Car tax changes: When is my car tax due? All changes you’ll see in your bill this year

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The increase in Vehicle Excise Duty – also known as car tax – will come into force from April 2022. Chancellor Rishi Sunak said in his Autumn Budget that VED would increase in line with the Retail Price Index which is typically used as a measure of inflation.

It means motorists will be paying more for owning their vehicle

You are required to pay VED unless your car is registered as off-road – also known as a SORN declaration.

Vehicle excise duty is calculated using the vehicle’s age and CO2 emissions.

Bigger, older engines tend to produce more CO2, and so you pay more tax on them.

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How do I know when my car tax is due?

Car tax is paid annually – and the DVLA will send you a reminder of when your payment is due three weeks in advance of the date.

Paying is easy – you do it via the GOV.UK website, and you can choose to pay in full or in installments.

You can also check your tax date anytime using the GOV.UK checker – just enter your licence plate number.

What is VED?

VED is made up of two payments: standard rate and first-year rate, and depends on how much CO2 your car produces.

The more emissions your car produces, the more expensive the duty on your car will be.

The standard rate is a flat rate for all vehicles, and the latter is based on the CO2 figures when the vehicle was built.

Vehicles that don’t use just petrol or diesel, including hybrids and bioethanol vehicles, currently pay £155 per year.

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How much will I be paying?

For those with vehicles that have zero CO2 emissions, your VED will remain at 0.

For all other vehicles, the standard rate of VED will rise from £155 to £165 from April.

The new first-year rates for each CO2 emissions in brackets are:

  • 1 to 50 – £10 – no change
  • 51 to 75 – £25 – no change
  • 76 to 90 – £120 – up from £115
  • 91 to 100 – £150 – up from £140
  • 101 to 110 – £170 – up from £160
  • 111 to 130 – £190 – up from £180
  • 131 to 150 – £230 – up from £220
  • 151 to 170 – £580 – up from £550
  • 171 to 190 – £945 – up from £895
  • 191 to 225 – £1420 – up from £1,345
  • 226 to 255 – £2015 – up from £1,910
  • Over 255 – £2365 – up from £2,245

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