Latest news with #VehicleExciseDuty
Daily Mirror
5 days ago
- Automotive
- Daily Mirror
Urgent warning for thousands of drivers with cars made between these years
The car tax warning has been issued to drivers and road users who own a vehicle between a certain period of time. Here's what you need to know about the tax increase Motorists with vehicles manufactured between 2001 and 2017 have been issued with an urgent warning. A car tax alert has been sent out to drivers and road users following changes to Vehicle Excise Duty (VED) under the Labour government. Older motors, including contemporary classics registered between 1 March 2001 and 31 March 2017, remain subject to the emissions-based system, with those producing under 100g/km still exempt from charges, whilst everyone else faces a £10 hike from 2024 rates Car insurance firm Hagerty noted: "That means owners of older cars emitting more than 255g/km of CO2 will pay £735 a year for the privilege of driving on Britain's beautifully-maintained road network. Ahem." "Cars registered before 1 March 2001, that were still younger than 40 years old on 1 January 2025, are charged based on engine capacity. That's £210 a year for those under 1,549cc and £345 for anything above." It explained: "The Government considers any car older than those to be a "historic vehicle" and is therefore exempt from paying road tax, or, indeed, being required to have an annual MOT test." Vehicles registered afterwards operate under a separate framework, reports Birmingham Live. During their inaugural registration year, owners must pay a "showroom tax" calculated on the motor's CO2 output. John Cassidy, managing director of sales at Close Brothers Motor Finance, suggests certain purchasers are already deterred by insufficient battery charging networks for electric vehicles. "Applying VED to EVs provides one less incentive for buyers to make the switch," he says. Lorna Macpherson, a motor finance expert at Ocean Finance, which offers car loans, suggests that while the changes to the tax regime do make cleaner cars cheaper to run, drivers may be unable to switch due to the escalating cost of motoring. "For petrol and diesel cars, an increase in VED means higher running costs for owners, making newer, more efficient cars even more attractive," she says. "But with rising interest rates on car finance and the general cost of living crisis, many will hold on to their current vehicles for longer rather than upgrading." This has become concerning since the DVLA raised VED rates on April 1 for owners of petrol, diesel and electric vehicles, which led to significant price increases for some drivers. Motorists can quickly find out the engine size (cc), power (kW) and CO2 (g/km) of their vehicle using free online sites such as WeBuyAnyCar's number plate checker.
The Irish Sun
18-07-2025
- Automotive
- The Irish Sun
Fury after motorists paid more than £20billion in VAT last year just to buy and run cars
MOTORISTS paid more than £20billion in VAT last year just to buy and run cars — making it one of the biggest taxes on driving. Figures show consumer spending on vehicles hit £137billion in 2024, the third highest on record. Advertisement That generated £22.8billion in VAT for the Treasury, almost matching the £24.6billion raised from fuel duty. But £14.9billion of that fuel duty came from diesel, which is mainly used by haulage firms — not everyday drivers. Meanwhile, tax receipts from Vehicle Excise Duty are around £8billion a year. AA president Edmund King said: 'There's a threat of increased motoring taxation as the Chancellor seeks to balance the books. Advertisement "But the latest Office for National Statistics consumer spending statistics reveal the hidden tax take from private motorists.' He added: 'The danger of ramping up motoring costs is that it affects individuals and businesses — and ultimately fuels inflation.' His warning came as fears mounted that Chancellor Rachel Reeves is considering a fuel duty hike in her next Budget to cover the cost of reversing welfare cuts. The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 — saving drivers thousands. Advertisement Most read in Motors Exclusive Reform UK's Richard Tice said: 'These figures show drivers are being clobbered with a stealth tax bill worth billions. 'With VAT raking in more than fuel duty, the idea of hiking it further is a disgrace. Labour must commit to freezing fuel duty — anything else would be a kick in the teeth for working people.' Drivers forced to pay new 'Doomsday' fee every day under July plan - it's already in effect depending on where you park_1 A Treasury spokesman said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to fix up to seven million extra potholes.' Treasury Minister James Murray refused to comment on Labour's tax plans yesterday. Advertisement He told Sky News: 'There's lots of speculation about lots of different tax measures, and I'm not going to get into that.' 1 Motorists paid more than £20billion in VAT last year just to buy and run cars
Scottish Sun
18-07-2025
- Automotive
- Scottish Sun
Fury after motorists paid more than £20billion in VAT last year just to buy and run cars
It comes as fears mount Chancellor Rachel Reeves is considering a fuel duty hike in her next Budget STEALS ON WHEELS Fury after motorists paid more than £20billion in VAT last year just to buy and run cars Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MOTORISTS paid more than £20billion in VAT last year just to buy and run cars — making it one of the biggest taxes on driving. Figures show consumer spending on vehicles hit £137billion in 2024, the third highest on record. Sign up for Scottish Sun newsletter Sign up That generated £22.8billion in VAT for the Treasury, almost matching the £24.6billion raised from fuel duty. But £14.9billion of that fuel duty came from diesel, which is mainly used by haulage firms — not everyday drivers. Meanwhile, tax receipts from Vehicle Excise Duty are around £8billion a year. AA president Edmund King said: 'There's a threat of increased motoring taxation as the Chancellor seeks to balance the books. "But the latest Office for National Statistics consumer spending statistics reveal the hidden tax take from private motorists.' He added: 'The danger of ramping up motoring costs is that it affects individuals and businesses — and ultimately fuels inflation.' His warning came as fears mounted that Chancellor Rachel Reeves is considering a fuel duty hike in her next Budget to cover the cost of reversing welfare cuts. The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 — saving drivers thousands. Reform UK's Richard Tice said: 'These figures show drivers are being clobbered with a stealth tax bill worth billions. 'With VAT raking in more than fuel duty, the idea of hiking it further is a disgrace. Labour must commit to freezing fuel duty — anything else would be a kick in the teeth for working people.' Drivers forced to pay new 'Doomsday' fee every day under July plan - it's already in effect depending on where you park_1 A Treasury spokesman said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to fix up to seven million extra potholes.' Treasury Minister James Murray refused to comment on Labour's tax plans yesterday. He told Sky News: 'There's lots of speculation about lots of different tax measures, and I'm not going to get into that.'
Daily Mirror
16-07-2025
- Automotive
- Daily Mirror
Full list of 59 Ford, BMW, Audi and Toyota cars hit by huge £2,500 tax rise
Anyone buying certain new cars have been hammered with massive tax rises - which many don't know about A whopping 59 cars from 24 brands, including popular manufacturers such as Ford, BMW and Mercedes, have been hit with a £2,745 car tax hike since in April 2025 - meaning anyone buying one of these cars is impacted. This comes on the back of significant changes in Vehicle Excise Duty (VED) rates announced in the Autumn Budget by Labour. First-year VED fees for petrol and diesel models have been hiked this year. These are hefty fees paid by owners of brand-new vehicles before they switch to the standard rate. Fees rose on a sliding scale, with most of the higher tiers seeing fees double from their current 2024 rates. Models producing over 255 g/km of CO2 were hit with the highest £2,745 increase, affecting some of the most popular vehicles on the road. This means common mid-market brands such as Ford and Toyota have some models affected. BMW, Mercedes and Audi models are also feeling the pinch. In addition, high-end vehicles will bear the brunt of the change. Among those facing the new tax are some models of Porsche, Lotus, Lamborghini and McLaren, reports Lancs Live. Chancellor Rachel Reeves announced at the end of October that drivers of new petrol, diesel and hybrid vehicles would face higher first-year tax rates. It was in first year road tax where the biggest changes were seen - in the top band of 255+g/km emissions it rose to £5,490 having previously been £2,475. In standard road tax rate, which is what you'll pay annually to tax your car from the second year onwards, for all cars registered registered after 1 April 2017 it is £195 – petrol, diesel, hybrid and electric - t was previously £190 for petrol/diesel, with a £10 discount for hybrids, and free for electric cars. The expensive car supplement is also increasing to £425 per year (previously £410), which you need to pay for the second to sixth year your car is on the road if it cost more than £40,000 new. The move is designed to encourage consumers to buy electric vehicles and widen the gap between 'higher polluting' vehicles and EVs. The first-year tax figure is calculated based on the amount of carbon dioxide the vehicle produces. Electric vehicles (EVs), which have been enjoying the perk of not paying Vehicle Excise Duty (VED), are set for a change as owners will face a nominal £10 charge for their first year's VED from April—a decision that has now been put on ice. In contrast, drivers of petrol, diesel and hybrid cars are gearing up for a hefty increase, with current rates expected to double by 2025, according to Lancs Live. Speaking to Car Dealer Magazine, it was revealed that this could mean a new Ford Puma might see its first-year VED jump from £220 to £440, while those splashing out on a luxury Range Rover could be hit with a rise from £2,745 to an eye-watering £5,490. Chancellor Rachel Reeves, in her Budget speech, informed MPs: "To help drive the transition to electric vehicles the government is strengthening incentives to purchase EVs by widening the differentials in Vehicle Excise Duty First Year Rates between EVs and hybrids or internal combustion engine cars." She further stated that the government will continue to support EVs by "The government is also maintaining EV incentives in the Company Car Tax regime and extending 100% First Year Allowances for zero emission cars and EV charge points for a further year." The Budget document illuminated the forthcoming alterations, stating: "Vehicle Excise Duty first-year rates are paid for the first year of a car's lifecycle, at the point of registration, and vary based on emissions." The statement further disclosed: "From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars." Full list of new models emitting more than 255 g/km has been made available. Audi RS6 4.0 TFSI V8 Audi S8 4.0 TFSI V8 McLaren GT 4.0T V8 Audi R8 5.2 FSI V10 Lamborghini Huracan 5.2 V10 Chevrolet Corvette Stingray 6.2 V8 Volkswagen Amarok 3.0 TDI Aston Martin DBX 4.0 V8 Ferrari Roma 3.8T V8 Audi SQ7 4.0 TFSI V8 Range Rover Sport 4.4P V8 Jaguar F-Pace 5.0 P575 V8 Aston Martin DB12 4.0 V8 Porsche 911 3.7T 992 Turbo Jeep Wrangler 2.0 GME Ford Ranger 2.0 TD EcoBlue Audi RSQ8 4.0 TFSI V8 Lotus Emira 3.5 V6 Bentley Continental 4.0 V8 Audi SQ8 4.0 TFSI V8 Aston Martin Vantage 4.0 V8 Toyota Hilux 2.8D Porsche Macan 2.9T V6 Mercedes-Benz SL55 Range Rover 4.4 P530 V8 Mercedes-Benz AMG GT 4.0 V8 Porsche 718 Cayman 4.0 GT4 Lamborghini Urus 4.0 V8 BiTurbo Audi RS7 4.0 TFSI V8 Ford Mustang 5.0 V8 Toyota Land Cruiser 2.8D Bentley Continental 6.0 W12 Mercedes-Benz GLC63 Ford Ranger 3.0 V6 INEOS Grenadier 3.0P Range Rover 4.4 P615 V8 Land Rover Defender 90 5.0 P425 V8 Rolls-Royce Ghost 6.75 V12 Ford Ranger 3.0 EcoBlue Mercedes-Benz G63 Ferrari Purosangue 6.5 V12 Rolls-Royce Cullinan 6.75 V12 Alfa Romeo Stelvio 2.9 V6 Bi-Turbo Mercedes-Benz GLE63 Maserati Levante 3.0 V6 Porsche Cayenne 4.0T V8 BMW M8 4.4 V8 Maserati MC20 3.0 V6 Land Rover Defender 110 5.0 P425 V8 Mercedes-Benz G400D Lamborghini Revuelto 6.5 V12 Bentley Bentayga 4.0 V8 BMW X7 M 4.4 V8 BMW X6 M 4.4 V8 BMW Alpina XB7 4.4 V8 Bentley Flying Spur 4.0 V8 Maserati Levante 3.8 V8 BMW X5 M 4.4 V8 Mercedes-Benz GLS63h
Daily Mirror
15-07-2025
- Automotive
- Daily Mirror
Petrol and diesel car owners hit with 'ten fold' car tax increase
Drivers with certain petrol and diesel vehicles were hit with major tax changes from April 2025 onwards Petrol and diesel drivers have been hit with a massive 'ten-fold' car tax hike in 2025, in a blow for UK motorists. Owners of certain combustion engines were hit with substantial increases back in April as sweeping changes to Vehicle Excise Duty (VED) charges took effect. VED charges are worked out based on how much a vehicle pollutes, meaning the dirtiest motors typically face the biggest bills. But some of the cleanest combustion cars - those pumping out between just 1 and 50g/km of CO2 - were saw some of the most brutal rises. Many plug-in hybrid models also got caught up, with bills rocketing from just £10 to more than £100, reports the Express. The RAC sounded the alarm about these changes earlier this spring, and now drivers ae feeling the effects. The RAC said: "The biggest news is the ten-fold increase in first-year car tax rates for cars emitting between 1-50g/km of CO2, which includes hybrids. "These will increase from the current rate of £10 for petrol and diesel cars (or zero for hybrids) to £110. The vast majority of plug-in hybrid cars fall into this band. "Rates for new cars emitting between 51-75g/km of CO2 will increase from £30 (or £20 for hybrids) to £135." Massive jumps in first-year VED rates formed the backbone of the overnment's car tax shake-up during the Spring.. In other cases charges doubled outright, forcing road users to shell out thousands more just to keep their cars on the tarmac. Vehicles producing more than 255g/km of CO2 will now face £5,490 in first-year VED charges, a substantial jump from the previous annual rate of £2,745. Similarly, heavily polluting cars generating between 226 and 255g/km will witness charges surge from £2,340 to £4,680. Experts at Pete Barden said: "Starting from April 1, 2025, the UK's Vehicle Excise Duty (VED) rates for new cars are set for a major overhaul, with significant increases in first-year rates for certain vehicle emissions categories. "The government explains these changes as a way to "strengthen incentives" for choosing zero-emission and electric vehicles by expanding the cost differences between electric, hybrid, and internal combustion engine (ICE) vehicles."
