The former Prime Minister, David Cameron, once said that, ‘the war on motorists is over’. Unfortunately, he clearly failed to tell any of his colleagues and earlier this year the Chancellor of The Exchequer quietly announced in his budget (always a good time to deliver bad news) that Vehicle Excise Duty (VED), or road tax as we usually call it, was to rise in 2019 in line with inflation. This time, it is not just new cars that are affected, older cars may also be subject to an increase.
New Car Rates
The Government introduced a new rating system that came into force in 2017. For new car registrations after 1st April 2019 current rates will be amended upward thus:
Cars producing between 76g/km and 150g/km CO2 pay £5 more
• 151 to 170 g/km CO2 - +£15
• 171 to 190g/km CO2 - +£25
• 191 to 225g/km CO2 - +£40
• 226 to 255g/km CO2 - +£55
• Over 255g/km CO2 - +£65
Rates for vehicles producing less than 76g/km of CO2 emissions will not increase, while zero-emission cars are exempt from paying road tax.
Used Car Rates
For the vast majority of cars registered since the new system began in 2017 there will also be an increase. The fixed standard rate (paid from the second year onwards) will increase from £140 to £145 for petrol and diesel models, with hybrids rising from £130 to £135. A premium tax to be paid for the first five years at the standard rate on cars with a list price of £40,000 or more has also been increased from £310 to £320. In short nobody gets away scot-free unless you are driving a zero-emission electric car.
Drivers or buyers of cars registered before April 2017 need not feel smug either because you are going to have to stump up an extra fiver unless your vehicles emits less than 120g/km of the nasty stuff, in which case you’ll get away with it.
Confused? Well, that’s our tax system for you. Fortunately, there’s an easy way to find out the amount you have to pay: the DVLA's vehicle enquiry service. Enter your car's registration, and it will come back with the make and colour of the car before showing information about the engine capacity and other details. If you have the car's V5C registration certificate (logbook), then you can enter the 11-digit reference number which will show you the tax rates for a vehicle. This applies to any car that's been registered and is on the road.
We, the public, call it ‘road tax’ and the popular misconception is that the cash goes to fund our road network. That’s never really been the case but this time we learn that the extra revenue will be ‘ring-fenced’ and used for the repair and renewal of our highways. Not before time.
Road Tax has traditionally been a grumbling issue motorists but it is the price we pay for our roads. Here at eCars247 we know that car buyers need to know all the attendant costs involved in any vehicle purchase, that’s why we publish the currently applying VED rates for every car on our website.