New HMRC April car tax bands with drivers paying | Tech News

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New HMRC April car tax bands with drivers paying | Tech News

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Motorists are having to pay hundreds of kilos to get behind the wheel attributable to new car tax bands, which got here into impact this month. New Vehicle Excise Duty (VED) costs started affecting motorists from April 1, 2026, with street customers hit by annual inflationary rises.

VED charges have gone up throughout the board, with virtually all petrol, diesel and electric car homeowners affected ultimately. However, homeowners of brand-new automobiles are among the many most affected, with first-year VED charges seeing the biggest will increase. Owners of brand-new, extremely polluting fashions emitting over 255g/km of CO2 have been hit with payments £200 larger, taking annual prices to £5,690.

New fashions emitting between 226 and 255g/km of CO2 are subsequent, with these street customers dealing with the following highest increase, with annual prices now at £4,850 per 12 months. It comes simply a 12 months after Labour doubled first-year tax charges, which despatched costs skyrocketing.

Just over 12 months in the past, homeowners of model new fashions emitting over 255g/km of CO2 have been paying simply £2,745 to get behind the wheel. Although HM Revenue and Customs (HMRC) manages the laws and coverage behind the tax, charges are collected and processed by the DVLA.

The new 2026/27 charges are set out in HMRC’s charges and allowances report revealed final December.

HMRC beforehand stated: “As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.”

However, it’s not all dangerous information for first-year car homeowners, with charges not altering for these choosing electric automobiles. The first-year VED price stays at £10 in 2026/27 for any vehicle emitting 0g/km of CO2, the identical charge as issued to street customers in 2025/26.


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