Guide On Vehicle/Car Tax|DNS Accountants

Today, most of us own a vehicle at least one vehicle. Find out if you are responsible for vehicle or car tax.

About Vehicle Tax

Vehicle Tax is known by various names around the world such as Road Tax, Car tax. In the United Kingdom, Vehicle tax is a tax paid on all the registered vehicles which are driven or use it on a public road. UK government provides you with Driver and Vehicle Licensing Agency (DVLA) tax service to make road tax payments. If you choose right vehicle on the basis of CO2 emission and type of fuel is used could make lot of difference in road tax cost. An individual with disability may be exempt from vehicle tax and no road tax on historic vehicles.  

Taxing A Vehicle- Road Tax

How much road tax you will pay on your vehicle depends on when it was registered, carbon dioxide (CO2) emission from vehicle and type of fuel used. Cars with list price below £40,000 and produce 0 grams of carbon dioxide (CO2) emission, no need to pay car tax on such type of cars.

Tax Rate for the vehicle registered before 1 March 2001 depends only on engine size.

•          The tax rate for light good vehicles engines not over 1549cc is £145.00 for 12 months and for 6 months is £79.75
•          The tax rate for light good vehicles engines over 1549cc is £235.00 for 12 months and for 6 months is £129.25

Check out vehicle tax rate for motorcycles and tricycles registered before 1 March 2001.

Road Tax for the vehicles registered between 1 March 2003 and 31 December 2016:

•         Rate of vehicle tax for light good vehicles that meet the EURO 4 standard is £140.00 for 12 months and for 6 months is £77.00

Road Tax for the vehicles registered on or after 1 march 2001

•          Vehicle tax rate for vehicles registered between 1 March 2001 and 31 March 2017 depends on carbon dioxide( CO2) produced and the type of fuel used by the vehicle.
•          Vehicle registered under above mentioned date that produce up to 100gm of carbon dioxide (CO2) emission does not need to pay road tax.

Check out in which tax band (The rates are split into bands based on how many grams of carbon dioxide (CO2) a car emits per kilometer) your vehicle falls and vehicle tax amount on the basis of type of fuel used.

Additional Information:

Car registered on or after 1 April 2017, road tax rules have been changed for them. There will be flat standard rate of £140 for all cars except cars with the list price above £40,000 will attract additional pay of £310 per year for the first five years in which the standard rate is paid.