As of today (April 1), new higher car tax rates are now in effect, with some drivers now having to pay out hundreds more pounds each year.
Vehicle Excise Duty (VED) fees are rising 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. 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.
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The VED increases will mean some drivers could face hundreds of pounds more in charges. That said, those who have a fully electric vehicle are still exempt from paying VED fees – for now.
From today (Monday), cars registered on or after April 1, 2017, will pay £10 more with standard rates rising from £180 to £190. Owners who bought brand new cars worth over £40,000 in the last five years will also face an Expensive Car Supplement.
This will add an extra £410 to their bill from April, up £20 from £390 over the financial year.
First-year VED bands for cars registered after April 1, 2021, will also jump up based on their CO2 emissions. For example, a car that gives off between one and 50g/km CO2 will have to pay £10 road tax.
This price rises with the more CO2, all the way up to owners of vehicles with 255+ g/km CO2 having to pay a staggering £2,605 in road tax for the year.
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