Vehicle Excise and Registration Act 1994 section 37

Penalty for not paying duty chargeable at higher rate

Section 37 creates an offence and sets out the penalties for using a vehicle in a way that attracts a higher rate of vehicle excise duty without first paying that higher rate.

• If a vehicle licence has been obtained at a particular rate of duty but the vehicle is then used in a way that triggers a higher duty rate, the higher duty must be paid before that use begins.
• Using the vehicle at the higher-rated level without having paid the increased duty is a criminal offence committed by the person using the vehicle.
• On summary conviction, the penalty is the greater of a level 3 fine on the standard scale or five times the difference between the duty originally paid and the higher rate that should have been paid.
• The provision works in conjunction with section 15 of the Act, which governs when a vehicle becomes chargeable at a higher rate of duty due to a change in its use.