Car tax is set to go up amid a cost of living squeeze. Pictured are drivers queuing for petrol at Sainsbury’s in Castle Bridge Road, Nottingham.
There is a good chance that you will be paying more car tax from April – unless you have a fully electric vehicle, which is still exempt from paying Vehicle Excise Duty (VED) fees but there are plans to change even this from April 2025.
The new VED rates will hit petrol and diesel drivers and some could face hundreds of pounds more in charges, writes the Liverpool Echo.
VED fees will rise in line with the Retail Price Index (RPI) inflation from April 1, 2024. HM Revenue and Customs (HMRC) has said that while rates “will remain unchanged in real terms”, the scheme will “impact” vehicle owners. VED rates are mostly based on how much pollution a car emits.
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This means those with dirtier petrol and diesel models will be most affected. Everyone who owns a petrol, diesel or hybrid vehicle will have to pay more under the new VED rate rises this spring, according to the Star.
The cost of bills depends on the age of a vehicle and how much it pollutes the environment. Cars registered on or after April 1, 2017, will pay £10 more with standard rates rising from £180 to £190. However, owners who bought brand new cars worth over £40,000 in the last five years will also face an Expensive Car Supplement(ECS).
This will add an extra £410 to their bill from April, up from £390 over the financial year. Those who have bought brand-new cars in the past 12 months will be hit hardest by these changes.
Cars that give off lots of pollution will have to pay £140 more in their first year. But what about older cars? Cars that were first sold on or after March 1, 2001 are put into groups based on how much pollution they make. If your car is in the group that makes the most pollution, you’ll have to pay £40 more each year.
The cost for cars in the next group down will go up by £35, while the two groups below that will see prices go up by £20. Prices will also go up for cars that don’t make as much pollution, but not by as much.
If your car has a big engine and was sold before 1 March 2001, you might have to pay £20 extra. If it has a smaller engine, you’ll only have to pay £10 more.
To try and make things a little easier, we have now launched a new WhatsApp community to bring you the latest news and headlines straight to your phone. We’ll be bringing you all the headlines from across Nottinghamshire directly to WhatsApp – and you will get the breaking news first.
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