We’ve got everything you need to know about the new road tax rules that will be coming into force on 1st April, and how you might be affected.
How will cars be taxed?
This year we will see a radical change in the system used for taxing cars here in the UK. The new legislation will be in place from 1 April 2017, and will affect all new cars purchased after that date. While the current road tax bands are based on the emissions of each vehicle and so those car owners with lower than average emissions are rewarded with lower rates. Under the new rules, vehicles will be taxed based on emissions for the first year only, after which they will be taxed at a standard rate depending on the type of vehicle. Only cars with no emissions (e.g. electric vehicles) will be exempt from paying road tax.
Will the tax on my current car change?
Current road tax bands won’t change for cars that are already registered, so the existing VED bands will remain in place – meaning cars registered before April 2017 will continue to pay the current VED rates even after the new VED bands come into force. Fortunately for owners, the existing rates for CO2 bands are much more favourable to lower-polluting vehicles.
New online road tax
Although it’s no longer a requirement to display a tax disc in your windscreen, this doesn’t mean you don’t have to pay car tax. The DVLA will send you a reminder when your road tax is up for renewal in the time-honoured fashion, and you can continue to pay your road tax online, over the phone or at the Post Office. There’s also the option of paying your car tax monthly. This new monthly option arrives in tandem with the facility to pay your road tax by Direct Debit.
The key advantage of paying your car tax by Direct Debit is that the DVLA will continue taking the payments until you tell them to stop. It means that although you’ll no longer have an expiry date on the disc stuck to your windscreen, you’ll no longer need to remember it anyway. Your tax will be renewed automatically, and you can get on with more exciting stuff – like remembering your MOT.