Rachel Reeves confirms new £445 charge for drivers | Tech News
Some drivers are paying £445 to get behind the wheel of their autos underneath new car tax expenses launched by Rachel Reeves. The Chancellor is in charge of Vehicle Excise Duty (VED) charges, with new will increase hitting drivers from earlier this month.
Among these affected by new tax charges are automobiles registered between 2001 and 2017, with homeowners positioned into one of 13 tax bands primarily based on their vehicle emissions. Vehicles falling into Band Okay, emitting between 201 and 225g/km of CO2, are impacted by price hikes, with payments rising to £445 every year.
This is a £15 increase on expenses utilized to highway customers earlier than April 1, the place annual VED prices for Band Okay drivers stood at simply £430. Between the 2024/25 tax yr, homeowners on this class have been charged simply £415, which means prices have jumped £30 in simply over a yr.
However, these homeowners are not paying the most costly charges, with more polluting fashions slapped with increased prices. Vehicles in car tax Band L, emitting between 226 and 25g/km of CO2 will price £760 per yr to make use of the roads in 2026. Meanwhile, these in car tax Band M for automobiles emitting over 255g/km if Co2 can pay £790 every year underneath the updates.
VED charges increase each spring in step with the Retail Price Index (RPI) inflation figures to make sure tax revenues preserve their real-term worth. VED is now utilized to virtually all autos, with petrol, diesel, and now electric automobiles all paying the charges.
However, high-emission autos are often focused more than cleaner fashions, with electric autos provided essentially the most reasonably priced charges.
HM Revenue and Customs (HMRC) confirmed the new VED charges in direction of the top of final yr after Rachel Reeves’ Autumn Budget assertion. Motorists should pay VED to remain on the roads, with highway customers in a position to settle their charge yearly, each six months or month-to-month by way of Direct Debit.
The RAC defined: “Chancellor Rachel Reeves announced important changes to the car tax system in the UK as part of the Autumn Budget. These changes will affect how much road tax you will pay in 2026 and beyond.”
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