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DVLA urges drivers to pay car tax before changes come into place in April

Changes are set to come into place for drivers from April this year, and The Driver and Vehicle Licensing Agency (DVLA) have issued a reminder to all drivers to pay their car tax ahead of spring.

A new tax system will be introduced and the DVLA have said drivers could end up paying more if they do not pay their tax ahead of the changes, reported North Wales Live.

Vehicle Excise Duty (VED) is the car tax set to increase to match inflation levels. Petrol and Diesel owners are also expected to be hit hard by the hike to match the Government’s Net Zero target.

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Posting on their official Facebook and Twitter pages, the DVLA wrote: “Untaxed vehicles are hard to hide, easy to tax.

“Remember to always tax your vehicle on time.”

The social media posts were followed up with the hashtags: “Tax it don’t risk it” and “Tax it or lose it”.

Drivers can tax their vehicle online through the DVLA website using a reference number from the vehicle logbook (V5C) or the green “new keeper” slip from a new car.

People have also received a reminder (V11) or “last chance” warning letter from the DVLA with a reference number provided there.

All motorists must tax their vehicles – even if they don’t have to pay anything or have exemptions.

The DVLA has also urged drivers to make sure they meet all legal requirements before taxing vehicles and using the roads.

This includes:

  • Having the correct license
  • Meeting minimum eyesight rules
  • Having your vehicle registered and taxed with a to-date MOT certificate

Vehicle Excise Duty (VED) is expected to rise in accordance with inflation, which will also see the cost of owning a petrol or diesel vehicle rise.

Experts are predicting that inflation could rise to as high as eight per cent by April, after it rose to 5.5 per cent in January.

The amount you pay in VED or car tax depends on the age of the car and how eco-friendly it is.

Those with electric vehicles will continue to pay nothing in VED for the first year – all other car tax bands will increase.

When it comes to exemptions, classic vehicles which are older than 40 years old as well as drivers with disabilities are exempt.

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Vehicles that produce over 255g of CO2 emissions will see their first-year rate rise from £2,245 to £2,365.

If you own a vehicle that produces little emission, you will see no chance or a small increase in costs.

The smallest increase is for vehicles that release between 76 and 90g of CO2 where drivers will see a first-year rate of £120, up from £115.

Benefit in Kind (BiK) rates are also set to rise by one per cent from April 2022.

As a result of this, electric cars and other vehicles producing under 50g of CO2 per kilometer will now pay two per cent BiK instead of one per cent.

All other vehicles will pay one per cent more, regardless of their CO2 levels.

One exception is for vehicles that produce over 156g per km, with BiK rates remaining at 37 per cent.

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