A Guide To Car Road Tax

Car road tax, also known as Vehicle Excise Duty (VED) is based on the CO2 emissions produced by your vehicle alongside a number of factors.

In our guide to car road tax, we’ll help explain the intricacies of VED and how it applies to you (and what you can expect to pay on your vehicle).

Paying Vehicle Excise Duty (VED) is a legal requirement for all UK vehicles. Technically, there is actually no such thing as ‘road tax’, VED is tax for owning a vehicle and driving it in the UK. The only way you can be excluded from paying it is by declaring your vehicle as SORN and keeping it off the road. For most cars, it is an annual payment you make to the government to drive on UK roads. The revenue generated by this cost helps the UK government to maintain and improve the country’s road infrastructure as well as upgrading road surfaces and reducing congestion.

Car road tax can hugely vary between vehicles but there are a few factors at play before we get into the different car tax bands.

The main two factors that determine the VED you pay are:

• CO2 emissions: For cars registered after March 2001 and before April 2017, VED rates are usually determined by the amount of CO2 emissions a car produces. Typically, the lower the emissions, the lower the tax. This doesn’t tend to change much between diesel or petrol vehicles.
• Fuel type: Cars that run on alternative fuels (like electric or hybrid vehicles) may have different rates compared to petrol and diesel cars.

Other factors can include:

Car price: Vehicles with a list price over £40,000 must pay an extra premium tax of £410 tax for five years. However, you do not have to pay this if you have a zero-emission vehicle.

Engine size: For older cars (registered before 2001), tax is based on the engine size.

Electric vehicles: Electric vehicles are currently exempt from paying car road tax due to their zero emissions.

Over the years, the UK Government has adapted how it levies VED, as CO2 emissions in newer vehicles has reduced.

For cars registered after April 2017, car tax is calculated using CO2 emissions for the first year, followed by a flat standard rate from the second year onwards.

You’ll pay a VED rate based on a vehicle’s CO2 emissions the first time it’s registered.

You have to pay a higher rate for diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.

Source: https://www.gov.uk/vehicle-tax-rate-tables

Alternative fuel vehicles include hybrids, bioethanol and liquid petroleum gas.

Source: https://www.gov.uk/vehicle-tax-rate-tables

Cars registered in this time have their VED reviewed based on their CO2 emissions and fuel type. This is broken down into 13 categories as follows:

Source: https://www.gov.uk/vehicle-tax-rate-tables/rates-for-cars-registered-on-or-after-1-march-2001

CO2 emission details are shown on the car’s V5C registration certificate, or you can find emission details online.

You can check whether your car is taxed by using the free vehicle tax checker on the government website.

You’re able to tax a car for six or twelve months. When your car tax is due to expire you will receive a tax reminder letter, also known as a V11.

You can pay for your vehicle tax either by credit or debit card, or by setting up a direct debit on the Government website.

As paying for your car tax is a legal requirement for motorists, the police and supporting enforcement agencies use a network of Automatic Number Plate Recognition (ANPR) cameras. If your vehicle registration number is scanned and you haven’t paid for your vehicle tax, then you will be fined £80. If you do not pay the fine then there is a chance your vehicle could be clamped, crushed or your details are passed onto a debt collection agency.

Under current regulations, owning an EV exempts you from paying VED as your vehicle doesn’t produce any CO2 emissions.

However, this is all set to change in 2025 as new electric vehicles will have to pay for car road tax for the first time from 1^st April.

Yes, there are times where a vehicle would be exempt from paying VED. These are:

• Vehicles used by a disabled person
• Passenger vehicles that transport disabled people (except ambulances)
• Vehicles manufactured before 1984
• Mobility vehicles that have a max speed of 8mph
• Electric vehicles (until 1^st April 2025)
• Sit-on lawn mowers
• Steam vehicles – these do not produce CO2 emissions
• Vehicles used for agricultural purposes such as tractors
• If you’ve registered your vehicle under Statutory Off-Road Notification (SORN) you will receive a refund for the remaining vehicle tax you’ve You must keep your vehicle off the road if you’ve registered it as SORN.

If you’re looking for further information on car maintenance, make sure to head to our blog for all the latest news and advice for keeping your pride and joy feel like brand new!