Is road tax cheaper for a campervan?

Unless it’s kept off-road a home on wheels needs to be taxed and insured. You might know the rules for car tax, but tax for campervans is a little different. What are the rules, and how can you keep down costs such as tax and campervan insurance? Find out in this quick guide.

The rules on vehicle excise duty (VED) changed recently. It’s important to keep up with changes to these costs so you can budget for keeping your campervan in the year ahead.

Campervan insurance is another important cost to consider. If you’re looking to cut the costs of touring next year, take a look at campervan insurance companies that specialise in this type of insurance, like us here at Lancaster.

We’ll be able to search our panel of providers to find the right level of protection for you and your vehicle – whether it’s a new van or a more classic model.

Why is motorhome insurance potentially confusing?

It’s very important to make sure you check any information you find online about motorhome VED is up to date. It’s easy to get confused because in September 2019, a change was introduced that increased the payable VED for new motorhomes by a substantial amount.

Under the 2019 rules, motorhomes were reclassified and required to provide a statement that confirmed the vehicle’s CO2 emissions. The emissions level was used to calculate the VED payable.

However, the change in VED only lasted around six months before the government made a U-turn and reversed the changes. From 12 March 2020, the requirement to carry a statement of CO2 emissions was scrapped and motorhomes were returned to the Private/Light Goods Vehicle or Private/HGV Vehicle taxation categories.

However, vehicles that were issued with a CO2 emissions certificate before the 12 March 2020 continue to operate on different rules, as explained below.

To cut a long story short, make sure you know the current rules about motorhome and campervan road tax because the system has fluctuated in recent years.

How is VED for campervans calculated?

The rules for road tax for cars are relatively simple. Most cars registered are taxed based on how much CO2 they produce, with the most polluting cars paying higher tax.

The applicable tax bands can be found on the government website.

Slightly different rates apply depending on whether your car was first registered before or after 2017, and cars that are 40 years old or more are zero-rated for tax.

When it comes to campervans, however, a wider range of factors are considered. This is because campervans vary widely from a humble vehicle that’s barely bigger than an estate car to a substantial motorhome that’s practically a hotel on wheels.

To work out the VED that is payable for your campervan, you need to know which classification of vehicle your van falls into. This is determined by its revenue weight (above or below 3,500 kg) and engine size (above or below 1549 cc.)

A few other factors might be relevant, such as when the vehicle was produced. Let’s look at these factors.

The basic rules

All campervans pay a different rate of tax depending on engine size. However, the date when your vehicle was first registered also determines which rules you need to follow. There are different rules for vehicles registered:

1. More than 40 years ago
2. Before 1 March 2001
3. Between 1 April 2017 and 11 March 2020
4. All other dates

Let’s go through each of these in turn.

Vehicles over 40 years old

If you drive a classic camper, the good news is that you may be zero-rated for VED. Vehicles that are over 40 years old are in the ‘historic tax class’, which means you can apply for a vehicle tax exemption. The exemption applies from April after your car turns 40.

The bad news if you drive a classic camper is you’re likely to be facing significant maintenance costs. Besides the risk to you, your passengers and other road users if you drive a faulty vehicle, the penalty for driving a vehicle in a dangerous condition is a fine of up to £2,500 and 3 penalty points. It can also be tricky to insure classic campers - specialist ampervan insurance companies like Lancaster can help.

The classic vehicle exemption is very similar to the situation with cars, as we explained in our feature on the classic cars that became tax exempt in 2022.

Do be aware that, although you no longer must pay any tax, you still have to ‘tax’ your vehicle – it’s just that your tax is set at zero. The way to do this is to apply for vehicle tax exemption. There is some helpful advice on how to do this on the Government web page dedicated to so-called 'vehicles of historic interest'.

Vehicles registered before 1 March 2001

The rate you pay will be based on engine size alone.

Engine size (cc)	Single 12 month payment	Single 12 month payment by Direct Debit	Total of 12 monthly instalments by Direct Debit	Single 6 month payment	Single 6 month payment by Direct Debit
Not over 1549	£180	£180	£189	£99	£94.50
Over 1549	£295	£295	£309.75	£162.25	£154.88

Vehicles registered between 1 April 2017 and 11 March 2020

Vehicles that were registered between 1 April 2017 and 11 March 2020 pay a different rate of tax after first registration if they are classed as being within the M1SP category and they have CO2 emissions that are included on the ‘type approval certificate’ (also known as a ‘certificate of conformity’ or ‘individual vehicle approval’.)

The M1SP category refers to ‘Special Purpose’ vehicles, designed and constructed for special purposes. This includes motorhomes and caravans as well as specialised vehicles such as ambulances, wheelchair-accessible vehicles and hearses. You can ask your dealer to confirm whether your vehicle falls within this category.

M1SP vehicles first registered in this period without a CO2 emissions figure on their paperwork pay vehicle tax as if they were ordinary cars. Those with a CO2 figure are taxed according to how much CO2 they release. A higher amount is payable in the first year after registration, followed by a lower amount subsequently.

The amount payable on first registration varies from £0 per year for zero emissions vehicles to £2,355 a year for the most polluting vehicles (emitting over 255g/km in CO2). Find the amount payable for your vehicle’s emissions here.

Tax in the second and following years after registration is lower and is dependent upon fuel type rather than emissions, with petrol vehicles paying £165 per year.

All other dates

Vehicles with a revenue weight of 3,500 kg or less are classified as private or light goods vehicles (class TC11). The revenue weight, also known as the maximum or gross laden weight, is the maximum permissible weight of the vehicle including its load such as passengers, bags and equipment.

You pay a different amount for TC11 vehicles depending on first registration date, engine size and whether you pay the tax in instalments.

Engine size (cc)	Single 12 month payment	Single 12 month payment by Direct Debit	Total of 12 monthly instalments by Direct Debit	Single 6 month payment	Single 6 month payment by Direct Debit
Not over 1549	£180	£180	£189	£99	£94.50
Over 1549	£295	£295	£309.75	£162.25	£154.88

If your vehicle has a revenue weight of over 3,500 kg it is classed as a private heavy goods vehicle (TC10). Engine size is not relevant to how much you pay, but the overall tax you pay will be a little higher if you choose to pay in instalments.

Single 12 month payment	Single 12 month payment by Direct Debit	Total of 12 monthly instalments by Direct Debit	Single 6 month payment	Single 6 month payment by Direct Debit
£165	£165	£173.25	£90.75	£86.63

Vehicles with a list price above £40,000

If you buy a vehicle with a list price above £40,000 an additional tax charge of £355 is payable annually in the five years after first registration unless the campervan is zero-rated for CO2 emissions.

So, for example, the annual tax payable on a petrol vehicle is £165, but if the vehicle list price is over £40,000 you will pay an additional £355, making the full tax rate £520.

Budgeting for your campervan

Campervans are a huge amount of fun, but they can also be a financial headache if you are not careful to plan. With household budgets under a squeeze from inflation and growing prices, it’s important to be as clear as you can about what your campervan will cost.

VED is an important cost for campervan owners and, as set out above, the amount you must pay can vary as rules change. On top of the purchase price of your vehicle and VED, you will also need to pay for maintenance, campervan insurance, site fees, parking fees, and running costs such as fuel, gas and so on.

It’s a good idea to double check the government VED website regularly and check in with any tax changes announced in the annual budget - otherwise you could be caught out by a rule change and face a cost you have not planned for.

Find campervan insurance that is right for you

It makes sense to ensure you are getting value for money from your campervan insurance. Some insurance policies might come with a rock-bottom premium, but unfortunately you might also get rock-bottom customer service and support when you need it most.

Always be careful to check what’s covered in a policy before buying, so you know what level of risk you are taking.

When you’re looking for campervan insurance companies, come straight to the specialists at Lancaster. We’re pleased to offer dedicated campervan insurance policies. Our cover can include benefits*, including:

• Gas Bottle & Awning Cover
• Windscreen Cover
• Optional Breakdown Cover
• 24-Hour Claims Helpline
• Personal Effects up to £6000

Do I own a motorhome or campervan?

Before you start getting quotes from ampervan insurance companies, are you sure it’s a campervan you’ve got and not a motorhome?

Let’s take a quick look at the differences between campervans and motorhomes.

Campervans:

• Typically, smaller than a motorhome
• The driving and living spaces will be combined
• No onboard toilet
• Basic appliances

Motorhomes:

• Typically, larger than campervans
• Separate driving and living spaces
• Full-size appliances - fridge, oven etc
• Onboard toilet or shower facilities

Don’t waste time searching around lots of campervan insurance companies. Come straight to the specialists! Here at Lancaster, we’re able to provide quotes for a range of campervans, from classics to modern vehicles.

Why not arrange an online quote from us today?

*Policy exclusions and limitations apply