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Vehicle excise duty evasion: 2010

17 December 2010

The Department for Transport has published National Statistics on evasion of Vehicle Excise Duty in 2010. The key results are as follows:

Rate of unlicensed vehicles in traffic

The overall rate of unlicensed vehicles in Great Britain traffic was estimated to be 0.8 per cent in 2010. This represents an increase from an estimated 0.5 per cent in 2009.
For different vehicle tax classes, evasion rates in Great Britain traffic were estimated to be highest amongst motorcycles at 3.0 per cent. This increased from 2.8 per cent in 2009, though is down from 6.2 per cent in 2007.
Evasion rates in Great Britain traffic rose between 2009 and 2010 for all tax classes.
Of the Government Office Regions, the West Midlands had the lowest evasion rate in 2010 at 0.6 per cent, while the North East had the highest rate at 1.4 per cent.
‘In traffic’ evasion rates rose on all road types between 2009 and 2010. The highest rate in 2010 was on minor urban roads (1.0 per cent) and lowest rate was on both motorways and A roads (0.7 per cent).

Rate of unlicensed vehicles in active stock

The overall rate of unlicensed vehicles ‘in-stock’ in Great Britain was estimated to be 0.9 per cent in 2010, equivalent to approximately 307 thousand vehicles. In 2007, the estimated rate was 0.7 per cent, equivalent to around 225 thousand vehicles.
This ‘in-stock’ estimate is slightly higher than the ‘in-traffic’ rate as unlicensed vehicles travel, on average, fewer miles than licensed vehicles and are therefore less likely to be observed on the road.
As with in traffic evasion, the rate for motorcycles was estimated to be highest for all tax classes at 3.4 per cent, or 42 thousand vehicles.

Revenue lost from unlicensed vehicles

It is estimated that vehicle excise duty evasion could cost around £46 million in lost revenue in 2010/11, up from an estimated £32 million in 2009/10.
* This loss is equivalent to around 0.9 per cent of the total revenue that could be raised in 2010/11.
Some of this revenue will have been recovered through DVLA enforcement activity or through vehicles’ keepers back-licensing their vehicles.

Characteristics of unlicensed vehicles

Thirteen per cent of unlicensed motorcycles and 18 per cent of unlicensed goods vehicles were observed whilst declared SORN (Statutory Off Road Notification). The equivalent figure for unlicensed private and light goods vehicles was 5 per cent and 6 per cent for buses.
Ten per cent of unlicensed vehicles were seen after the keeper paid the required VED and then claimed a refund.
Eighteen per cent of all unlicensed vehicles observed in the survey had remained unlicensed for at least a year. Fifty six per cent of motorcycles observed had not been licensed for at least a year, but only 14 per cent of private and light goods vehicles had remained unlicensed for this length of time.
The most common period of time that observed vehicles had been unlicensed was up to two months. Fifty two per cent of the unlicensed vehicles observed were up to two months outside of their previous licence period (or first registration); 15 per cent had been unlicensed for between two and four months.
Seventy two per cent of unlicensed vehicles were over five years old, compared to 53 per cent of all licensed vehicles.
The owner details were not known for 13 per cent of unlicensed vehicles seen in the survey. Amongst all licensed vehicles, details of ownership are unknown in only 2 per cent of cases.

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