08 Mar 2022

New UK laws coming in April on car tax, in sweeping changes

VED rates are going up meaning a rise in car tax from April 2022 

From April 2022, Vehicle Excise Duty (aka car tax ) will rise in line with the Retail Prices Index measure of inflation from April 2022. However, how much the cost will rise by will depend upon your vehicle's emissions. For instance, if your car emits no CO2, your car tax will remain at 0.

If your car's CO2 emissions are between 1 and 50g per km, your standard rate of car tax will increase from £155 to £165, but your first year rate will still be £10. The amount you pay also depends on how often you want to make a payment. There's a five per cent surcharge if you pay monthly or every six months.

The Driver and Vehicle Licensing Agency (DVLA) runs computer tests every month to check whether the owners of cars registered in the UK have paid tax. If the system flags up an untaxed vehicle that is not declared SORN (not on the road), the DVLA will send a fine of £80 to the owner. If this is paid within 28 days, a 50 per cent discount should be applied.