If you're a UK resident and drive a vehicle, you'll know that you have to pay something called Vehicle Excise Duty (VED), or as we all know it, Road Tax. For those of you who have business vehicles, you might know this as Benefit In Kind (BIK), which applies to your company cars
The amount of road tax you pay depends on multiple factors. Elements that can influence your road tax prices are;
In simple terms, if your vehicle has a bigger engine, it will be producing more CO2 emissions, meaning that you are liable to pay more tax for the running of that vehicle. Currently, diesel drivers pay more road tax than petrol users, with electric vehicle owners having to pay absolutely nothing as they're not contributing to CO2 emissions.
Previously, this test used to be measured through the NEDC (New European Driving Cycle), which was developed in the 1990s but became outdated due to the rise in advanced technology applied into modern vehicles.
Now, WLTP (Worldwide Harmonised Light Vehicles Test Procedure) replaces the old NEDC, and this method can give you a more realistic evaluation of your vehicles MPG and CO2 emissions. Tests included in the new WLTP calculations are;
On April 1st, 2020, the way your road tax is calculated changed. To see what you're new tax band is, check out our news article HERE to see where your vehicle stands in the VED increase.
| VED Band | CO2 Emission (g/km) | Diesel Cars (TC49) that meet the RDE2 standard and petrol cars (TC48) | All other diesel cars (TC49) | Alternative Fuel Cars (TC59) |
| A | 0 | £0 | £0 | £0 |
| B | 1-50 | £10 | £25 | £0 |
| C | 51-75 | £25 | £115 | £15 |
| D | 76-90 | £115 | £140 | £105 |
| E | 91-100 | £140 | £160 | £130 |
| F | 101-110 | £160 | £180 | £150 |
| G | 111-130 | £180 | £220 | £170 |
| H | 131-150 | £220 | £555 | £210 |
| I | 151-170 | £555 | £895 | £545 |
| J | 171-190 | £895 | £1,345 | £885 |
| K | 191-225 | £1,345 | £1,910 | £1,335 |
| L | 226-255 | £1,910 | £2,245 | £1,900 |
| M | Over 255 | £2,245 | £2,245 | £2,235 |
| Fuel Type | Single 12 month payment | Single 12 month payment by Direct Debit | Total of 12 monthly payment by Direct Debit | Single 6 month payment | Single 6 month payment by Direct Debit |
| Petrol or Diesel | £155 | £155 | £162.75 | £85.25 | £81.38 |
| Electric | £0 | N/A | N/A | £0 | N/A |
| Alternative | £145 | £145 | £152.25 | £79.75 | £76.13 |
Vehicles with a list price of more than £40,000 will have to pay an extra £335 a year to the rate listed above. You only have to pay this rate for 5 years (from the second time the vehicle is taxed).
