The Labour Party government has confirmed that drivers of certain cars will face a £170 charge in road tax over the next financial year. Chancellor Rachel Reeves announced the increase for Band D vehicles, which fall under one of the 13 tax bands in Vehicle Excise Duty (VED).
Understanding Band D and VED Rates
VED road tax rates for cars first registered after March 2001 and before April 2017 are divided into 13 bands based on CO2 emissions. The lower the emissions, the lower the tax band. Band D vehicles will now cost £170 per year.
Payment Options and Costs
The amount you pay also depends on your chosen payment method. The cheapest option is a single annual payment. Paying monthly or every six months incurs additional charges. For comparison, the standard car tax for vehicles registered after April 2017 is £195 for a single annual payment, but rises to £214.50 if paid via 12 monthly direct debits (£16.25 per month) or £204.76 via two six-monthly direct debits (£102.38 each).
Drivers can pay car tax through the Gov.uk website using the 'Tax your vehicle' service. The DVLA sends a reminder letter (V11) when tax is due, which includes a reference number. Alternatively, payments can be made at most Post Offices with a V11 or V5C document, or via the DVLA's 24-hour telephone service on 0300 123 4321.
Check Your Vehicle's Tax Band
To verify current tax rates and whether your car is taxed, visit the UK government's official website. The Autumn Budget last year confirmed these changes, affecting many motorists with older vehicles.
