Millions of UK drivers to be hit with car tax hike within days

25 March 2024 , 12:57

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Heavy traffic moving at speed on the motorway [file image] (Image: Getty Images/iStockphoto)

In just a few days, changes to car tax will mean that drivers of certain petrol and diesel vehicles will have to pay an extra £140.

The Vehicle Excise Duty (VED) is set to increase across the board in line with the Retail Price Index (RPI) inflation. Some car owners could see a whopping £140 rise. Pete Barden has said that from April 1, 2024, there will be about a six per cent increase. This will affect those who own cars that pollute more the most.

It's thought that people who have bought new petrol and diesel cars that emit over 255 g/km of CO2 will have to pay £2,745 in road tax fees in the first year. That's a whopping £140 more than the £2,605 charge drivers had to pay to tax their cars last year. But it's not just the cars that pollute the most that will have to pay more. Cars that emit between 226 and 255 g/Km will face rises of £120, reports the Express.

Road users in this band will see their fees go up from £2,220 per year to £2,340 in April. Even cleaner cars that emit between 191 and 225 g/km will have to pay more, with charges going up by nearly £100. And it's not just brand new cars that pollute a lot that will be affected by the changes that are coming in just a few days. Standard rates for models first registered after April 2017 will go up by £10 per year under the changes.

This means that VED rates will be £190 per year, compared to £180 per year 12 months ago. VED price bands for vehicles first registered on or after March 1, 2001, are also going up. From next week, the most polluting cars (B and M) will see their charges rise from £695 to £735. Next month, Band L fees will also increase by £35, going up from £675 to £710. Owners of older vehicles registered after 2001 will also face higher costs, which is bad news for those who love classic models.

Self-employed Brits have just weeks left to submit tax return or risk £100 fine

If your car has an engine smaller than 1,549cc, you'll have to pay £210 per year in vehicle tax, up from the current £200 fee. For those with engines larger than 1,549cc, the annual charge will be £345, up from £325. Electric cars are still free from all VED charges for another year, with fees starting from April 2025. And if you own a classic car that's more than 40 years old, you can avoid these fees by applying for a historic vehicle tax exemption.

Rom Preston-Ellis