WARNING - NEW ROAD TAX RULES START IN:

Beat The New VED Tax Changes!

Added: 12 January 2017


The VED car tax law will take effect on April 1st 2017, where it will replace the current system which allows many drivers to pay little or no road tax at all.  Here is what you need to know…

Firstly all vehicles registered before April 1st 2017 will remain on the old tax law system, making now the ideal time to replace your vehicle, if you had planned to do so this year.
Once the new system arrives, there will be fewer cars exempt from the VED tax system with one of the biggest changes taking place on low emission cars.  
For example, vehicles which currently have CO2 emissions of up to 100 g/km pay zero road tax.  This is set to change from April, as these cars with a retail cost of less than £40,000 will be charged a flat rate of £140 a year and cars that cost more than £40,000 will receive an additional supplement fee of £310 for five years (including the annual flat rate charge).  Cars with higher emissions than 100 g/km will also pay a higher first year rate.

The only vehicles that will be exempt from the annual flat standard rate of £140 are those registered before the change date and also vehicles that produce zero CO2 emissions such as electric cars. If an electric vehicle costs more than £40,000 however, you will still have to pay the five year supplement charge of £310.  
 
Below is an example table of the new Tax prices from 1st April 2017:

CO² emissions (g/km)

First year tax rate

Annual flat tax rate (*Starting from the second year of ownership)

0

£0

£0

1-50

£10

£140

51 - 75

£25

£140

76 - 90

£100

£140

91 - 100

£120

£140

101 - 11-

£140

£140

111 - 130

£160

£140

131 - 150

£200

£140

151 - 170

£500

£140

171 - 190

£800

£140

191 - 225

£1200

£140

226 - 255

£1700

£140

Over 255

£2000

£140

Below is an example table for vehicles registered before April 1st 2017:

CO² emissions (g/km)

First year tax rate

Annual tax rate (*Starting from the second year of ownership)

Up to 100 g/km

£0

£0

101-110 g/km

£20

£0

111-120 g/km

£30

£0

121-130 g/km

£110

£0

131-140 g/km

£130

£130

141-150 g/km

£145

£145

151-165 g/km

£185

£185

166-175 g/km

£210

£300

176-185 g/km

£230

£355

186-200 g/km

£270

£500

201-225 g/km

£295

£650

226-255 g/km

£500

£885


Cars with a list price of over £40,000 when new pay an additional rate of £310 per year on top of the standard rate (£140) for five years starting from the second year onwards.
So if you have been thinking about getting a car with zero to little road tax to save some money, it is better to act now in order to save a least £140 per year.  For an example a new Ford Fiesta 1.0 EcoBoost model emits around 99 g/km, meaning this vehicle is currently £0 to tax as long as you purchase the car before April 1st 2017.  If you purchased the same vehicle on or after this date, you will then be paying the £140 annual tax flat rate a year.
 
The increase also affects more powerful cars such as the Ford Focus RS which emits up to 175 g/km and the Ford Mustang which can emit up to 306 g/km. If you buy one of these vehicles after April, you will have to pay a lot more up front tax in the first year.  For example you will have to pay around £800 first year tax for the Focus RS and around £2000 for the Mustang.  Again, if the price of the vehicle exceeds £40,000 you will have to pay the 5 year supplement fee of £310 as well.  

To take advantage of the savings before the tax increase and to find out more information, visit your nearest Day’s branch, or call us on 01792 222111.

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