Motorists will have to pay the new fee
From April 1, owners of petrol and diesel cars could see a rise in their Vehicle Excise Duty (VED) charges. Some drivers might have to pay hundreds of pounds more as VED fees increase with the Retail Price Index (RPI).
HM Revenue and Customs (HMRC) say that while the rates “will remain unchanged in real terms”, car owners will still feel the scheme’s “impact”. Cars that pollute more will see the biggest increase in VED costs. This means petrol, diesel and hybrid car owners will all have to pay more under the new spring rates. But for now, electric vehicle owners won’t have to pay any VED fees.
However, there are plans to change this after April 2025. VED bills will then depend on how old your car is and how much it affects the environment. If your car was registered after April 1, 2017, you could see an increase of £10 as standard rates go from £180 up to £190. And if you bought a car worth over £40,000 in the last five years, you’ll have to pay an extra charge known as the Expensive Car Supplement.
From April, the charge will increase to £410 from the current £390. This will mostly affect those who’ve bought brand new cars within the past year. Cars that emit more than 255 g/km will see a £140 increase in their first-year tax rates, with bills rising to £2,745.
Cars first registered on or after March 1, 2001, are put into bands based on their emissions. Drivers in the highest Band M category will pay £40 more, with charges rising from £695 to £735 per year.
Band L costs will rise by £35, while Band K and J rates will go up by £20. Prices will also increase for lower polluting vehicles, but by less across the other categories.
Vehicles with engines above 1549cc and registered before March 1, 2001, could pay £20 extra, while those below 1549cc will be charged just £10 more.
For more news across Surrey, visit our homepage here.
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