DVLA confirms new £210 Direct Debit charge for | Tech News
UK petrol drivers are being slapped with new £210 Direct Debit costs this tax yr.
The DVLA has now confirmed the second yr licence charges for Vehicle Tax which will probably be levied in opposition to vehicles first registered on or after April 1, 2017, which is able to apply from April 1, 2026 onwards.
As verified by the RAC, from April 1, 2026, the usual tax price for all petrol, diesel and hybrid vehicles registered after April 1, 2017, rises to £200 from the present £195. But for these paying in instalments by direct debit, the price will probably be elevated even greater, at £210 for the yr.
This is simply for vehicles valued at below £40,000 (or £50,000 for an EV), when it was first bought. Those above the thresholds can pay an ‘expensive car supplement’ that can add one other £440 to the annual price.
The RAC explains: “From April 1, 2026, the standard tax rate for all petrol, diesel or hybrid cars registered after April 1, 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.”
The RAC explains: “Vehicle Excise Duty (VED) – also known as car tax or road tax – is essentially a tax for using a vehicle on public roads in the UK.
“It was launched in 1937 and changed the outdated system of street tax, which traces its roots back to the taxation of Hackney Carriages within the seventeenth century.
“Each year, the DVLA collects around £5 billion in VED, but not all of this is spent on road improvements and infrastructure. In fact, VED is grouped in with other forms of tax, meaning the income from your road tax is just as likely to be spent on education or healthcare as it is on roads.”
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