Road tax in the UK – how much road tax do I pay

Road tax, recognized by way of more than a few names around the world, is a tax that has to be paid on, or protected with, a wheeled car to use on a public road. A car tax was once first added in Britain in 1888. In 1920, an excise responsibility was once added that used to be in particular utilized to motor vehicles; in the beginning, it was once hypothecated (ring-fenced or earmarked) for avenue building and paid at once into a specific Road Fund. 

Firstly, “road tax” no longer exists, and has no longer existed when you think about the 1930s. What drivers do pay, however, is Vehicle Excise Duty, which is oftentimes viewed as avenue tax on the other hand is now no longer strictly the same thing. Vehicle Excise Duty – what you pay for your car’s tax disc – is primarily based on your vehicle’s emissions.

Who pays for the roads? 

Businesses that pay enterprise fees additionally make contributions into the countrywide coffers. And that is the place the cash for roads comes from the consolidated fund, the treasury’s pot of money that can pay for everything. Taxation in the UK is raised through one set of users and spent on that set of users.

 Realities of Road Tax Changes In 2020 – What Will I Pay?

This year has been normal, and that goes for motoring guidelines and rules too. Many MOT expiry dates have been extended, using training and checks have been postponed, and we have viewed some of the lowest petrol fees for greater than a decade over the closing few months.

That said, Vehicle Excise Duty (VED) – typically known as road tax or automobile tax – used to be reviewed and overhauled as a phase of the Spring Budget in April. For many drivers, this potential that the quantity of road tax owed will have increased. But how many tons of road tax will you want to pay from 2020?

How will the road tax increase affect you?

One way of beating the tax extension is by understanding precisely what it is and why it is occurring in the first place. Here’s the whole lot you want to be aware of about the road tax (VED) modifications set to take the path on 1st April 2021.

If you are a driver in the UK, you may recognize that you have to pay for something known as Vehicle Excise Duty or an avenue fund license (commonly known as auto tax or road tax). The amount you pay will rely on elements such as engine size, gas kind, and the quantity of CO2 emissions your automobile generates at the time it is first registered.

You can now apprehend why diesel vehicle proprietors commonly have to pay a greater charge of VED than petrol users, and why electric-powered car proprietors are exempt from paying vehicle avenue tax entirely. In easy terms, the decrease in your CO2 emissions is the decrease in the fee of your automobile excise duty.

Previously, this was once measured via the New European Driving Cycle check (NEDC) which was first developed in the 90s and final up to date in 1997. However, with the upward push in superior science in the final decade, NEDC trying out has ended up out of date and is no longer in reality consultant of real-life driving.

Instead, a new technique of checking out known as Worldwide Harmonised Light Vehicles Test Procedure (WLTP) replaces it. The upcoming WLTP technique is capable of deciding an extra practical contrast of your vehicle’s professional gas consumption (mpg), using vary and CO2 emissions (g/km).

As a result, your vehicle’s CO2 emission output will change, putting it in a greater tax band to its cutting-edge rate, inflicting an expansion in the price of your avenue fund license for the first year.

Road tax in 2020 – what has changed?

Road tax tends to increase every year. The quantity of street tax you will pay this 12 months will rely on the kind of vehicle or van your power and how ancient it is. Since 2001, the Vehicle Excise Duty and what drivers pay have been decided with the aid of the stage of emissions a car emits. The greater pollution an auto produces into the atmosphere, the greater the charge of road tax will be payable. This is why diesel automobiles are greater high-priced to tax than hybrid ones. The device is designed to motivate motorists to select cleaner fashions to decrease the ordinary degree of damaging emissions our automobiles create. Purely electric-powered cars are free to tax since they produce no emissions.

This year, the largest exchange to road tax is that the approach for measuring degrees of auto emissions has been modified from the New European Driving Cycle checks (NEDC) to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). The WLTP gadget generates extra correct emission stage outcomes than the historical NEDC tests, as well as greater practical gasoline consumption and riding vary readings.

It’s a trade that has been in the pipeline for a while – car checking out has been transitioning from NEDC to WLTP for the reason that 2017 – however 2020 is the first year that road tax has been based totally on WLTP trying out as an alternative than NEDC testing.

 Why is Road Tax increasing?

The new WLTP technique displays higher actual using prerequisites to supply an extra correct illustration of your vehicle’s emissions and gasoline economy. Unfortunately, the NEDC technique of trying out has now come to be old-fashioned and does not furnish a correct interpretation of your vehicle.

How road tax (VED) is calculated 

There’s full information to auto tax on Parkers, as nicely as a vehicle tax recommendation section, however, in a nutshell, the contemporary vehicle avenue tax prices are calculated on CO2 emissions and price, these between 2001 and 2017 are CO2 emissions only, while these older than 2001 have rated primarily based on their engine ability alone.

For new cars, thirteen CO2 tax bands relate to one-of-a-kind emissions ranges and quantities of automobile tax payable. Cars registered from 1 April 2017 are responsible for 12 months First Year Rate (FYR) which is linked to a car’s CO2 emissions.

Pre-March 2001 automobiles are divided into two bands, based totally on engine potential in cubic centimeters (cc). The dividing factor between top and decrease is 1549cc. If you are no longer positive of your car’s engine capacity, you can test it with the use of the Parkers vehicle specs .

Penalty for no road tax 

Driving barring road tax will result in a DVLA-imposed best of £80, which can be decreased via 1/2 if paid in 28 days. However, it should result in a fine of up to £1,000 or 5 instances the annual road tax price if the case goes to court.

Will my road tax be extra steeply-priced in 2022?

The possible reply is yes, in particular, if your automobile has a greater engine. More correct emissions trying out the potential that on common most automobiles will go up as road tax band and end up greater steeply-priced to tax. Petrol or ‘clean’ diesel auto is more cost-effective to tax than a diesel one. Clean diesel automobiles are those that meet the requirements of the RDE2 (Real Driving Emissions) on-road riding test, which additionally complies with the Euro 6d standard.

The 2022 road tax bands above follow new vehicles registered after 1st April 2020. But what about the avenue tax for automobiles registered earlier than this date?

The quantity of road tax you pay in 2022 will rely on when your vehicle was once first registered.

If your automobile was once registered after April 2017 and earlier than April 2020

After your preliminary tax payment, there is a flat fee for road tax for the 2d price onwards, relying on what sort of vehicle you have:

– Petrol and diesel motors – £155 a year

– Alternative fuels – £145 a year

What will the road tax be on my car?

Despite appearances, understanding how an awful lot your vehicle can pay in tax is quite easy – it is all down to when your vehicle was once registered.

The issue to be aware of is that the tax device does no longer alternate retrospectively, if your vehicle prices £30 to tax now, it may not go up to £300 at the subsequent budget, which is a relief. That being said, it might also go up a little in line with inflation that presently sits at two percent. In different words, it may also go up a few kilos each year, however truly now not utilizing heaps of pounds.

2021-2022 budget, up to date on 21 April 2021

On the 1st of April every year, the chancellor publicizes new street tax quotes – some of these will be important and have an effect on the vehicles that are constructed that year, others will be a greater minor adjustment designed to convey an older tax machine in line with inflation.

Keep your road tax charges down with a used car

As is the case each year, the largest road tax hikes in 2020 are on new cars. So, if you are in the market for a new set of wheels, you can keep away from massive vehicle tax prices by opting for a used automobile instead. 

The minute you recognize what you pay for your vehicle each year, the Chancellor comes alongside and adjusts it. There’s no clear way to get affordable road tax either, excessive polluting older vehicles can be affordable to tax whilst more recent vehicles that produce much less CO2 value more.

 The rate you pay to tax your car can be determined with the aid of the usage of any volume of nuances – its engine size, the year it used to be built, your circumstances… then the factor is that a variety of tax buildings are on foot parallel to each extraordinary and it is accessible to see why you favor being a genius to get your head around things.


A guide to the MOT Test
A guide to the MOT Test
If you own and use a vehicle on the road it is your responsibility to ensure this vehicle is maintained and kept in a condition that deems it roadworthy at all times.
2021 Guide to ULEZ and Clean air zones emission standards
2021 Guide to ULEZ and Clean air zones emission standards
Everything you need to know about ULEZ and Clean air zone. Is your vehicle compliant? Do you have an older vehicle that may need to be replaced?
What is an car insurance write-off? Guide to CAT A, B, C, D, N
What is an car insurance write-off? Guide to CAT A, B, C, D, N
In this guide we will explain everything you need to know about written off cars