If you are a car owner, then you are all too aware of the cost involved in maintaining your vehicle. On top of the standard running costs, you also have to pay Vehicle Excise Duty every year. According to the House of Commons Library:
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Vehicle Excise Duty (VED) is an annual tax paid by owners of vehicles driven or kept on public roads. The tax applies to vehicles in the whole of the UK.
The explanation goes on, explaining: ‘How much a vehicle owner pays in VED depends on a number of factors, including the type of vehicle owned, when it was first registered, or its environmental performance.’
We have already written about the £1000 fine drivers get if they fail to report these medical conditions, and the fine of the amount for drivers over 70 who fail to renew their licence. Now, the VED fee is going to go up in line with Retail Price Index inflation. Here’s everything you need to know about the 2024 increase.
VED to increase in April
The fee is set to increase in just a matter of days. From 1st April, 2024, this fee will be bumped up. The fee does not yet apply to electronic vehicles, but it does to all those who own petrol and diesel motors. This has angered some motorists, with one taking to X to express his frustration. @Calavera437 wrote:
Vehicle Excise Duty (VED), is car tax that drivers are required to pay to use public roads legally. It is to help fund the maintenance and improvement of road infrastructure throughout the country. Electrical vehicles that damage roads the most pay least.
Indeed, there may be some truth to this.
According to Britpave, 'the average electric car puts 2.24 times more stress on roads than its petrol equivalent, and 1.95 more than diesel'. This is because they are heavier in account of their need for larger engines.
According to motoring journalist and expert Pete Barden, the price of keeping the average vehicle on the roads will increase by around 6%. Those who own polluting vehicles will be worst affected.
How much will this cost?
Estimates have been made that give an idea to motorists about what price they can expect to pay. For example, people who have new petrol and diesel cars that emit over 255 g/km of CO2 will pay £2,745 in year one. This shows a big £140 hike on the £2,605 price they paid in 2023.
However, it is not only emission-heavy vehicles that are affected. Motors that emit between 226 and 255 g/Km are facing an increase of £120. Even cleaner cars that emit between 191 and 225 g/km are set to pay more with a substantial £100 rise.
Standard rates for car models first registered after April 2017 will go up by £10 per annum under the new charges.
Electric cars are exempt from VED for one more year, until they are introduced in April 2025. Another group to be aware of are classic cars. Vehicles that are over 40 years old can also avoid paying by applying for a historic vehicle tax exemption.
Read more:
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⋙ This date night idea could land you with a £2.5k fine
Sources used:
Express: Car tax changes to be introduced in days - petrol and diesel drivers to pay £140 more
House of Commons Library: Vehicle Excise Duty (VED)
