Motorists could face whopping costs of £4,850 under car tax charges under the new bands, which are set to come into effect later this year.
Drivers are being warned they could face bills of thousands under planned new laws set to be introduced by Labour. Motorists could face whopping costs of £4,850 under new car tax bands, which are set to come into effect later this year, depending on what car you drive.
The updated Vehicle Excise Duty (VED) rates will begin later this year for all cars, drivers and road users. The new £4,850 charges are set to be applied to vehicles emitting between 226 and 255g/km of CO2 and will only affect those cars which were registered after April 2017.
The Vehicle Excise Duty (VED) – commonly referred to as car tax or road tax – as essentially a levy for using a vehicle on public roads in the UK. The price hike was confirmed b the UK Government and it is set to finally be put into action in the coming months after Labour Chancellor Rachel Reeves confirmed the rate increases during the Autumn Statement back in November.
The DVLA currently collects approximately £5 billion in VED annually, though not all of this revenue is directed towards road improvements and infrastructure.
Instead VED is grouped together with other forms of taxation, meaning the income generated from road tax is just as likely to be allocated to education or healthcare as it is to roads.
The RAC explained: “DVLA consigned the tax disc to the history books, which means motorists are not required to display a paper disc in the windscreen.
“Instead, VED is handled by an electronic database, as the government continues to digitise public services.
“Today, the police and other law enforcement agencies use a network of Automatic Number Plate Recognition (ANPR) cameras. These cameras might be situated at the roadside, or located in a police vehicle.
“The ANPR system exchanges data with the DVLA database which keeps a record of all taxed and untaxed vehicles.”
The guidance continued: “If you own a vehicle, you will automatically receive a reminder before the tax is due to expire, which is always at the end of a given month.
“In other words, if your vehicle is taxed for 12 months from 1 January, you’ll need to renew before the end of December.
“You can tax a car for six or 12 months. You’re also liable for road tax as soon as you take ownership of a car, although if you’re buying an efficient new vehicle, this might cost less than you think. In fact, buy wisely and you might pay nothing at all.”