Changes to VED Charge
DVLA is encouraging drivers to pay their car tax before the system changes in April.
Chancellor Rishi Sunak will announce that the system for Vehicle Excise Duty (VED) will be changing. This announcement will come as part of his spring budget on March 23.
The Driver and Vehicle Licensing Agency (DVLA) has advised drivers to pay their car tax before the changes come into place or having to pay more.
The VED charge goes from the first of whatever month you pay in. For example, if you pay on the 16th of May, the charge will go from the 1st of May.
With the new charging system coming into action in the spring, drivers would save money by paying it now that waiting till April.
According to a policy paper published by HM Revenue and Customs (HMRC), the increase in tax is in line with inflation. They say this standard increase is in line with the Retail Price Index.
Comment
A spokesperson from Heycar, the online car marketplace, said “Some of these will be major and affect the cars that are built that year, others will be a more minor adjustment designed to bring an older tax system in line with inflation.”
How much VED you need to pay is dependent on how much CO2 your vehicle produces?
Vehicles producing over 255g of CO2 emissions per km travelled will see the tax for the first year raised from 2,245 to £2,365. Electric vehicles will continue to pay nothing in their first year.
Drivers can pay the vehicle tax easily through the DVLA website. Anyone caught driving a vehicle without the proper tax faces a £1000 fine.
The DVLA wrote on Twitter:
“Untaxed vehicles are hard to hide, easy to tax. Remember to always tax your vehicle on time.”
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Changes to VED Charge