Car Tax in the UK was given a massive shake-up last year and it seems that the rules will be changing again next month.
In April 2017, it was announced that some drivers could end up paying out hundreds, or even thousands, of pounds more in VED whereas conversely, others could end up saving a packet by choosing the right time to purchase their next car.
From 1 April 2018 the first-year VED tax rate for new diesel cars will go up by one band. In addition, the company car tax levied on diesel cars will increase from 3% to 4%.
New cars are still divided into 13 CO2 bands, which determine how much you pay in the first year of ownership. However, only zero-emission vehicles, such as electric cars, now qualify for the lowest band and are therefore tax-free.
Who Will Be Affected By The New Rules?
These new rules only apply to cars, and not vans or commercial vehicles. Also, the extra cost is only payable for models that don’t meet the latest Euro 6 emissions standards when tested on the RDE new real-world emissions regime.
However, at present, no new diesels conform to the RDE standards, meaning the extra fee will apply to all new diesels sold from April 2018 onwards.
April 2018 Changes
From 1 April 2018, there will be another revision of road tax rates. The 2017 Autumn Budget revealed that the Treasury will introduce a new tier of taxation for new diesel cars that don’t meet the latest Euro 6 emissions legislation.
HM Treasury claims that this will affect around 2 million new cars.
These changes were designed to penalise cars that pollute more, but it’s worth remembering that the extra tax will be included as part of the on-the-road cost of buying a new car. Once you’re past the first 12 months, then these models will face the same annual fee as cleaner models.
Are Drivers In The Dark?
According to a recent survey, the vast majority of drivers don’t understand the new diesel tax results that will be introduced in April this year.
Of 2,000 people polled, 87% admitted they didn’t understand the forthcoming rules, which will see new diesel cars bought from April shift up one band for Vehicle Excise Duty (VED) – for their first year on the road.
Read more on this survey – Click here.
For more information on any of the Vehicle Excise Duties, visit the government website – https://www.gov.uk/government/publications/vehicle-excise-duty-introduction-of-the-diesel-supplement/vehicle-excise-duty-introduction-of-the-diesel-supplement