Motorists across the UK are being warned to prepare for significant changes to Vehicle Excise Duty (VED) rates that will come into effect in the upcoming months. The Driver and Vehicle Licensing Agency (DVLA) is urging vehicle owners to ensure their car tax information is up to date to avoid fines, even if they qualify for exemptions or owe no money.
Table of Contents
- New VED Rates Take Effect in April 2024
- Exemptions and Support for Disabled Drivers
- Diesel and Petrol Vehicle Owners Face Steep Increases
- Expert Advice on Mitigating Costs
- Take Action Now
New VED Rates Take Effect in April 2024
From April 2024, the government will increase VED rates for cars, motorcycles, and vans in line with the Retail Price Index (RPI). The first-year rate for new cars, however, will remain excluded from this adjustment. Motorists are being encouraged to act promptly to avoid complications once these changes take effect.
Taking to social media platform X (formerly Twitter), the DVLA emphasized:
“You must tax your vehicle, even if you don’t have to pay anything.”
The agency reminded vehicle owners that certain cars may be exempt from paying VED, including classic cars manufactured before January 1, 1984. However, these vehicles must still be registered as taxed with the DVLA. Failing to comply could result in fines of up to £2,500 and even penalty points on the driver’s license if the vehicle is deemed in a dangerous condition.
Exemptions and Support for Disabled Drivers
Specific exemptions are available for disabled drivers. These exemptions apply to individuals receiving:
- Higher rate mobility component of Disability Living Allowance (DLA)
- Enhanced rate mobility component of Personal Independence Payment (PIP)
- Higher or enhanced mobility rates of Adult or Child Disability Payments
- War Pensioners’ Mobility Supplement
- Armed Forces Independence Payment
However, these benefits only apply to one vehicle per driver, and users must ensure proper registration to claim exemptions.
Diesel and Petrol Vehicle Owners Face Steep Increases
A detailed analysis by Go Compare reveals that van owners, particularly those using petrol and diesel models, will experience significant financial impacts. Diesel van buyers are expected to face an average increase of £1,807 per vehicle in the first half of the tax year, contributing to a staggering £14.2 million increase in tax revenue.
Petrol van owners will see an average rise of £1,354 per vehicle, totaling an additional £1.2 million in tax payments. Motorists opting for cleaner, more fuel-efficient vans, such as hybrids, will experience smaller increases, with annual tax charges rising by just £252.
Expert Advice on Mitigating Costs
Motoring expert Tom Banks from Go Compare advises drivers to consider switching to cleaner fuel vehicles to minimize the financial impact.
“The tax rates are based on CO2 emissions, so if you’re able to, this is a good time to switch to a van using cleaner fuels in the cheaper tax bands,” he said.
Take Action Now
With just months to go before the changes take effect, the DVLA is encouraging drivers to renew their car tax promptly to avoid penalties. Drivers can easily tax their vehicles or check their status using the official GOV.UK website under the campaign hashtag #TaxItDontRiskIt.
Failing to act could result in hefty fines, penalty points, or even prosecution. Motorists are encouraged to stay informed and ensure compliance to avoid being caught out by these new regulations.
A passionate content creator specializing in viral trends, fashion, beauty, and news. With a keen eye for the latest in style and pop culture, Dilshan Senarath delivers fresh, engaging insights that keep audiences informed and inspired. Expertise in curating viral stories with style and impact.
