UK drivers face £360 car tax charge in 2026 update | Tech News
Certain UK drivers are paying up to £360 in car tax to make use of Britain’s roads after a huge 2026 update noticed charges rise. Vehicle Excise Duty (VED) costs had been elevated throughout the board earlier this 12 months, with petrol, diesel and electric house owners all being slapped with greater payments.
One set of street customers feeling the results of price rises from April 2026 are van house owners, with some now charged up to £360 to remain behind the wheel. Early Euro 4 and Euro 5 compliant vans registered after March 2001 pays simply £140, with no change utilized to the charges motorists paid final 12 months.
However, all different vans pays barely more than in 2025, with charges rising from £345 to £360 from April 2026. Motorists deciding to pay their car tax in two instalments pays barely more, with street customers set to be charged £198 each six months.
The increase is barely greater than the rise house owners skilled final spring when total prices jumped from £335 to £345 every year.
The new van prices had been confirmed by HM Revenue and Customs shortly after Rachel Reeves’ Autumn funds final November. However, HMRC pressured that the most recent increase was merely to keep car tax prices in line with inflation.
They defined: “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 April 1, 2026.”
Motorists must have VED to legally drive on UK roads, meaning motorists have no choice but to pay the charge to retain their freedoms.
Only historic vehicles or cars used by disabled individuals can secure exemptions from paying the annual charge.
AutoTrader said: “Vehicle Excise Duty (VED), sometimes referred to as road tax, is a legal requirement for driving any van or vehicle on the UK’s roads.
“VED payable differs for cars and vans. The good news is that working out your VED is usually simpler for vans – van owners pay a flat rate set out by the DVLA. You can either make a single payment for the next six or 12 months, or you can pay in instalments each month.”
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