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Liverpool Echo
Liverpool Echo
World
Jaymelouise Hudspith & Gemma Jones

DVLA urges drivers to pay car tax before new rates in April

The Driver and Vehicle Licensing Agency (DVLA) have issued a reminder for drivers to pay their car tax before changes come into place in April.

A new tax system will be introduced soon, and the DVLA have said that people could end up paying more if they do not pay their tax before the changes come into effect, reported North Wales Live.

Car tax is set to increase as the Vehicle Excise Duty (VED) is set to match inflation levels, and petrol or diesel vehicle owners will be hit with higher taxes to match the UK Government's Net Zero target.

READ MORE: Little known rule every drive thru user should know to avoid fine

Posting on their official Facebook and Twitter pages, the DVLA wrote: "Untaxed vehicles are hard to hide, easy to tax.

"Remember to always tax your vehicle on time."

The social media posts were followed up with the hashtags: "Tax it don’t risk it" and "Tax it or lose it".

Drivers can tax their car, motorcycle or other vehicles online through the DVLA website using a reference number from the vehicle logbook (V5C), the green "new keeper" slip from a new car.

People who have received a recent reminder (V11) or "last chance" warning letter from the DVLA can also use the reference number provided.

Motorists must tax their vehicles even if they don't have to pay anything, including those with exemptions.

The DVLA also urges drivers to ensure they meet all the legal obligations before they tax their vehicles and use the roads.

This includes having the correct licence, meeting minimum eyesight rules, and having their vehicle registered, taxed and with a current MOT certificate.

In April, Vehicle Excise Duty (VED) is set to rise in line with inflation and will see the cost of owning a petrol or diesel vehicle rise.

As inflation hit 5.5 per cent in January, experts are predicting it could rise to as high as eight per cent by April.

The amount of VED, or car tax, a driver pays will depend on how old the car is and how environmentally friendly it is.

Electric vehicles will continue to pay nothing in VED for the first year, while all other car tax bands will increase.

Some other cars are exempt from paying car tax including classic vehicles older than 40 years old as well as drivers with disabilities.

Vehicles producing over 255g of CO2 emissions will see their first-year rate rise from £2,245 to £2,365.

Those with vehicles that produce very few emissions will see no change or a very small increase in costs.

The smallest increase is for vehicles that release between 76 and 90g of CO2 where drivers will see a first-year rate of £120, up from £115.

Benefit in Kind (BiK) rates are also set to rise by one per cent from April 2022.

As a result of this, electric cars and other vehicles producing under 50g of CO2 per kilometre, will now pay two per cent BiK instead of one per cent.

All other vehicles will pay one per cent more, regardless of their CO2 levels.

One exception is for vehicles that produce over 156g per km, with BiK rates remaining at 37 per cent.

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