Rachel Reeves confirms £280 charge for drivers | Tech News
Some motorists are having to pay up to £280 per 12 months to make use of the highway as a consequence of new car tax updates launched by Chancellor Rachel Reeves. New Vehicle Excise Duty (VED) car tax bands got here into impact from April 1, with prices rising throughout the board for virtually all petrol, diesel and electric car homeowners.
Among these set to be hit by new charges are homeowners of brand-new automobiles, with first-year tax charges amongst these on the up. First-year tax charges are a hefty charge paid by homeowners of new automobiles in 12 months one, with charges various based mostly on every vehicle’s emissions.
Highly-polluting autos emitting over 255g/km of CO2 are paying essentially the most, with prices set at a whopping £5,690 to make use of the roads. Charges fall amongst cleaner automobiles, with fashions emitting between 76 and 90g/km of CO2 set to pay £280 every year.
This is up £10 on the £270 charged to those homeowners forward of the April tax 12 months, however is more than double the speed paid by motorists over the 2024/25 tax 12 months. Just over a 12 months in the past, first-year homeowners falling into this class paid simply £135 to get behind the wheel, with charges now up £145.
Cars falling into this class have a tendency to incorporate fashionable full hybrids and extremely environment friendly plug-in hybrids. Extremely environment friendly, small-engine petrol automobiles would possibly simply fall into this class, however combustion fashions are likely to emit barely more emissions and may miss out.
VED is obligatory, that means motorists should tax their vehicle yearly to legally keep on the highway. This could be achieved online in minutes, with charges paid both upfront or in instalments.
HMRC confirmed the increase to tax charges shortly after Rachel Reeves’ Autumn Budget final 12 months.
It 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.”
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