Drivers should be prepared to pay more to keep their cars on the road from tomorrow as car tax prices are set to rise.
As part of Spring budget 2023, Vehicle Excise Duty (VED) will increase by 10.1 per cent in line with the Retail Price Index (RPI) from April 1. While rates can vary, petrol and diesel drivers' standard rate of car tax will increase from £165 to £180.
Car tax must be paid for all registered vehicles in the UK and it can be paid upfront in one payment, twice a year or every month. Experts say this increase will put more strain on drivers who are already enduring high motoring costs.
Speaking to the Express, Richard Evans, head of technical services at Webuyanycar, said: “The rise in Vehicle Excise Duty from April 1 will mean drivers face even higher motoring costs during an already expensive time.
"Our research shows that nine in 10 (92 percent) drivers have seen motoring costs increase over the last 12 months.”
According to the data, more than one in 10 drivers has considered selling their vehicle because of the cost of living crisis and general motoring fees.
Vehicles which cost more than £40,000 are also required to pay a higher levy of tax, which applies for five years. This will also be made more expensive going from £355 to £390.
Mr Evans added: “Whilst VED is calculated by the amount of emissions and engine size, the year the vehicle was registered can also have an impact on price. Drivers need to be aware of how much they should be paying and when they need to pay it as it is a legal requirement.”
Even if vehicles do not need to pay any tax on their vehicle, they must still go through the normal steps to ensure their vehicle is taxed and is road legal.
This applies to electric cars, with owners not needing to pay Vehicle Excise Duty until 2025, as announced by the Government last year. EVs will pay car tax in the same way as petrol and diesel vehicles from the middle of the decade.
It is being done to ensure everyone using the roads pays a fair amount of tax at a time when electric cars, vans and motorcycles will make up a large percentage of those on the road.
Other vehicles available for car tax exemptions include classic or historic vehicles, as long as they are older than 40 years old.
Richard Evans continued: “EVs and cars producing less than 100g of CO2 per kilometre don’t have to pay tax however, drivers still need to register the vehicle as taxed. Even if you think your car is exempt, you should still check the tax status online to avoid receiving any fines.”
Drivers can use the Government website to check their vehicle, which lists the expiration date of the car tax and MOT.
It also details what category of CO2 emissions applies to the vehicle, allowing them to assess how much extra, if anything, they will pay with the new rates. Motorists who may have a second-hand car can also see the tax rates for their vehicle with the latest reference number from their V5C logbook.
Motorists can avoid paying car tax if they declare their car as off the road - or Statutory Off Road Notification (SORN). If drivers want to do this, they should tell the DVLA, where they can get a refund for any full months of remaining tax.
However, once a car has been declared as SORN, it cannot be used on the roads again until it is taxed again. The SORN will also take effect if the vehicle tax has expired or if the driver is not applying in the month the vehicle tax is due to expire.
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