Motorists are being urged to renew their car tax as soon as possible or they could be slapped with fines, even if they don’t need to pay any money.
With the new financial year less than four months away, drivers are being urged to ensure they are prepared for new changes to Vehicle Excise Duty (VED).
From April, the Government will uprate the VED rate for cars, motorcycles and vans by the Retail Price Index (RPI). This excludes the first year rate for cars.
Ahead of these changes, the Driver and Vehicle Licensing Agency (DVLA) has called on motorists around the UK to ensure they are up to date with their tax information.
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The DVLA has warned drivers that they need to tax their vehicles even if they don’t need to pay
GETTY/X
Taking to social media site X, formerly known as Twitter, the DVLA’s official account said that drivers can tax their vehicles using GOV.UK, along with the hashtag “#TaxItDontRiskIt”.
It added: “You must tax your vehicle, even if you don’t have to pay anything.”
Certain vehicles are exempt from paying car tax, but they must be registered with the DVLA as being taxed, even if they are not charged.
Any vehicle made before January 1, 1984, is exempt. If someone does not know how old their classic car is, but it was registered before January 8, 1984, they do not need to pay vehicle tax.
Drivers must apply for a vehicle tax exemption to stop paying. They can also be fined up to £2,500 and get three points on their licence if the vehicle is in a dangerous condition.
Disabled drivers can also apply to have their vehicle exempt from car tax, although this can only apply to one vehicle at a time, with drivers needing to choose if they have multiple cars.
People can apply for a vehicle tax exemption if they receive the:
- Higher rate mobility component of Disability Living Allowance (DLA)
- Enhanced rate mobility component of Personal Independence Payment (PIP)
- Enhanced rate mobility component of Adult Disability Payment (ADP)
- Higher rate mobility component of Child Disability Payment
- War Pensioners’ Mobility Supplement
- Armed Forces Independence Payment
Until April 1, 2025, electric vehicles are exempt, but after this date, drivers will need to pay. This was announced by former Chancellor Jeremy Hunt in 2022 as he called for the system of taxation to be fairer for all motorists.
The new car tax measures will apply to all zero emission vehicles, including battery electric and hydrogen fuel cell.
From April, drivers buying new cars will also be required to pay more for their VED costs when the Government hikes first year rates for new cars.
Chancellor Rachel Reeves said she was doing this to “widen the differentials between zero emission, hybrid and internal combustion engine (ICE) cars”.
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Classic cars do not need to pay VED if they are older than 40 years of age
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While zero emission cars will pay just £10 until 2029-30, rates for cars emitting between one and 50g of CO2 per kilometre, including hybrids, will increase to £110. Costs will also increase to £130 for cars emitting between 51 and 75g/km.
All other rates for cars emitting 76 g/km of CO2 and above will double from their current level for 2025-26. This could see many drivers of the most polluting new cars pay thousands of pounds more than they would do now.
