Millions of Drivers Eligible for £150 in Car Tax Reductions Amid VED Hikes

Strategic Insights -

Millions of motorists are facing significant financial shocks as Vehicle Excise Duty (VED) rates have increased on April 1, with some drivers facing hikes of up to £150 or more in a year. The AA has cautioned that these changes will have a major impact on the finances of millions of car owners. Drivers can use an online tool to check their eligibility for the £150 car tax reduction, which is available to those with vehicles registered between 2001 and 2017.

Key Takeaways:

  • Over 58% of UK drivers are subject to the older vehicle VED scheme based on CO2 emissions.
  • Drivers with ageing low-CO2 small family and city cars may see a hike of £150 or more a year in their motoring tax.
  • The average car pays £436.84 in fuel duty a year, or £524.21 with VAT, making a £150 increase in VED a 34% hike or 29% with VAT.
  • New petrol, diesel, and electric models registered after 2017 will see a rise in VED prices, with standard fees increasing from £190 to £195.
  • Vehicles registered between 1985 and 2001 will face an increase of up to £20 in VED charges, determined by engine size.
  • The online number plate checker provides information on tax status, tax due date, and MOT history, ensuring drivers don't risk forgetting to renew their car tax.
  • The tool is free and quick to use, making it easy for drivers to determine their eligibility for the £150 car tax reduction.

Statistics:

  • 58% of UK drivers are subject to the older vehicle VED scheme based on CO2 emissions (UK Government figures).
  • £436.84 is the average car fuel duty a year, or £524.21 with VAT (Express reports).
  • £150 increase in VED would represent a 34% hike or 29% with VAT on top of fuel duty (AA reports).
  • £190 is the standard fee for new petrol, diesel, and electric models registered before 2017, increasing to £195 (DVLA).
  • Up to £20 increase in VED charges for vehicles registered between 1985 and 2001, determined by engine size (DVLA).

Sources:

  • Express
  • DVLA
  • AA
  • WeBuyAnyCar