British motorists face paying higher rates of car tax from today as a result of changes to RPI. Chancellor Philip Hammond quietly made the announcement in the Autumn Budget 2018.
It said: “From April 1, 2019, VED rates for cars, vans, and motorcycles will increase in line with RPI.” The stealth rise to vehicle excise duty will add up to £65 on to the cost of tax annually.
Owners of new cars face paying up to £65 while drivers of older cars could face being stung by up to £15 extra a year.
Cars registered between 1 March 2001 and 1 March 2017 will see a maximum £15 added to their standard annual rate. Vehicles registered after April 1st could pay up to £65.
The motorists to be hit the hardest are those whose cars emit high levels of CO2 over 255g/km, which is likely to just be supercars of large thirsty SUVs.
It is expected that the majority of motorists will be affected by a mere £5 increase to their first-year rate.
The VED g/km increases have now been revealed and are as follows:
76g/km and 150g/km CO2: +£5
151-170g/km CO2: +£15
171-190g/km CO2: +£25
191-225g/km CO2: +£40
226-255g/km CO2: +£55
255g/km CO2: +£6
This increase is added on to the first year rate of car tax which is based on CO2 emissions.
First-year car tax rates were increased in 2017 seeing them rise across the board, costing motorists up to hundreds more in year one.
For exhale a vehicle that emits up to 120g/km of CO2 went from paying £30 to £160, while vehicles emitting over 255g/km of CO2 went from acting £515 to £2,000.
After the first year rate, there are a set of standardised rates which motorists must pay in the seconds and subsequent years.
Rates for second tax payment onwards
Petrol or diesel – £140Electric – £0Alternative – £130
These rates will also be increased by £5 for petrol and diesels pay £145 while hybrid (alternative) pay £135.
There is as a luxury car surcharge applicable to vehicles which cost over £40,000 of £310. This will also be increasing today to £320.
In 2018 diesel car owners faced paying one tax band higher if their car did out meet the RDE2 emissions standards. This could add up to £500 on to the cost of tax annually.
To check how much car tax you need to pay then you can use the tool on the VCA (Vehicle Certification Agency) website.
Under the ‘Car fuel data, CO2 and vehicle tax tools’ you need to click on the ‘Find vehicle tax information on a new or used car’ section.
You can then cycle through a number of pages to determine which vehicle you have and when it was registered which should give you an accurate VED figure.
Drivers can also be fined a minimum of £80 for failing to have valid car tax. This can quickly rise to £1,000 if you’re caught by police or if your case goes to court.