Martin Lewis gives money-saving advice on VED car tax
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Experts at Heycar warn new Vehicle Exclude Duty (VED) rates will be confirmed at the Chancellor’s Spring Budget. They warn the changes could be “major” for many petrol and diesel road users who could see fees dramatically rise.
Heycar said: “On 23 March 2022, the Chancellor will announce new road tax rates as part of the Spring Budget.
“Some of these will be major and affect the cars that are built that year, others will be a more minor adjustment designed to bring an older tax system in line with inflation.
“We got a bit of both in 2021.
“A highlight – or lowlight depending on your perspective – was the three percent increase on the standard rate of tax which means that the tax you pay after year one has increased from £150 to £155.”
HM Revenue and Customs have already published a policy paper warning drivers of changes to VED rates,
They warn this will “uprate the VED rates for cars, vans, motorcycles and motorcycle trade licences”.
Prices will increase in line with the Retail Price Index (RPI) and is simply a “standard uprating”.
HMRC warns increasing VED rates “will ensure VED receipts are maintained in real terms”.
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HMRC warns increasing VED rates “will ensure VED receipts are maintained in real terms”.
It will also ensure motorists continue to make a “fair contribution to the public finances”.
Despite the announcement in March, HMRC warns the new prices will come into effect until April 1.
However, the measure is “not expected” to have any significant economic impacts.
HMRC adds: “This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence.
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