United Kingdom (Commonwealth Union)_Drivers of older vehicles will be slapped with higher car tax charges this April with rates set to rise for most motorists and drivers.
Millions of drivers in the UK will be hit with another car tax increase from April 2024, particularly affecting owners of older vehicles.
HMRC has confirmed previously, the new Vehicle Excise Duty (VED) charges will be based on Retail Price Index (RPI) inflation from the spring. VED is based on the age of your car, the type of fuel is uses, CO2 emissions and list price, to determine how much tax you need to pay.
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There is a first-year rate for new cars, followed by a flat annual rate that is applied from the second year onwards. Motoring journalist Pete Barden said this means fees will likely rise by less than 6%.
He warned that cars and vans registered before March 2001 could see their yearly costs rise from £200 to £210 if they have an engine size of 1549cc and under. The bigger shock is for vehicles with engines larger than 1549cc, with their annual charges predicted to jump from £325 to £345. This comes only a year after car taxes experienced a £20 surge from £180 to £200 between the years 2022-23 to 2023-24.
HMRC said that increasing VED rates by RPI in tax year 2024 to 2025 will ensure that VED receipts are maintained in real terms and that motorists make a fair contribution to the public finances. The Government will uprate VED rates for cars, motorcycles and vans in line with RPI from 1st April 2024 in the Autumn Finance Bill 2023. VED for HGVs and the HGV levy will both remain at 2023-24 rates for 2024-25 to support the haulage sector.
You can pay for your car tax monthly, once every six months, or in a single annual payment.
