Drivers in the UK are going to feel the effects of new changes to DVLA car tax rules – costing potentially hundreds more pounds annually.
The Vehicle Excise Duty — known to us as road tax — is going to alter in April and for some motorists the increase in annual charges will be significant.
In 2015 George Osborne claimed that new proposals were to reflect the introduction of more advanced emissions technology in newer cars.
So what will be the effects for drivers?
The new tax model will impact any consumers purchasing a car after April 1st.
Electric and Hydrogen cars will not be affected, but duties on some heavy emission models will rise significantly.
Those that bought certain low emission cars will be especially out of pocket as previously cars emitting 99g/km were exempt from road tax for life – however post April 1st drivers will be asked to pay £120 in year one and £140 every year after.
From the lowest emitting cars, to those that release the most, every vehicle will be affected – the most significant being cars emitting over 255g/km.
What is the best way to save?
There seems a way round the cost hikes in some cases. If you’re planning a new car purchase this year, it would be a good idea to keep April 1st in your mind so you can take advantage of the new system and purchase an appropriate vehicle – or make use of the old system while you still can.
Those planning to purchase a low emission car should do so before April 1st – but if planning a purchase after that date then not going for a brand new option (but nearly new instead) would mean that tax would still fall under the old system.
For drivers that purchase a heavy emission vehicle, although prices will rise significantly initially, this is expected to even out after four years. The reason being that, the first year of new tax charges will be higher – decreasing over the years that follow.
Why is the change happening?
The proposals show the ways in which improvements in technology have cut CO2 emissions. Under the existing system cars emitting under 120g/km are exempt from tax — but that is now true for approximately 75% of all new vehicles.
If you want to totally avoid costs now, electric or hydrogen cars are the way to go.
Photo credit: Herry Lawford