DVLA confirms new £200 charges for petrol drivers | Tech News

UK petrol drivers are being slapped with new £200 charges this May that began in April.

The DVLA has confirmed the second yr licence charges for Vehicle Tax which will likely be levied in opposition to automobiles first registered on or after April 1, 2017, relevant from April 1, 2026 onwards.

As confirmed by the RAC, from April 1, 2026 the usual tax fee for all petrol, diesel and hybrid automobiles registered after April 1 2017 rises to £200 from the present £195.

For these paying in instalments by direct debit, the price will likely be greater nonetheless, at £210.

This is simply for automobiles valued at below £40,000 (or £50,000 for an EV), when it was first bought. Those above the thresholds pays an ‘expensive car supplement’ that can add one other £440 to the annual price.

The RAC explains: “From 1 April 2026, the standard tax rate for all petrol, diesel or hybrid cars registered after 1st April 2017 rises to £200.

If you pay for six months tax, it’ll cost £110, or £105 if you opt to set up a direct debit. If you pay in 12 monthly instalments your total car tax cost will be £210.

“If your vehicle had a list price that exceeded £40,000 when it was first sold (or £50,000 if your car is electric) then you may also be liable for the ‘luxury car tax’ fee, which now adds £440 to the vehicle’s annual VED costs – taking it up to £640.

“You may pay less or more if your car was first used before 2017. The exact fee for your annual road tax will boil down to the year your car was first registered, the type of fuel it uses and its tailpipe emissions.”

Mike Thompson, Chief Operating Officer at Leasing Options, stated: “If your car tax renewal is after 1 April 2026, you’ll need to budget for the new £200 standard rate, up from £195. For vehicles with higher emissions or higher list prices, the changes will mean a larger increase, so it’s important to factor these into your household budget.”

He added: “If you’re considering a new car, it’s essential to compare VED rates for different fuel types, such as petrol, diesel, hybrid, or electric vehicles. Electric vehicles (EVs) priced around £40k–£50k may benefit from the increased luxury tax threshold if purchased before April. For company cars, check with your employer or payroll for updated BiK calculations to understand how these tax changes will affect you.”