Car tax change on April 1 will hit petrol and diesel drivers

The M62 Brighouse exit at Junction 25

Drivers of petrol, diesel and hybrid cars will see new car tax rates starting from April 1. The Vehicle Excise Duty (VED) is going up, which might mean some drivers will pay a lot more.

On April 1, 2024, VED costs will go up with the Retail Price Index (RPI) inflation rate. HM Revenue and Customs (HMRC) has mentioned that although the rates “will remain unchanged in real terms”, these changes will still “impact” people who own vehicles.

The VED you pay mostly depends on how much your car pollutes. So, if you have a petrol or diesel car that makes more pollution, you’ll be hit hardest by this change. If you’ve got a petrol, diesel or hybrid car, get ready to pay more when the new VED rates kick in this spring, says WalesOnline.

But, if your car is fully electric, you don’t need to worry about VED fees for now. But keep in mind, this might change from April 2025. How much extra you’ll pay depends on your car’s age and pollution level. Cars that were registered after April 1, 2017, will see a £10 increase, with standard rates rising from £180 to £190.

If you’ve bought a brand-new car worth over £40,000 in the past five years, you’ll have to pay an additional fee called the Expensive Car Supplement. This will add an extra £410 to your bill from April, up from £390 over the financial year.

For those who purchased a new car last year, these changes could be costly. Cars that emit more than 255 g/km will have to pay an extra £140 in their first-year tax, making the total bill £2,745. But what about older cars? Cars that were first registered on or after March 1, 2001, are put into groups based on how much they pollute. If your car is in the top Band M group, you’ll have to pay £40 more, with the yearly cost going up from £695 to £735.

If your car is in Band L, the cost will go up by £35, while Bands K and J will see a rise of £20. Even cars that don’t pollute as much will see a price increase, but it won’t be as much. Cars with big engines (over 1549cc) that were registered before March 1, 2001, will have to pay an extra £20. If your car’s engine is smaller than 1549cc, you’ll only have to pay £10 more.