Whether you run a fleet business or need a van for personal use, understanding Vehicle Excise Duty (VED), commonly known as road tax, is crucial. It’s often overlooked amidst the excitement of purchasing and arranging insurance, but getting it right from the start can save you unwelcome surprises later.
Road tax rules for vans vary by country. This article will clarify the latest UK road tax regulations specifically for Citroën vans.
Flat-Rate Road Tax for Citroen Vans in the UK
In the UK, most cars are taxed based on their CO₂ emissions and fuel type. However, Citroën vans, classified as Light Goods Vehicles (LGVs) under 3.5 tonnes, operate under a different system.
They are subject to a flat annual rate, irrespective of emissions. This applies to diesel, petrol, and electric van models alike.
Standard LGVs Taxes You’ll Pay
As of April 2025, according to gov.uk, most LGVs, including the Citroën Berlingo, Dispatch, and Relay, incur an annual tax of £345 for a single 12-month payment.
Payment options and their costs are as follows:
- 12-month direct debit: £362.25 (total for the year)
- Six-month single payment: £189.75
- Six-month direct debit: £181.13
Electric Citroen Vans in the UK
Previously, electric vans were exempt from VED. However, from April 2025, the UK government has aligned them with the standard LGV rate. This means electric models such as the ë-Berlingo, ë-Dispatch, and ë-Relay are now also taxed at £345 per year.
While this change might not be universally popular, electric vans still offer significant savings on fuel costs and remain eligible for government incentives like the Plug-in Van Grant. Overall, electric Citroën vans often result in lower running costs compared to traditional combustion engine vehicles.
Why the Tax Rates Changes in 2025?
This government initiative, effective from April 2025, aims to equalise the tax treatment of internal combustion engine vans and zero-emission vans. The rationale includes addressing declining fuel duty revenues and ensuring fairness across vehicle types. From this point onwards, all vans under 3.5 tonnes share the same VED rate.
Is there a first-year tax discount?
Unfortunately, no. The first-year flat rate for all Citroën vans in the UK is the same standard rate. Regardless of whether you purchase a new or used traditional or electric model, the £345 annual tax applies from day one.
However, you can opt for the instalment plans mentioned above if you prefer to spread the cost.
Does Your Van Classification matter?
Yes, absolutely. Even within the Citroën van range, there can be exceptions. For example, some Berlingo Crew Vans may be classified under the M1 (passenger vehicle) category if they feature extra seating.
M1 vehicles are not subject to the LGV flat rate; their tax is determined by their emissions.
Quick Summary Table
Van Type | Example Models | 12-Month VED | Direct Debit (12mo total) | 6-Month VED |
Standard LGV (N1) | Berlingo, Dispatch, Relay | £345 | £362.25 | £189.75 |
Electric LGV (from April 2025) | ë‑Berlingo, ë‑Dispatch, ë‑Relay | £345 | £362.25 | £189.75 |
M1-Classified Vans | Berlingo Crew Van (passenger spec) | Emissions-based | Emissions-based | Emissions-based |
Final Thoughts
From 1st April 2025, all Citroën vans under 3.5 tonnes in the UK face a flat annual road tax of £345. While this represents a slight increase for electric models, it simplifies budgeting and ensures transparency for all van owners.
Remember, vehicle ownership involves more than just the purchase price; it includes ongoing costs such as road tax, insurance, MOTs, maintenance, and fuel or electricity. When exploring Citroën Van Sales, it’s worth checking for deals that include service plans and warranties, as these can help manage overall running costs.