5 for vehicles in Bands C-F, with Band G vehicles rising to £400 a year. For cars in Band B, rates for petrol and diesel are frozen at £35, with rates for vehicles running on ‘alternative’ fuels also frozen at £15. Rates for Light Commercial Vehicles rise by £5.

For cars registered before March 2001 (pre-graduated VED), 2008/9 rates rise by £5, with the new rates set at £120 (1,549cc and below) and £185 (above 1,549cc).

All 2008/9 rates apply from March 13, 2008.

• Vehicle excise duty (VED) in 2008/9
• 2009 vehicle excise duty reform
• Company car tax in 2008/9
• Company car tax: calculating your benefit-in-kind liability in 2008/9
• Business mileage in a private car: reimbursement rates in 2008/9
• Employer-provided ‘free’ fuel for private mileage: benefit or liability?
• Capital allowances to be based on emissions of CO2 from April 2009
• Calculation of employers’ Class 1A National Insurance Contributions
• Company vans
• Biofuels