The next tax year is due to begin on 6th April 2019. On this date, several changes to taxes and benefits will come into effect. The major concern for drivers is what will happen to Vehicle Excise Duty. This car tax has been undergoing major changes since the initial overhaul in 2017. Last year saw even more changes begin to apply to drivers in the UK, and 2019 will be the same. Car tax is likely to increase this year for many drivers, from between £5 to £65. Read on to find out what to expect.
Car Tax 2017 Changes
The first step in the reformation of Vehicle Excise Duty began in April 2017. It saw the introduction of lower first-year rates with standard rates for the second year and subsequent years. These rates vary according to the type of car and the type of fuel it uses. Anyone registering a vehicle from 1st April 2017 would pay the introductory rate depending on its level of CO2 emissions. Even tax on some diesel cars could cost as little as £10 for the lowest band (1-50 g/km). The highest band (over 255 g/km) costs £2,070. Diesel cars failing to meet the RDE2 standard for emissions of nitrous oxide will cost a lot more to tax than those that do. Alternative fuel cars will be eligible for reductions. Only fully electric vehicles are exempt – but only if they are worth less than £40,000. Any car that costs more than this will also be liable for the “luxury car” surcharge of £310.
Car Tax 2018 Changes
After the first year of lower introductory rates, car tax rates increased from April 2018. The standard rate for vehicles in their second year of registration is £140 for petrol or diesel cars. Alternative fuel vehicles such as hybrids can get a £10 discount, paying £130 instead. It will cost more if you split the payment rather than paying the whole sum at once. Zero-emissions vehicles will not have to pay anything in car tax (again, unless they are worth more than £40,000). The tax rates are different for cars which were registered before 1st April 2017, and different again for cars registered before 1st March 2001. Diesel cars will be taxed the most.
Car Tax 2019 Changes
With the new car tax system underway, drivers can expect to pay the standard rate again unless they are in their first year of registration. However, the rates are due to increase in 2019, keeping in line with inflation. This is where the additional £5 to £65 will come from. Most motorists will only see an increase of £5 to £15 in their annual car tax. Vehicles registered between 1st March 2001 and 31st March 2017 will only experience a maximum increase of £15. However, for those whose vehicles have a CO2 emissions rate of more than 170g/km, there will be an increase of £25 at the minimum. It could even be a rise of £40, £55, or £65, depending on the emissions level of your vehicle. The surcharge for luxury vehicles still applies, as well. You can use the government’s online vehicle tax rate calculator to work out how much car tax you can expect to pay from 2019 to 2020 if you are not sure. You can also work out if you are entitled to any discounts or how your chosen payment method might affect the overall cost of Vehicle Excise Duty for your car in 2019 – 2020.