UK Car Tax In Detail
There are almost 30.9 million cars registered by users in the UK, all of which are subject to government regulations which include insurance, MOT and tax.
Car tax, also known as Vehicle Excise Duty, was introduced in 1937 and is a legal requirement for all vehicle owners. How much tax you pay depends on the vehicle you are driving and, this is calculated by the size of the engine (under 1549cc and over 1549cc) for vehicles registered before 1st March 2001. For newer vehicles, this becomes a little more complicated due to new legislation on CO2 emissions which states that less tax is paid on energy efficient vehicles such as hybrids and those running on LPG. See the UK Government site for a guide to the different charges HERE.
Vehicles Registered before 1st March 2001
| PLG Tax Class 11 | 12 months | Six months |
| Not over 1549cc | £145 | £79.75 |
| Over 1549cc | £235 | £129.25 |
Vehicles registered after April 2017
| VED band | CO2 emissions | Annual rate | First year rate |
| A | Up to 100g/km | £0 | £0 |
| B | 101-110g/km | £20 | £0 |
| C | 111-120g/km | £30 | £0 |
| D | 121-130g/km | £110 | £0 |
| E | 131-140g/km | £130 | £130 |
| F | 141-150g/km | £145 | £145 |
| G | 151-165g/km | £185 | £185 |
| H | 166-175g/km | £210 | £300 |
| I | 176-185g/km | £230 | £355 |
| J | 186-200g/km | £270 | £500 |
| K | 201-225g/km | £295 | £650 |
| L | 226-255g/km | £500 | £885 |
| M | Over 255g/km | £515 | £1,120 |
| CO2 emissions (g/km) | First year rate | Standard rate* |
| £0 | £0 | |
| 1 – 50 | £10 | £140 |
| 51 – 75 | £25 | £140 |
| 76 – 90 | £100 | £140 |
| 91 – 100 | £120 | £140 |
| 101 – 110 | £140 | £140 |
| 111 – 130 | £160 | £140 |
| 131 – 150 | £200 | £140 |
| 151 – 170 | £500 | £140 |
| 171 – 190 | £800 | £140 |
| 191 – 225 | £1200 | £140 |
| 226 – 255 | £1700 | £140 |
| Over 255 | £2000 | £140 |
Vehicle tax is regulated by the DVLA (Driver and Vehicle Licensing Agency) which maintains a database of every vehicle and driver in the country. In the past, drivers were required to display a paper disc on the windscreen of the car, however, these days, police and DVLA authorities use Automatic Number Plate Recognition (ANPR) camera technology in order to monitor vehicles.
How do I tax my vehicle?
DVLA Vehicle Tax usually runs for a period of 12 months starting from the day that you take ownership of the vehicle and, can be purchased or renewed either online, by telephone or by visiting a good old fashioned Post Office (you may need to check that your local Post Office offers this service). In general, paying your car tax online tends to be the quickest and simplest option. To renew your road tax online, visit https://www.gov.uk/vehicle-tax
It is possible to pay road tax by Direct Debit, however, this does work out to be a more expensive option.
Running a car without tax is an offence – and one which is subject to hefty fines. If you’re late in making payment on your tax, you’ll receive a reminder and an automatic £80 fine which may be reduced to £40 with immediate payment. If you continue to evade payment of car tax, you may be taken to court and issued with a fine of up to £1000 (rising to £2500 if the car is used or stored on a public road).
For more information on government tax regulations, or to calculate the tax on your vehicle visit https://www.gov.uk/calculate-vehicle-tax-rates