Rachel Reeves confirms new £225 charge for drivers | Tech News
Motorists are paying up to £225 to make use of the roads as a consequence of a new car tax payment launched by Rachel Reeves. The Chancellor oversaw the introduction of a sequence of new car tax charges from April, with costs up throughout the board.
Petrol, diesel and electric car homeowners are all going through new prices, with automobiles registered between 2001 and 2017 are amongst these affected. Cars registered between these years are positioned into one of 13 tax bands depending on general vehicle emissions. Cars in tax band F, emitting between 141 and 150g/km of CO2 at the moment are paying £225 to make use of the roads.
This is up £10 on the £215 charged to street customers on this class over the 2025/26 tax yr, and up £15 on the £210 slapped on motorists between 2024/25.
Cars on this class embody fashionable hatchbacks, compact household SUVs, and economical estates. Cars within the subsequent band, emitting between 151 and 165g/km of CO2 pay a lot more, with payments now standing at £275 per yr.
VED is a legal requirement, that means street customers should get their car taxed yearly with a purpose to keep on the roads. VED might be paid upfront each 12 months, or motorists can break up their payments into instalments, however could possibly be charged more.
Motorists can pay for their car tax online in a matter of minutes. However, these with out entry to the web can tax a vehicle over the telephone or in individual on the Post Office.
Road tax fees increase yearly in step with inflation in order that costs keep up tempo with real-time values.
Late final yr, HM Revenue and Customs defined that the April 2026 increase was a easy inflationary rise in step with the Retail Price Index (RPI).
HMRC 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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