New vehicle tax (VED) rules, set to start in a few weeks, could mean you’ll have to pay more for your petrol or diesel motor. If you own one of these cars, these new rules could make driving pricier.
Drivers should be ready for their VED fees to increase with inflation in line with the Retail Price Index from April 1, 2024. HMRC has said rates “will remain unchanged in real terms”, but this scheme will “impact” you as a car owner.
Your vehicle’s VED rate mostly depends on how much pollution it makes, so dirtier petrol and diesel motors will be most affected by this change. You’ll need to pay more if you own a petrol, diesel or hybrid motor once the new VED rate comes in this spring, our colleagues at the Star report.
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The only drivers who won’t see a change are those with fully electric cars, who don’t pay any VED costs. But be warned: there’s talks to change this from April 2025.
How much you pay depends on your vehicle’s age and how polluting it is. Vehicles registered after April 1, 2017, will have to pay £10 more, with costs going up from £180 to £190.
However, if you bought a brand-new vehicle costing over £40,000 in the last five years, you’re set to face an Expensive Car Supplement, adding another £410 to your bill from April, up from £390 over the financial year. Those among you who have splashed out on a brand-new vehicle in the past year will feel the heaviest impact from these changes.
First-year tax rates for cars emitting more than 255 g/km will see a £140 increase, with bills rising to £2,745. But what about older vehicles?
Cars first registered on or after March 1, 2001, are put into bands based on their emissions. Motorists in the highest Band M category are set to pay £40 more, with charges rising from £695 to £735 per year.
Band L costs will rise by £35, while Band K and J rates will jump by £20. Prices will also go up for lower polluting vehicles, but by less across the other categories.
Vehicles with engines above 1549cc and registered before March 1, 2001, could pay £20 extra. Those below 1549cc will be charged just £10 more.
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Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
