DVLA VED car tax: Find out how much you will pay!

Green scheme launch
Green scheme launch

New tax rules will end up costing South Yorkshire motorists hundreds of pounds when they come into force in April.

DVLA’s VED is set for an overhaul that means cars that previously dodged a bill will now be liable with environmental vehicle excise duty intended to punish people who drive cars with high levels of emissions.

DVLA VED awaits

DVLA VED awaits

The bulk of the tax will come in the first year for most buyers of high-emission cars. Importantly this tax is only applicable on new cars – expensive and higher emission cars bought before 1 April are still covered by the lower rates.

The car tax’s current bands were introduced in 2001, when most cars had higher emissions than those on the road today. Many current vehicles were judged clean enough to slip under the threshold and avoid paying the tax at all.

Back then, the average emission for a UK car was 178 grams of carbon dioxide per kilometre (gCO2/km), so cars that emitted less than 100 gCO2/km paid nothing at all. But now, because of efforts to meet EU emissions targets, the average car emits only 125 gCO2/km. To make sure more cars are caught in the net, the government has adjusted the bands.

Old bands VED – CO2 Emissions – Annual rate – First year rate A – Up to 100 g/km – £0 – £0 B – 101-110 g/km – £20 – £0 C – 111-120 g/km – £30 – £0 D – 121-130 g/km – £110 – £0 E – 131-140 g/km – £130 – £130 F – 141-150 g/km – £145 – £145 G – 151-165 g/km – £185 – £185 H – 166-175 g/km – £210 – £300 I – 176-185 g/km – £230 – £355 J – 186-200 g/km – £270 – £500 K – 201-225 g/km – £295 – £650 L – 226-255 g/km – £500 – £885 M – Over 255 g/km – £515 – £1,120

Electric and hydrogen cars are exempt. But everyone else will pay something. Any conventional car bought after 1 April will pay anything from £10 to thousands in the first year, then £140 every year thereafter. A Volkswagen Passat 1.6 TDI S emits 105 gCO2/km.

Currently it pays nothing in the first year and £20 a year afterwards. Now, it pays £140 a year, each year. A Nissan Qashqai 1.6 dCi (130) N-Connecta, at 115 gCO2/km, bumps up from nothing in the first year and £30 afterwards to £160 in the first year and £140 afterwards. Meanwhile, gas guzzlers emitting over 225 gCO2/km will see their bills hiked from £1,100 to £2,000.

New bands Emissions (g/km of CO2) – First year rate – Standard rate 0 – £0 – £0 1-50 – £10 – £140 51-75 – £25 – £140 76-90 – £100 – £140 91-100 – £120 – £140 101-110 – £140 – £140 111-130 – £160 – £140 131-150 – £200 – £140 151-170 – £500 – £140 171-190 – £800 – £140 191-225 – £1,200 – £140 226-255 – £1,700 – £140 Over 255 – £2,000 – £140 (Cars costing more than £40,000 pay £310 extra for five years)

If you’re planning to splash out on a car worth £40,000 or more, make sure you keep enough money behind to pay your tax bill. Expensive cars cost £310 more on top of the standard rate for the first five years – and that’s before the specific emissions are taken into account.

For now, the only people who need to be worried are people planning to buy a new car. The rules kick in at the beginning of the next tax year in April, which means some prospective buyers may look to make their purchase in the next few months.

If you buy it (or bought) before the beginning of April and it emits less than the old threshold of 100 gCO2/km, you’ll be free of tax for life. If it’s above that limit, the old rates will continue to apply. The old tax bands apply, so things aren’t about to change for you – unless you decide to upgrade down the line.

The bill won’t be as big as it is for some people, but even the noble hybrid is caught in the net. A Toyota Prius MY2016 Active 1.8l will cost £100 in the first year and £140 thereafter.

TRENDING STORIES:

UPDATE: Man arrested on suspicion of murder in connection with death of teenage girl in Rotherham
LOOK: First picture of large sinkhole near Sheffield city centre
'Fly high angel' - tributes pour in to girl found dead on South Yorkshire pathway
Teenage girl's body discovered on pathway in South Yorkshire
Man who killed three members of Sheffield family appeals against whole-life prison term
Anger at change to Sheffield bus route that leaves children 'vulnerable'
Sheffield Wednesday: Glenn Loovens calls on in-form Owls to stay focused
Sheffield United: Joe Riley’s move from Manchester United moves a step closer
VOTE: What's the best song about Sheffield?
BLOODY HELL! Batty vampire bats sucking OUR blood!