VED tax is arguably one of the most tedious parts of owning and driving a car in the UK. As soon as you think you know how much VED tax you have to pay, the rates change!
On the 1st April 2021, the chancellor announced changes to VED tax rates upon releasing the budget for 2021-2022.
A lot of the changes to VED tax rates are centred around the UK’s effort to reach net zero emissions and ban the sale of new petrol and diesel cars in 2030.
In short, the more CO2 emissions your car, van or 4X4 produces, the more VED tax you will have to pay.
It’s highly likely that VED tax rates will continue to change as we move closer and closer to our climate goals, and at Scrap Local we want to make sure that you know how much you’re paying to drive your car.
In this guide, we’ll discuss what VED tax is, why it’s changing and which VED tax band your vehicle falls into so that you can see how much you’ll need to pay.
Do you want to switch to a cleaner vehicle to reduce the amount of VED tax you pay?
Then, why not scrap your old petrol or diesel car with us at Scrap Local?
We’ll show you how to scrap your old petrol and diesel without any hassle and for some of the best scrap prices.
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VED stands for Vehicle Excise Duty.
More commonly known as either road tax or vehicle tax, VED is a tax for registered vehicles in the UK.
How much VED tax you will need to pay largely depends on when your vehicle is first registered.
In addition to this, other factors can also impact the amount of VED tax you have to pay in the UK. Some of these include:
Based on both the date your vehicle is first registered and the above factors, you will be put into a VED tax band and charged a certain amount for your vehicle.
Whilst some vehicles like classic cars might be exempt from paying VED tax, it’s always a good idea to double-check and apply for vehicle tax exemption if you believe that you’re eligible for it.
For more information on vehicles exempt from VED tax, visit the official GOV.UK website.
It is illegal to drive an untaxed vehicle if you are not exempt.
Luckily, you can check if your vehicle is taxed or not without any hassle.
VED tax rates are always subject to change and it can be difficult for UK road users to keep track of how much VED tax they need to pay.
Climate change is a growing problem in the UK, and recent changes to VED tax rates for vehicles registered on or after the 1st April 2017 show that cars which emit higher CO2 emissions will be charged more.
The UK is at the forefront of tackling climate change and will host the UN Climate Change Conference (COP26) in November 2021.
Phasing out diesel and petrol engines is a critical point that the UK will raise at COP26 in relation to reaching a zero-carbon economy.
Clean air zones are appearing in cities like Greater Manchester, where air pollution is on the rise and more UK road users are being encouraged to switch to cleaner, electric vehicles prior to the upcoming ban on the sale of new petrol and diesel cars in 2030.
Due to this, it isn’t surprising that VED tax rates for vehicles which produce more emissions will increase in 2021.
As stated before, VED tax rates are primarily based on when your vehicle is first registered.
Below we have provided a drop-down list for the current VED tax rates so that you can find out how much you will need to pay.
What are the VED Tax Bands?
To help you understand which VED tax band you fall into and how much you will need to pay, we recommend you use the official GOV.UK to double-check VED tax rates in the UK.
With DVLA’s calculator, you can calculate your current VED tax rate and see which band you fall into!
Whilst VED tax might be low for some road users, for others it might be too expensive and not worth shelling out for.
Climate change is a continual problem and it’s clear that low-emission, electric vehicles are on the rise as more funding is going towards schemes to install electric charge points in the UK.
If you are looking to switch to a cleaner and less expensive vehicle, why not scrap your old car with Scrap Local’s specialists?
We deal with thousands of scrap car enquiries and can connect customers with reliable scrap yards anywhere in the UK.
We aim to make scrapping your car as easy as possible and have an in-depth guide listing all the things you need to do to scrap your car.
Find the best scrap price for your end of life vehicle and scrap your car with us!
Whether you’re a scrap metal dealer, vehicle recycler or even a scrap collector, joining Scrap Local today will give you access to thousands of new enquiries each month!
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