Car Tax Changes for UK Drivers in 2023

As a car owner, you may have noticed the recent changes in car tax rates. Car tax, also known as Vehicle Excise Duty (VED) or road tax, is a fee the government imposes for registering and driving a vehicle on the road. The amount you pay varies based on your vehicle type, value, and other factors. The latest change to VED came into effect on April 1st, 2022, and the next revision is scheduled for April 2025. Our guide will help you stay informed about thee road tax changes in the UK and understand how they could affect you as a driver.

How is road tax calculated? 

Regarding road tax, the amount you pay depends on factors such as your car’s engine size, fuel type, and CO2 emissions. The amount of car tax you are required to pay is calculated based on the amount of CO2 your car emits.

Typically, the higher the CO2 emissions, the more road tax you will pay. Our guide will help you understand how to calculate your car’s road tax and what factors could impact the amount you owe.

What road tax changes were introduced in the UK ?

The standard road tax rate (VED) for cars registered after 2017 has increased by 6%. This means the tax you pay after the first year has increased from £155 to £165. Additionally, the first-year road tax has been revised to target cars emitting high pollution levels. As a result, most car buyers will now pay road tax ranging from £120 to £585.

If you own a premium vehicle that costs £40,000 or more, your road tax has also increased. Specifically, it has risen by £20, from £335 to £355.

Do electric cars need to pay car tax?

Starting April 1, 2025, electric car drivers in the UK must pay Car Tax, also known as Vehicle Excise Duty (VED). The amount you pay will depend on your car’s age and original price.

For older electric vehicles registered before April 1, 2017, will only have to pay £20 per year in Car Tax from 2025. However, electric cars registered after this date will be charged the standard annual rate for Car Tax, which is currently £180 per year.

Electric car owners whose vehicles were priced at £40,000 or higher at the time of purchase will be charged the premium rate. According to current figures, this would cost £370 for Car Tax or Vehicle Excise Duty (VED).


How can I check if my car tax has been paid? 

If you’re not sure when your road tax is due, there are a few ways to check. The most straightforward way is to head to the DVLA website and use their road tax calculator. 

All you need is your vehicle registration number, which will tell you when your road tax is due. You can also check the MOT status on the same website. 

Another way to check is by looking at your car’s insurance certificate. This will have the expiry date of your road tax included on it. If you can’t find either of these documents, you can contact the DVLA, and they’ll be able to tell you when your road tax is due.

Does any new car have free road tax?

If you own an electric or hydrogen car that produces no carbon dioxide (CO2) emissions, you won’t have to pay any Vehicle Excise Duty (VED) tax until 2025. While hydrogen cars are less common and can be expensive, electric models are widely available and come in a variety of sizes, from small cars to SUVs. Some popular models include the Renault Zoe, Tesla Model S, and Audi e-tron.

What happens if I drive a car without a tax? 

In the UK, all vehicles must be taxed to be driven on public roads. The tax you pay depends on the vehicle’s engine size and emissions. 

You can check the tax rate for your vehicle on the DVLA website. If you are caught driving a vehicle without a tax disc, you may be liable for a fine of up to £1,000. If your vehicle is registered as ‘SORN’ (Statutory Off-Road Notification), you are not required to pay road tax, but you must not drive the vehicle on public roads. 

If you are caught driving a SORN vehicle on the road, you may be fined up to £2,500. So, if you’re planning to drive a car in the UK, check the vehicle’s tax status first!

Can I pay car tax online? 

The amount of car tax you need to pay will depend on your vehicle type and the CO2 emission level of your vehicle. You can pay road tax online or by contacting the DVLA road tax (0300 123 4321).

To pay the tax online, you will need to provide the following details:

  • The vehicle logbook (V5C), registered in your name.
  • A recent V11 reminder from the (DVLA)
  • The ‘new keeper’ slips from a log book for recently purchased vehicles.

If you pay road tax online, you must provide your vehicle registration number and card details. Once you pay off the road tax, you will be sent a confirmation email. 

You must take this email to a DVLA office to get your road tax disc. If you do not have a road tax disc, you will not be able to drive your vehicle on public roads.

What is a good method to pay the car tax annually or monthly? 

Car owners are required to pay an annual tax in order to legally drive their vehicles on public roads. While some people choose to pay this tax in monthly installments, others prefer to pay the full amount upfront. 

There are few things to consider when deciding which payment method is right for you. 

If you decide to pay monthly, make sure you have enough money set aside each month to cover the tax cost. Additionally, you may need to pay an extra fee for the privilege of spreading out your payments. 

Or, if you choose to pay the tax in one lump sum, you can be sure that the entire amount will be paid off by the end of the year. This can save you money in the long run, as well as simplify your financial planning. Ultimately, the best payment method is the one that works best for your individual situation.


1.Do disabled drivers get free road tax?

If you receive the standard rate mobility component of Personal Independence Payment (PIP), you may be eligible for a 50% reduction in Vehicle Excise Duty (VED) tax. However, if you receive the lower rate mobility payment of Disability Living Allowance (DLA), you won’t be able to get this reduction in tax.

2.When will the Car Tax change again?

VED will undergo additional changes beginning on April 1st, 2025. Drivers of electric vehicles will need to pay road tax, and the amount you pay will be based on the age and initial cost of your car.

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