ROAD TAX COSTS (Vehicle Excise Duty)
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;
- Engine size
- Fuel type and;
- The amount of CO2 your vehicle outputs when it first set foot on the road
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.