Car tax prices have increased by up to £15 on renewals since 1 April 2019 when new legislation came in to effect to boost total costs. The new rules have seen the total charges split into different categories based on when the vehicle was registered to provide different bills for certain drivers.
READ MORE
-
How to appeal a DVLA car insurance or car tax fine today
Cars which entered service before 31 March 2017 have seen price rises of up to £15 on their annual charges.
The increase will see owners of some highly polluting vehicles paying a massive £570 per year for their road tax compared to 2018’s total charge of £555.
This differs from cars registered after 31 March 2017 who will see just a £5 increase on costs from £140 to £145.
The new price strategies affected owners of older vehicles hard as these machines will have higher pollution rates than many newer models.
Diesel vehicles are the worst affected by recent legislation changes after the introduction of the new Real Driving Emissions 2 standard from 1 April 2018.
The new legislation means those failing to meet the requirements have faced even higher fines.
The rising bills mean some diesel owners will pay over £500 more than those with a petrol vehicle in first-year charges.
The Rates of Vehicle tax report shows diesel cars which produce between 191-225 g/km of pollution will pay a charge of £1,815 in the first year compared to £1,280 for a petrol counterpart.
DON’T MISS
Weather warning: Britons urged to check car before leaving home [WEATHER]
These are the most unreliable used cars for sale [ADVICE]
People from here least likely to check the history of a used car [TIPS]
Diesel cars with pollution between 171 and 190 g/km will pay £400 more in the first year compared to petrol cars with the same level of pollution.
This falls to just over £300 when pollution is raised to the second-highest reading between 226 and 255 g/km.
The highest polluting vehicles are now billed over £2,000 in the first year of owning a vehicle in a crackdown on highly polluting vehicles.
DVLA’s whopping £2,135 price tag is the same value for both diesel and petrol cars in the only reading where the two fuel types identically match.
READ MORE
- Your car insurance could be invalidated if you forget MOT or tax
Data from the AA shows standard charges for highly-polluting vehicles have rocketed by £65 since 2015/16 in a dramatic rise.
Formerly hybrid and low-emission vehicles were exempt from paying any car tax in an incentive for people to buy the eco-friendly vehicles.
The new rules mean only fully-electric models which do not emit any carbon dioxide and cost less than £40,000 to purchase are exempt from paying car tax charges.
Vehicles priced over £40,000 are subject to an added £310 charge for the five subsequent years after a car was registered.
However, this is taken from a models official price and does not always line up with the bill a motorist may have paid if a vehicle was discounted.
How to save money on car tax
Motorists can save money on car tax by going electric and purchasing a vehicle which is fully EV.
Electric vehicles with zero-pollution priced under £40,000 are now the only type of cars which do not need to pay any road tax charges whatsoever.
Electric car owners can also benefit from not needing to pay the pricey London congestion bills such as the new Ultra Low Emissions Zone.
However, a lack of infrastructure and charging stations and concerns a car would run out of batteries easily are reasons many motorists have refused to snap up the latest vehicles.
Money Saving Expert reveals motorists can save even more money on car tax costs by paying for their bills upfront instead of across instalments.
Policies can be taken in monthly instalments or paid in two lump sums instead of in one go although experts warn this will usually add a five percent surcharge onto the total costs.
Source: Read Full Article