Hundreds of Drivers Caught Off Guard by New Car Tax Adjustments Leading to £140 Increase in Costs

Hundreds of drivers were caught off guard by the recent increase in Vehicle Excise Duty (VED) charges for car tax. The lack of awareness about significant alterations to car tax fees affected both petrol and diesel vehicle owners. The VED fees, commonly referred to as car tax, rose on April 1, in line with the Retail Price Index (RPI) inflation, resulting in increased costs for drivers across the board.

The charges surged by around six percent, with owners of the most polluting vehicles bearing the brunt of the hike. Despite this, a recent poll of over 1,000 respondents showed that 28.7 percent were unaware of these changes. However, the majority of motorists, totaling 69.72 percent, were indeed informed about the adjustments.

One car owner expressed, “Doesn’t it rise every year? I’ve never known it go down, so even if you weren’t aware how much it was rising by, you should expect it was rising – and not by an insignificant amount.” Another added, “I knew in January when they emailed me as I pay monthly. It’s announced in the yearly budget amongst other things. You can always be sure as a motorist your costs will rise every year.”

Currently, motorists purchasing new cars emitting over 255g/km of CO2 are facing the most significant increase, with year one fees increasing from £2,605 to £2,745, marking a substantial £140 rise this month. Standard fees for cars registered after April 2017 have increased by £10 per year, affecting older models too. Owners of vehicles made between 2001 and 2017 will see their fees rise by up to £40, with the highest charges climbing from £695 to £735. Furthermore, classic cars registered after 1984 will experience an increase of up to £20, depending on the size of their engine.