Drivers who still need to renew their car tax will be faced with the increased vehicle excise duty costs after new prices were launched in April. To confuse things, cars are divided into two groups based on their date of registration, with vehicles split between whether they hit the roads before or after 31 March 2017. Cost rises are therefore different compared to which type of vehicle or fuel you are running, leaving some drivers confused as to what prices they should be paying. The increase in costs will be used to fund the Government’s promised £30 billion worth of road improvements.
Old Vehicles
Highly polluting vehicles built before 31 March 2017 will see rises of either £10 or £15 in 2019.
Petrol and diesel cars with the highest pollution could now be paying rates of up to £570 a year for their road tax compared to last year’s sum of £555.
Vehicles built post 31 March 2017
Vehicles built after the cut off date will also see increases, with petrol and diesel drivers also set for hikes on their annual costs.
Prices from year two and beyond have increased by £5 since last year, with the price tag now standing at £145 a year compared to last year’s £140.
New cars
Owners of brand new vehicles are also in the firing line and are set for the biggest increase in tax costs this year.
New vehicle costs have rose by £65 for the highest polluting vehicles which can now can now be charged up to £2,000 for the first year based on their CO2 output.
Electric cars
Electric cars under £40,000 are completely exempt from paying any road tax and are the perfect option for those on a budget.
These cars are also free from paying London ULEZ prices and make EV’s a good choice for commuters or those regularly travelling into the capital.
But drivers are reminded they must still apply for tax exemption every year to avoid being billed.
Diesel cars
Drivers of diesel vehicles are worse affected than their petrol counterparts and need to pay added costs due to higher emissions.
The new Real Driving Emissions 2 standard applies to new cars registered after 1 April 2018 and those failing to meet the strict requirements have faced heavy fines.
Some owners were charged almost £500 more in road tax for their first year as they were pushed into a higher tax band.
Westminster City Council launched a new diesel surcharge cost in August which will see additional parking fees of up to £2.45 per hour
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