So... what are these changes and how will it affect you as a driver?
What we refer to as road tax isn’t actually called road tax, it’s something called vehicle exercise duty. Vehicle exercise duty, shortened to VED, is a tax that you must pay which is dependant upon the amount of CO2 that your vehicle emits, the engine size and type of fuel you use. With the overall idea of, the more CO2 your vehicle emits, the more tax you pay. The tax is enforced by the DVLA and has been in place for years, so this news, we hope, shouldn’t be new to you!
As of the 1st April 2020, Vehicle Exercise Duty rates will be increasing. What this means is that you will be paying more ‘road tax’ on your vehicle annually due to the changes in the way that vehicle’s emissions tests are being done.
For many years, the procedure for calculating miles per gallon scores have been down to the New European Driving Cycle, (NEDC) which many believe has become outdated and isn’t reflective of a vehicle’s actual MPG. The process has been updated to the ‘Worldwide Harmonised Light Vehicle Test Procedure’, or WLTP as of September 2017. The reason as to why drivers will see an increase in road tax is because the new tests will cause most cars to experience an increase in CO2 emissions due to the test being more accurate than in the past.
The new test will introduce much more realistic testing conditions such as:
Vehicle Exercise Duty rates coming into effect from April 6th will only affect those who are purchasing a brand new petrol or diesel vehicle for the first year due to the benefit-in-kind rate changes. Remember, driver’s with hybrid vehicles pay a reduced rate and drivers of electric vehicles will pay nothing at all.
If you are looking to avoid the increased rates, the best thing to do is to register your new vehicle before March 31st 2020, as any date after you will have to pay more.