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Car Tax / VED changes April 2022 ?

23rd Mar 2022
General

We briefly explain how the current Vehicle Excise Duty (VED) system works, what it means for UK motorists and how to check the cost of taxing your car.

You can check your vehicle : https://carfueldata.vehicle-certification-agency.gov.uk/vehicle-tax-new-used-vehicle.aspx

Vehicle Excise Duty (VED), commonly called car tax or road tax, is a mandatory levy for all motorists on the road. It can be anything from nil to £1,000 or more a year, depending on where your vehicle is on a pollution scale system is split into two parts.

By the end of this decade, the government will ban the sale of petrol and diesel vehicles, with measures already in place to drive up the switch to electric.

A new car’s tax cost can range from £0 to £2,245 in the first year depending on its CO2 emissions, although the cap is set to rise to £2,365 from April 2022. All cars then move to a flat annual rate for the second year onwards.

For drivers of petrol and diesel cars registered after 1 April 2017, that flat annual rate is currently £155, and for alternatively fuelled cars (hybrid, bioethanol or LPG) the rate is £145. For cars with a list price of £40,000 or more, an extra £335 tax is applied for the first five years. Drivers of cars producing zero emissions don’t have to pay car tax, even if the list price is more than £40,000.

If your car emits no CO2, your car tax will remain at 0.

If your car's CO2 emissions are between 1 and 50g per km, your standard rate of car tax will increase from £155 to £165, but your first year rate will still be £10.

We've broken down more of the rates below:

  • For cars that emit between 51 and 75g of CO2 per km, the standard rate will increase from £155 to £165, while your first year rate will stay at £25.
  • If your car emits between 76 and 90g per km, your standard rate will rise from £155 to £165, while your first year rate will increase from £115 to £120.
  • If your car emits between 91 and 100g of CO2 per km, your standard rate will increase from £155 to £165 and your first year rate will rise from £140 to £150.
  • For cars producing CO2 of between 101 and 110g per km, the standard rate will increase from £155 to £165 and the first year rate will increase from £160 to £170.
  • If your car's emissions are between 111 and 130g per km, your standard rate will increase from £155 to £165, while your first year rate will rise from £180 to £190.
  • If your car emits between 131 and 150g of CO2, your standard rate will increase from £155 to £165 and your first year rate will rise from £220 to £230.

The following types of car owners pay no car tax:

  • Owners of brand new cars that produce 0 grams of carbon dioxide (CO2) emissions and have a price of less than £40,000
  • Owners of a car registered between 1 March 2001 and before 1 April 2017 that produces up to 100 grams of CO2 per kilometre driven.

If you have a disability, you might be entitled to free car tax if you have an invalid carriage, such as a mobility scooter, receive War Pensioners’ Mobility Supplement or receive the Enhanced Mobility Component of Personal Independence Payment.

You don’t have to pay car tax on ‘historic vehicles’ meaning a vehicle that’s 40 or more years old.

The amount you pay also depends on how often you want to make a payment. There’s a 5% surcharge if you pay monthly or every six months.

The Driver and Vehicle Licensing Agency (DVLA) runs computer tests every month to check whether the owners of cars registered in the UK have paid tax.

If the system flags up an untaxed vehicle that is not declared SORN (not on the road), the DVLA will send a fine of £80 to the owner.

 

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