Car tax to rise from April in bad news for drivers - how much more you will pay

16 March 2023 , 09:34

427     0

Car tax is rising from next month (Image: Getty Images/iStockphoto)

Drivers will pay more for car tax from next month - with rates for vans and motorbikes also increasing.

Vehicle Excise Duty (also known as car tax) will increase in line with Retail Price Index (RPI) inflation of 10.1% from April 1.

VED rates for lorry drivers will be frozen from the same date.

Car tax must be paid on all vehicles registered in the UK. You can choose to pay for 12 months upfront, every six months, or monthly.

How much car tax you pay depends on when your car was registered and how much carbon dioxide emissions it produces.

'UK's most neglected street with post-apocalyptic scenes like The Last of Us'

As an example, the car tax rate for a vehicle registered from March 2001 and before April 2017 that produces 121 to 130g/km of carbon dioxide (CO2) emissions would be £135 for the year.

There are different rates for cars registered after April 2017. You can check how much car tax you pay on your vehicle on Gov.uk.

Some vehicles are charged £0 for car tax - but even if you don’t need to pay anything, you’ll still need to renew your vehicle every year with the DVLA.

The types of cars that don’t cost anything to be taxed include brand new vehicles that produce zero grams of CO2 emissions and have a price of less than £40,000.

For cars registered between March 2001 and before April 1, you’ll pay £0 for car tax if your vehicle produces up to 100 grams of CO2 per kilometre driven.

In better news for drivers, Chancellor Jeremy Hunt yesterday confirmed he will continue a freeze on fuel duty for the thirteenth year running.

The 5p-a-litre cut in fuel duty will also remain in place for the next year - meaning drivers won't face an increase at the pumps.

Fuel duty included in the price you pay for petrol, diesel and other fuels.

The current rate for both petrol and diesel is 52.95p-a-litre and this rate has been frozen since 2011.

Government figures show the average cost of a litre of petrol and diesel at UK forecourts is around £1.47 and £1.67 respectively.

'World's first' driverless bus service will start on 14-mile route in UK city

The Government says the support will cost £10billion.

Levi Winchester