21 February 2024 , 14:54
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Petrol and diesel car owners could be hit with new car tax changes in just a few week's time.
Some drivers might have to pay hundreds of pounds more because the Vehicle Excise Duty (VED) increases in line with the Retail Price Index from April 1, 2024. Even though HM Revenue and Customs (HMRC) said rates "will remain unchanged in real terms", it said the scheme will "impact" vehicle owners. VED rates are mostly based on how much pollution a car makes, so those with dirtier petrol and diesel models will be most affected.
Everyone who owns a petrol, diesel or hybrid vehicle will have to pay more under the new VED rate rises this spring. But, motorists with a fully electric vehicle are still exempt from paying VED fees. Although there are plans to change this from April 2025. The cost of bills depends on the age of a vehicle and how much it pollutes the environment.
Cars registered on or after April 1, 2017, will pay £10 more with standard rates rising from £180 to £190. However, owners who bought brand new cars worth over £40,000 in the last five years will also face an Expensive Car Supplement. This will add an extra £410 to their bill from April, up from £390 over the financial year. Those who have bought brand-new cars in the past 12 months will be hit hardest by these changes, reports the Daily Star.
First-year tax rates for cars emitting more than 255 g/km will pay £140 more, 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.
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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, while those below 1549cc will be charged just £10 more.