If you own a car in the UK, you are required to pay car tax, also known as vehicle excise duty (VED). The amount of car tax you need to pay depends on the CO2 emissions of your vehicle, as well as its fuel type and value. In this blog, we’ll explain how UK car tax works, how to calculate it, and where you can find relevant resources to help you understand and manage your car tax.
How does UK car tax work?
In the UK, car tax is based on the CO2 emissions of your vehicle, with higher emissions resulting in higher tax rates. There are 13 different tax bands, ranging from zero emissions vehicles (which are exempt from car tax) to the highest emissions vehicles, which can be subject to a tax rate of up to £2,245 per year.
The tax rate also depends on the fuel type of your vehicle. Diesel and petrol cars typically have higher tax rates than hybrid and electric cars, as they produce more emissions. The value of your car also affects the amount of car tax you pay, as more expensive cars typically have higher tax rates.
When you first register a car in the UK, you will need to pay car tax for the first year, based on its CO2 emissions. After the first year, the tax rate will depend on the fuel type and age of the car, with older cars typically having lower tax rates.
How do I calculate my car tax?
To calculate your car tax, you will need to know your vehicle’s CO2 emissions and fuel type. You can find this information on your vehicle registration document (V5C), or by using the government’s online car tax calculator or other online check sites like www.cartaxcheck.co.uk.
Once you have this information, you can use the car tax calculator to find out how much you need to pay. The calculator will also tell you when your car tax is due, and provide options for paying it online, by phone, or by post.
Where can I find relevant resources?
If you want to learn more about UK car tax, there are a number of resources available online. Here are a few to get you started:
- The Government’s Car Tax Calculator: This is a useful tool for calculating your car tax and can also provide information on when your tax is due and how to pay it.
- The DVLA website: The Driver and Vehicle Licensing Agency (DVLA) is the government agency responsible for vehicle registration and licensing in the UK. Their website has information on car tax, as well as other topics related to vehicle ownership.
- Citizens Advice: This independent charity provides free, confidential advice to people in the UK. They have a section on their website dedicated to car tax, which includes information on exemptions, penalties, and other related topics.
- MoneySavingExpert: This popular personal finance website has a section on car tax, which includes guides on how to save money on car tax, as well as information on changes to car tax rates and regulations.
Car tax in the UK is an important consideration for anyone who owns a vehicle and is a legal requirement. The amount of tax you need to pay depends on the CO2 emissions of your car, as well as its fuel type and value. To calculate your car tax, you can use the government’s online car tax calculator or any of the resources mentioned in this article.
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