February 20, 2017 at 2:24 PM
In 2017, certain changes are being introduced to the way in which vehicle road tax is calculated and applied. The main way in which the new VED (Vehicle Excise Duty) will affect you is by potentially changing your car road tax band. However, that is not the only way in which the system has changed.
An overall increase in tax demands
As a result of the new VED coming into force in 2017, almost all drivers will find that they need to pay more tax. After a certain transition period, all drivers will end up having to pay an annual flat rate of £140. If you are worried about paying an increased fee this time around, do not worry. If your car was registered to you prior to April 1st, 2017, the 'old' VED rates will apply.
Tightening up the exemptions
In the past, if you drove a low emission vehicle or a diesel car, you were tax exempt. Now, however, fewer cars are going to be tax exempt. Specifically, only cars that have no tailpipe emissions will be able to enjoy tax exempt status.
Supplements for expensive cars
If your car cost more than £40, 000, under the new VED rules you will also now become subject to a 5-year supplement. This supplement is £310 for every five years.
Changes in tax bands
One of the most seismic shifts to be caused by the new VED regulations is a total overhaul of car tax bands. In general, all drivers will have to pay more under the new VED regulations, and those who are set to be hit hardest are (unfortunately) drivers of smaller, more 'economical' cars. In fact, if you drive a small, cheap car you could end up paying nine times more under the newly introduced VED regulations than you do currently.
Make sure that you are prepared for the new regulations
There is still time to register your vehicle so that you are not hit by the full force of the new VED regulations. It is important to do so as soon as possible, however. And, if you had been thinking for a while about purchasing a vehicle with no tailpipe emissions, the new regulations could well provide you with the exact motivation you need.